Welch v. Contreras

174 S.W.3d 53, 2005 Mo. App. LEXIS 1554, 2005 WL 2739377
CourtMissouri Court of Appeals
DecidedOctober 25, 2005
DocketWD 64832
StatusPublished
Cited by6 cases

This text of 174 S.W.3d 53 (Welch v. Contreras) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welch v. Contreras, 174 S.W.3d 53, 2005 Mo. App. LEXIS 1554, 2005 WL 2739377 (Mo. Ct. App. 2005).

Opinion

THOMAS H. NEWTON, Judge.

Ms. Kory A. Welch appeals a circuit court judgment dismissing her case with prejudice, claiming that she neither improperly split her cause of action nor violated the pending action doctrine or section 509.290.1(8), 1 because the parties to her Missouri action were not the same parties to a similar action previously filed in Kansas. We affirm in part and reverse in part.

In January 2003 Ms. Welch filed an action in a Kansas state court against Mr. Eli Contreras, Producers Mortgage Corporation (PMC), John Doe(s) 1-5, and a number of other defendants. The case was removed to federal court and then remanded back to state court. While the case was pending in federal court, Ms. Welch filed a first amended complaint that inadvertently omitted Mr. Contreras as a defendant. A magistrate judge refused to allow Ms. Welch to file a second amended complaint to restore Mr. Contreras as a defendant, because he had not been timely served when the case had initially been removed. Hence, he was not a party to the Kansas action when Ms. Welch filed substantially similar claims against him and PMC in May 2004 in Platte County, Missouri.

Both lawsuits arose out of alleged misconduct on the part of Mr. Contreras and other PMC employees in a mortgage refinance transaction that involved Ms. Welch and her former husband and property they owned in Kansas. Mr. Contreras, a Platte County, Missouri, resident, was a mortgage loan officer trainee for PMC. In the Missouri action, Ms. Welch sought to hold him liable for breaching his fiduciary duties as an agent and employee of PMC; *55 in both actions she sought to hold PMC liable under respondeat superior for its employees’ conduct. 2

The Kansas lawsuit, after the federal-based claims were dismissed, contains counts for fraud, negligence, civil conspiracy, defamation, and violation of the Kansas Consumer Protection Act. The Missouri lawsuit contains counts for fraud, negligence, civil conspiracy, defamation, and violation of the Missouri Merchandising Practices Act. Ms. Welch’s plea for damages under each count in the Missouri lawsuit is linked to recovery available under this Missouri statute. The counts in the Kansas action stand alone with respect to Ms. Welch’s claims for damages.

PMC and Mr. Contreras filed a motion to dismiss the Missouri lawsuit, claiming that the “pending action doctrine,” section 509.290.1(8), and an impermissible splitting of the cause of action barred Ms. Welch’s suit. The circuit court granted the motion, and this appeal followed. Ms. Welch claims that the doctrines which defendants invoked do not apply to cases involving different parties and that Mr. Contreras was never a party to the Kansas action because he was never served with process. Responding to her claims, defendants further contend that the doctrines of res judi-cata, respondeat superior, and collateral estoppel also apply to bar the Missouri litigation, because the Kansas matter was tried to a verdict on its merits, while this appeal has been pending. 3 Because this contention refers to matters outside the legal record, we will not consider it further.

The parties state that the appropriate standard of review for the grant of a motion to dismiss is de novo and is guided by whether the petition “invokes principles of substantive law.” Koger v. Hartford Life Ins. Co., 28 S.W.3d 405, 409-10 (Mo.App. W.D.2000). Because the disposition of defendants’ motion to dismiss required the consideration of matters extraneous to the pleadings, 4 the motion was actually a motion for summary judgment, and it should have been treated as such. Chaney v. Cooper, 954 S.W.2d 510, 515 (Mo.App. W.D.1997). Our review continues to be de novo, and we will affirm the circuit court’s grant of the motion if no genuine issue of material fact exists and the movant is entitled to judgment as a matter of law. Id.

There are no genuine issues of material fact. There is no dispute that Ms. Welch filed a lawsuit in Kansas against PMC and *56 other defendants arising out of a mortgage refinance transaction. Nor do the parties dispute that the Missouri lawsuit, also arising out of the same mortgage refinance transaction, was subsequently filed against PMC and a person who was not a party to the Kansas lawsuit. Moreover, there can be no dispute that the tort claims in each lawsuit are based on the same legal theories, i.e., fraud, negligence, civil conspiracy, defamation, and violation of consumer protection legislation. The first prong of our summary judgment review has accordingly been met.

Section 509.290 sets forth objections that may be raised by motion. Under subsection 1(8), a party may object “[t]hat there is another action pending between the same parties for the same cause in this state.” This section is inapplicable because the previously filed action was not filed in Missouri.

Similarly, the “pending action doctrine,” otherwise referred to as abatement, does not apply to cases pending concurrently by the same parties in the courts of different states. Jewell v. Jewell, 484 S.W.2d 668, 674 (Mo.App.1972). Rules of comity, however, do apply, “and parallel results should normally be expected.” Id. Thus, where courts in two different states have coordinate jurisdiction, the one whose jurisdiction first attaches retains it and proceeds to final judgment regardless of any action taken by the other court. Id. See also Grey v. Indep. Order of Foresters, 196 S.W. 779, 783-84 (Mo.App.1917) (Missouri court did not err in refusing to recognize binding force of Canadian court judgment where parties’ dispute was first submitted to Missouri court’s jurisdiction). Comity and the duty to recognize the validity and effect of court proceedings in a foreign jurisdiction are not regarded as absolute rights, but are rather self-imposed restraints. Id. at 783. Thus, we cannot say as a matter of law, under principles of comity, that PMC was entitled to dismissal of the Missouri action. Nor, as a matter of judicial discretion, would this be an appropriate basis on which to affirm a motion for summary judgment. Chaney, 954 S.W.2d at 515.

Defendants also claim that Ms. Welch impermissibly split her cause of action. The Eastern District has established the principle that a plaintiff may not split her cause of action and try a single claim against different defendants seriatim. State ex rel. Todd v. Romines, 806 S.W.2d 690, 692 (Mo.App. E.D.1991); Hagen v. Rapid Am. Corp., 791 S.W.2d 452, 455 (Mo.App. E.D.1990). No authority is cited for this principle other than “our rules.” Hagen, 791 S.W.2d at 455.

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Cite This Page — Counsel Stack

Bluebook (online)
174 S.W.3d 53, 2005 Mo. App. LEXIS 1554, 2005 WL 2739377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welch-v-contreras-moctapp-2005.