Environ. Energy Partners v. Siemens Bldg.

Decision Date25 October 2005
Docket NumberNo. 26702.,No. 26521.,26521.,26702.
Citation178 S.W.3d 691
PartiesENVIRONMENTAL ENERGY PARTNERS, INC., Respondent-Appellant, v. SIEMENS BUILDING TECHNOLOGIES, INC., St. John's Regional Medical Center, and Mercy Lifecare Systems, Inc., Appellants-Respondents.
CourtMissouri Supreme Court

Mark Arnold, JoAnn T. Sandifer, Husch & Eppenberger, LLC, St. Louis, Charles B. Cowherd, Husch & Eppenberger, LLC, Springfield, for appellants/respondents.

Brian J. Rayment, Kivell, Rayment & Francis, P.C., Tulsa, OK, James Fossard, Pratt & Fossard, Springfield, for respondent/appellant.

JOHN E. PARRISH, Presiding Judge.

This is an appeal by Siemens Building Technologies, Inc., (Siemens) and St. John's Regional Medical Center and Mercy Lifecare Systems, Inc., (collectively referred to as St. John's) and a cross-appeal by Environmental Energy Partners, Inc. (EEP). The action that produced the judgment that is appealed began with a petition filed by Siemens against EEP and St. John's. The petition sought damages for work Siemens performed on property owned by St. John's pursuant to a subcontract with EEP and enforcement of a mechanic's lien on St. John's property. St. John's filed a cross-claim against EEP seeking damages for attorneys' fees and costs incurred "in defending the Mechanic's Lien Claim of Siemens."

EEP filed a cross-petition against St. John's for breach of contract seeking the balance of the contract amount that remained unpaid pursuant to its contract with St. John's. EEP later filed a four-count counterclaim against Siemens. The claims against Siemens were actions for breach of contract (Count I), interference with contract (Count II), malicious prosecution (Count III), and abuse of process (Count IV). Count I sought damages for any amount "awarded [St. John's] ... on [St. John's] cross-claim." Counts II, III, and IV each sought actual and punitive damages, attorneys' fees, and costs.

The factual background and initial stages of the procedural background of this case are stated in Siemens Building Technologies, Inc. v. St. John's Regional Medical Center, 124 S.W.3d 3 (Mo.App.2004) (Siemens I). Siemens I may be reviewed for a complete statement of facts and a recitation of procedural events that occurred prior to the circumstances that produced this appeal. Facts related to issues addressed in this opinion are set forth in the discussions that follow regarding the points for determination by this appeal.

The first trial in this matter began August 15, 2000. Prior to its start, Siemens dismissed its action against St. John's for enforcement of a mechanic's lien. Siemens proceeded with its claim against EEP for breach of contract. St. John's dismissed its cross-claim against EEP. Verdict was returned in favor of Siemens on its breach of contract action against EEP, but the damages the jury assessed for breach of contract were reduced by an "offset" for liquidated damages to which the jury found EEP entitled due to late completion of work by Siemens. Judgment was rendered on November 28, 2000. The judgment states, as applicable to this appeal:

A. Cross-Claim of [St. John's] against [EEP] be and is hereby dismissed without prejudice pursuant to § 429.140, R.S.Mo.

B. [Siemens'] Amended Petition to Enforce its Mechanic's Lien as to the real estate and improvements owned by [St. John's] be and is hereby dismissed with prejudice; all claims of [Siemens'] Mechanic's Lien rights respecting Lien No. 3597 be and are hereby satisfied in all respects; and,

...

D. Counterclaim [Count I] of [EEP] against [Siemens] be and is hereby dismissed with prejudice; and,

E. On the claim of [Siemens] against [EEP], Judgment is granted in favor of [Siemens] and against [EEP] on [Siemens'] Amended Petition For Breach of Contract. The Jury finding respecting the off-set of [EEP] in the amount of $154,250.00 is herewith credited as an off-set to the Jury finding in favor of [Siemens] for $52,703.75 and the Court Orders that [Siemens] take nothing from [EEP] by reason of said off-set and that [EEP] take nothing from [Siemens] by reason of said off-set;1 and,

...

G. Pursuant to Rule 74.01(b) the Court finds there is no just reason for delay in entering this Judgment and this Judgment is final and appealable.

The judgment was not appealed.

EEP's claim against St. John's for breach of contract and its remaining claims against Siemens (counterclaim Counts II, III, and IV) were tried before a jury at a later date. Trial began June 7, 2004. Verdicts were returned in favor of EEP on its claim against St. John's and on all its claims against Siemens as follows:

VERDICT A — EEP's action against St. John's for breach of contract: the jury found for EEP and assessed damages owed EEP, as instructed by the trial court, in the amount of $101,546.25.

VERDICT B — EEP's action against Siemens for malicious prosecution: the jury found for EEP, awarded no actual damages but awarded $3,000,000 punitive damages.

VERDICT C — EEP's action against Siemens for abuse of process: the jury found for EEP, awarded no actual damages but awarded $201,175 punitive damages.

VERDICT D — EEP's action against Siemens for interference with contracts: the jury found for EEP, awarded $26,100 actual damages and $500,000 punitive damages.

Siemens filed a motion for Judgment Notwithstanding the Verdict and Alternative Motion for Remittitur directed to the punitive damages verdicts. The trial court granted the motion in part and denied it in part. It granted the motion with respect to punitive damages awarded in Verdicts B and C. It entered judgment on counterclaims II and III, awarding EEP nothing for the reason that no actual damages were awarded. The trial court observed that it was setting aside the two punitive damages awards "only because the law appears to disallow punitive damages when no actual damages are awarded."

Judgment was entered as follows:

It is hereby Ordered, Adjudged and Decreed, that Judgment be entered on Verdict A in favor of EEP on its Cross-Petition against St. John's and that EEP have and recover from St. John's damages in the amount of $101,546.25, prejudgment interest thereon in the amount of $70,108.64 from August 8, 2000, through June 9, 2004, with interest at a rate of 18% per annum from June 10, 2004, on the sum of $101,546.25, and with interest at a rate of 9.0% per annum from June 10, 2004, on the sum of $70,108.64.

It is hereby Ordered, Adjudged and Decreed, that Judgment be entered on Verdict B in favor of Siemens on EEP's counterclaim for malicious prosecution and the [sic] EEP shall recover nothing thereon.

It is hereby Ordered, Adjudged and Decreed, that Judgment be entered on Verdict C in favor of Siemens on EEP's counterclaim for abuse of process and EEP shall take nothing thereon.

It is hereby Ordered, Adjudged and Decreed, that Judgment be entered on Verdict D in favor of EEP on its counterclaim for tortious interference against Siemens and EEP shall have and recover from Siemens the amount of $26,100.00 in actual damages, prejudgment interest in the amount of $9,009.86 from August 16, 2000, through June 9, 2004, with interest at the statutory rate per annum from that date, and $500,000.00 in punitive damages, together with post judgment interest thereon at the statutory rate per annum.

It is hereby Ordered, Adjudged and Decreed, that Judgment be entered in favor of EEP and against St. John's for EEP's attorneys' fees of $65,493.75 and costs of $407.00.

Dated this 9th day of August, 2004.

The judgment is affirmed except as to attorneys' fees awarded in favor of EEP and against St. John's. The award of attorneys' fees is reversed. The case is remanded with directions that attorneys' fees be limited to those fees incurred in the part of the litigation required to collect the amount of the installment St. John's failed to pay as required by the terms of its contract with EEP; that the trial court determine the reasonable attorneys' fees attributable to the breach of contract action.

Siemens' and St. John's Appeal, No. 26521

Point I in No. 26521 (Siemens' Point I) argues that the trial court erred in entering judgment against Siemens for tortious interference with contract, in accordance with Verdict D, because EEP failed to establish lack of justification of Siemens in the actions Siemens took. Siemens argues it had "probable cause to file its lawsuit" against St. John's and EEP and received a favorable verdict in that action; that it used no improper means to collect the debt the lawsuit asserted it was owed. The judgment for tortious interference to which Point I is directed awarded EEP actual damages of $26,100 plus interest and punitive damages of $500,000.

Tortious interference with a contract or business expectancy requires proof of five elements: (1) a contract or valid business expectancy; (2) defendant's knowledge of the contract or relationship; (3) an intentional interference by the defendant inducing or causing a breach of the contract or relationship; (4) absence of justification; and (5) damages. Acetylene Gas Co. v. Oliver, 939 S.W.2d 404, 408[2] (Mo.App.1996) (citing Nazeri v. Missouri Valley College, 860 S.W.2d 303, 316 (Mo.banc 1993); Community Title Co. v. Roosevelt Fed. Sav. and Loan Ass'n, 796 S.W.2d 369, 372[4] (Mo.banc 1990)). To prevail on this tort claim, a party must adduce substantial evidence supporting each and every element. 21 West, Inc. v. Meadowgreen Trails, Inc., 913 S.W.2d 858, 870 (Mo.App.1995).

Birdsong v. Bydalek, 953 S.W.2d 103, 111 (Mo.App.1997).

The verdict-directing instruction regarding EEP's claim against Siemens for tortious interference with contract, Instruction No. 24, told the jury:

Your verdict must be for EEP and against Siemens if you...

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