Zeiser v. Tajkarimi

184 S.W.3d 128, 2006 Mo. App. LEXIS 158, 2006 WL 327962
CourtMissouri Court of Appeals
DecidedFebruary 14, 2006
DocketED 85922, ED 85955
StatusPublished
Cited by8 cases

This text of 184 S.W.3d 128 (Zeiser v. Tajkarimi) 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
Zeiser v. Tajkarimi, 184 S.W.3d 128, 2006 Mo. App. LEXIS 158, 2006 WL 327962 (Mo. Ct. App. 2006).

Opinion

LAWRENCE E. MOONEY, Judge.

This Court is presented with an appeal and cross-appeal from summary judgment entered in a contract dispute. Because the contract is ambiguous, summary judgment was improperly granted and, thus, we reverse and remand.

Factual and Procedural Background

This is an action between Three Rivers Systems, Inc., a software-development corporation, and its sole owner/shareholder, Mr. Amir H. Tajkarimi, on one hand, and on the other, Donald K. Zeiser, a former shareholder who remained engaged by the corporation as a consultant following the redemption of his company stock. Prior to August 2000, Mr. Tajkarimi and Mr. Zeiser were the sole owners/shareholders of Three Rivers. 1 In August of 2000, the parties agreed that Three Rivers would redeem all of Zeiser’s corporate stock, and that Zeiser would resign as a director of Three Rivers. At the same time, the parties entered into a consulting agreement, whereby Three Rivers agreed to retain Zeiser as a consultant. It is this consulting agreement, and specifically the provisions for payment to Zeiser for his consulting services, that is at issue in the present action.

For his consulting services, Zeiser was to be paid according to the provisions set out in section 3 of the consulting agree *130 ment. 2 This section had a number of sub-paragraphs that provided for a variety of payments, including subparagraph (a) that provided for an annual salary, and subpar-agraphs (b) and (c) that provided for quarterly payments equal to 20% of the net income of Three Rivers for the quarter. At the very heart of the debate in this case is subparagraph (d), which provides as follows:

d) After the Stock Redemption Price has been paid in full under Section 2.1 of the Stock Redemption Agreement, 3 within 30 days of the end of the immediately preceding and each subsequent calendar quarter or other period as mutually agreed upon by the parties, a payment shall be made equal to an additional 30% of the Net Income (hereafter defined) of Three Rivers for the quarter or other agreed upon period just ended and for each quarter or other agreed upon period thereafter (less for the first quarter or other period only, the last payment under the Stock Redemption Agreement applied toward the Stock Redemption Price), until an aggregate sum of $1,400,000 has been paid to DKZ. Upon termination of this Agreement by either party, payments under this paragraph d) shall continue but at the increased percentage of 50% of Net Income.

Three Rivers and Mr. Tajkarimi (collectively the defendants) terminated the consultant agreement in September of 2003, and ceased making payments to Zeiser. 4 *131 The consulting agreement provided that, upon termination of the agreement, all payments under Section 3(a), (b), (c), and (e) would cease, but that Three Rivers would continue to have liability for payments under sections 3(d).

Zeiser filed suit against the defendants. In the first two counts of his six-count petition, Zeiser alleged breach of contract for the defendants’ failure to pay the full amount of the $1,400,000 owed him under subparagraph 3(d) of the consulting agreement. 5 Zeiser claimed he was still owed approximately $677,000 under this section.

The defendants answered, and Three Rivers filed various counterclaims against Zeiser. 6 The defendants then moved for summary judgment on all counts of Zeiser’s petition. As to Zeiser's breach-of-contract claims, the defendants contended that they had fulfilled their obligation to Zeiser, and thus were entitled to judgment as a matter of law, because the aggregate sum of all payments made to Zeiser under the consulting agreement had exceeded 1.4 million dollars, exclusive of the stock redemption price, and because the defendants had terminated the consulting agreement before any further payments to Zeiser accrued. In the defendants’ view, the phrase appearing in subparagraph 3(d) — “until an aggregate sum of $1,400,000 has been paid” — -meant that all of the payments stipulated to be due for consulting services accumulated until the amount of 1.4 million dollars had been paid.

Zeiser also moved for partial summary judgment, seeking judgment in his favor on the issue of material breach of contract by the defendants, as alleged in the first two counts of his petition. 7 In Zeiser’s view, “aggregate sum” meant only the aggregate of the payments made pursuant to subparagraph (d); payments made pursuant to the other subparagraphs of section 3 were not to be included in the 1.4 million-dollar payment. Zeiser argued that the consulting agreement provided for three distinct types of compensation. First, Zeiser contended he was to receive an annual salary under section 3(a). Sec *132 ond, Zeiser contended he was to receive quarterly payments equal to 20% of the net income of Three Rivers, as provided for in section 3(b) and (c) of the consulting agreement. And third, Zeiser contended he was also to receive 1.4 million dollars under section 3(d) of the consulting agreement. Zeiser admitted receiving the annual salary, as well as a total of $562,515 under the net-income provisions, sections 3(b) and (c), of the consulting agreement. Zeiser argued, however, that the defendants had materially breached the consulting agreement by only paying $735,485 of the 1.4 million dollars owed to him under section 3(d) of the agreement.

The trial court entered summary judgment for the defendants. In so doing, the court found that the phrase in section 3(d) of the consulting agreement, “until an aggregate sum of $1,400,000 has been paid,” was unambiguous, and meant that all amounts paid pursuant to the preceding subparagraphs should be aggregated. The court found that there was no genuine issue that payment made in accordance with consulting agreement had accumulated to more than 1.4 million dollars, and thus the defendants had no additional liability for payment to Zeiser. Accordingly, the trial court found that the defendants were entitled to summary judgment on Zeiser’s breaeh-of-eontraet claims. And, consequently, Zeiser’s other claims failed because the defendants had performed their agreement. Zeiser appeals the grant of summary judgment on all counts, citing as error the trial court’s misinterpretation of section 3(d) of the consulting agreement in its summary judgment on the breach-of-contract claims.

Standard of Review

Our review of a grant of summary judgment is essentially de novo. ITT Commercial Finance Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). We view the record in the light most favorable to the party against whom judgment was entered, and afford that party the benefit of all reasonable inferences. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
184 S.W.3d 128, 2006 Mo. App. LEXIS 158, 2006 WL 327962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zeiser-v-tajkarimi-moctapp-2006.