West County Internal Medicine, Inc. v. Domian Standard Service, Inc.

725 S.W.2d 116, 1987 Mo. App. LEXIS 3676
CourtMissouri Court of Appeals
DecidedFebruary 24, 1987
DocketNo. 50753
StatusPublished
Cited by7 cases

This text of 725 S.W.2d 116 (West County Internal Medicine, Inc. v. Domian Standard Service, Inc.) 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
West County Internal Medicine, Inc. v. Domian Standard Service, Inc., 725 S.W.2d 116, 1987 Mo. App. LEXIS 3676 (Mo. Ct. App. 1987).

Opinion

KELLY, Judge.

Domian Standard Service, Inc. appeals from a judgment entered against it following a jury verdict awarding $3,950.00 in damages to respondent West County Internal Medicine, Inc. in its action against Do-mian Standard Service, Inc. for breach of a bailment contract by conversion of respondent’s automobile and its contents. We reverse and remand.

Dr. Charles Kilo, a physician, had incorporated his medical practice as the professional corporation of West County Internal Medicine, Inc., respondent herein. West County owned a used 1977 Mercury Marquis four door sedan purchased in 1978 or 1979 for $7,800.00 as a business car for Dr. Kilo. Early one evening in January 1982 during a bitterly cold St. Louis winter the car stalled near an intersection. Dr. Kilo left the car along the side of the road and walked to his office, just a short distance away. The car allegedly contained in its trunk medical equipment including a portable EKG machine and two medical bags with medical supplies, all with a fair market value of about $1,100.

Arrangements were made for Domian Standard Service, Inc. to tow the car to its place of operation. Following the towing, several conversations ensued between appellant and respondent concerning the car and repairs needed. Each party’s recollection of the number of conversations, who initiated them, and the gist of their conversations differed. The upshot of the situation was that nearly six months after towing the car, Domian made no repairs and sold the car in August 1982 for $75.00 to a salvage operator dealer. Respondent subsequently initiated this action against Do-mian.

Domian asserts trial court error both in overruling Domian’s motion for directed verdict because no evidence established that Domian had actual or constructive notice of the contents of the car to create any bailment contract for the medical equipment in the trunk and also in submitting West County’s not-in-MAI verdict director because the instruction misstated the law of bailment.

Domian’s first point contends that there was no evidence that it had actual or constructive notice of the presence of medical equipment left in the trunk of respondent’s car. Absent notice of the trunk’s contents, Domian argues no bailment contract for these items existed.

[118]*118West County Internal Medicine, Inc. responds that its action against Domian alleged not only breach of a bailment contract, but also that Domian breached that contract by converting the bailed goods. West County argues that the evidence established Domian breached its bailment contract by appropriating the car and the medical equipment in the trunk to Domi-an’s own use and benefit by selling the car for salvage without West County’s knowledge or consent. Citing Coffman v. Faulkner, 591 S.W.2d 23, 26[8] (Mo.App.1979), West County states that the question of good faith and the elements of motive, knowledge or ignorance, or care or negligence are not involved in actions for conversion. Since its action encompassed both conversion and breach of a bailment contract, West County concludes the denial of Domian’s motion for directed verdict was proper.

It is this admitted overlap of the two theories which West County has pleaded in its single count petition that has created the difficulty in resolving Domian’s first point. In general, a bailment relation is a contractual arrangement. 8 Am.Jur.2d Bailments, § 54 (1980). The term “bailment” in its ordinary legal sense signifies a contract resulting from the delivery of a thing by the bailor to the bailee on condition that it be restored to the bailor in accordance with his directions as soon as the purpose for which it was bailed are satisfied. Ratterree v. General Motors Corp., 460 S.W.2d 309, 311[1] (Mo.App.1970).

Conversion is the unauthorized assumption of the right of ownership over the personal property of another to the exclusion of the owner’s right. Houston v. Columbia Federal Savings and Loan Association, 569 S.W.2d 211, 214[1] (Mo.App.1978). Proof of conversion can be shown either by: (1) a tortious taking, or (2) by any use or appropriation to the use of the person in possession, indicating a claim of right in opposition to the rights of the owner, or (3) by a refusal to give up possession to the owner on demand. Id. [2]. While conversion and breach of contract are theoretically two distinct principles for recovery in a bailment situation, West County has shaded one into the other to such an extent that it is almost impossible to determine which of two theories framed in the petition was presented to the jury.

However, regardless of which theory West County proceeded to trial on, conversion or breach of the contract of bailment, the conversion of bailed goods, here the contents of the bailed car, presupposes the existence of a valid bailment contract of the goods. As stated by this court in Crow Contracting Corp. v. George F. Smith Co., 407 S.W.2d 593, 600[13] (Mo.App.1966):

Whether the action is ex contractu or ex delicto, where the right to recover rests on the existence of the bailment relationship, and the fact of bailment is in issue, the burden of establishing such fact upon the whole case by an adequate degree of proof rests on the plaintiff and includes the burden of proving the making of a valid contract of bailment between the parties, the delivery to the bailee thereunder, and acceptance by the bailee.

Accord 8 Am.Jur.2d Bailments § 322 (1980). The very nature of bailment requires that there be a delivery by the bailor and an acceptance by the bailee of the subject matter of the bailment. Ratterree v. General Motors Corp., 460 S.W.2d at 311. It is certainly true that liability for the contents of an automobile under bailment depends on the notice or knowledge of the bailee of the presence of the contents. Bewley v. Allright Carpark, Inc., 617 S.W.2d 547, 551[3] (Mo.App.1981); see 38 Am.Jur.2d Garages, and Filling and Parking Stations § 49 et seq. (1968). Thus, while we agree with West County that, generally, the element of knowledge is not involved in actions of conversion, see Coffman, 591 S.W.2d at 26, knowledge is a critical element to establish a valid bailment. Absent such notice or knowledge, the requirement of acceptance by the bailee of the subject matter of the bailment is defeated, and no valid contract of bailment is created.

[119]*119Evidence of a bailment relationship between West County and Domian concerning the medical equipment in the trunk of the car was, as Domian asserts, nonexistent at trial. While West County alleged in its petition that Domian had knowledge that the items of personal property, the portable EKG machine, and the two medical bags with their contents, were inside the automobile, no evidence supports that Domian had knowledge of this personal property. Dr.

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725 S.W.2d 116, 1987 Mo. App. LEXIS 3676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-county-internal-medicine-inc-v-domian-standard-service-inc-moctapp-1987.