Financial Guardian, Inc. v. Kutter, 44332

CourtMissouri Court of Appeals
Writing for the CourtCRIST; REINHARD, P. J., and SNYDER
CitationFinancial Guardian, Inc. v. Kutter, 630 S.W.2d 197 (Mo. App. 1982)
Decision Date26 January 1982
Docket NumberNo. 44332,44332
PartiesFINANCIAL GUARDIAN, INC., Apellant, v. James D. KUTTER, Respondent.

William B. Smith, St. Louis, for appellant.

Kenneth C. Brostron, St. Louis, for respondent.

CRIST, Judge.

Appellant, Financial Guardian, Inc., entered into a employment contract with respondent James D. Kutter on July 1, 1975. This contract contained a covenant not to compete for three years after leaving the employ of Financial Guardian. Financial Guardian's petition, filed February 5, 1981, sought injunctive relief, money damages and an accounting for monies received by Kutter as a result of an alleged breach of the covenant. Financial Guardian's petition incorporated the employment contract, asserted that the contract was not renewed on July 1, 1979, that Kutter continued in the employ of Financial Guardian until May 31, 1980, and that Kutter had become associated with a competing insurance company. The trial court sustained Kutter's motion to dismiss. We affirm.

The question to be resolved is whether or not Financial Guardian pled itself out of court by pleading "on or about July 1, 1979, said contract was not renewed." Because the employment contract containing the restrictive covenant was admittedly terminated before the restriction became operative, we hold that the trial court properly dismissed Financial Guardian's petition.

A petition is not to be dismissed for failure to state a claim unless it appears the plaintiff can prove no set of facts which would entitle it to relief. Ghertner v. Lipton, 563 S.W.2d 531, 532 (Mo.App.1978). Financial Guardian admitted Kutter was still in its...

Get this document and AI-powered insights with a free trial of vLex and Vincent AI

Get Started for Free

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex
2 cases
  • IN RE BENNETT PAPER CORP., Bankruptcy No. 85-00782(2)
    • United States
    • U.S. Bankruptcy Court — Eastern District of Missouri
    • September 16, 1986
    ...of law, Counts I and II which sound in contract must be dismissed. In support of their argument, Defendants cite Financial Guardian, Inc. v. Kutter, 630 S.W.2d 197 (Mo.App.1982). In that case Kutter entered an employment contract with Financial Guardian on July 1, "This contract contained a......
  • Shelbina Veterinary Clinic v. Holthaus
    • United States
    • Missouri Court of Appeals
    • February 7, 1995
    ...they entered into a new contract, which did not include a covenant not to compete. Defendant relies on Financial Guardian, Inc. v. Kutter, 630 S.W.2d 197 (Mo.App.1982), to support her proposition that the contract was not in effect when she quit. In Financial Guardian, an insurance company ......
6 books & journal articles
  • Section 60 Requirement of a Valid and Enforceable Contract
    • United States
    • The Missouri Bar Practice Books Employer-Employee Law Deskbook Chapter 6 Employees Not
    • Invalid date
    ...the employer is precluded from enforcing the covenant when the employee terminates employment. Financial Guardian, Inc. v. Kutter, 630 S.W.2d 197, 198 (Mo. App. E.D. 1982). The noncompete agreement must be supported by consideration. Typically, in the context of an employment agreement, the......
  • Section 6 Accountants
    • United States
    • The Missouri Bar Employer-Employee Law (2008 Supp) Chapter 17 Restrictive Employment Covenants
    • Invalid date
    ...employer, the employer is precluded from enforcing the covenant when the employee terminates employment. Fin. Guardian, Inc. v. Kutter, 630 S.W.2d 197, 198 (Mo. App. E.D. 1982). But see Shelbina Veterinary Clinic v. Holthaus, 892 S.W.2d 803, 805 (Mo. App. E.D. 1995) (upholding a restrictive......
  • Section 7 Conflict of Laws and Forum Selection Clauses
    • United States
    • The Missouri Bar Employer-Employee Law (2008 Supp) Chapter 17 Restrictive Employment Covenants
    • Invalid date
    ...employer, the employer is precluded from enforcing the covenant when the employee terminates employment. Fin. Guardian, Inc. v. Kutter, 630 S.W.2d 197, 198 (Mo. App. E.D. 1982). But see Shelbina Veterinary Clinic v. Holthaus, 892 S.W.2d 803, 805 (Mo. App. E.D. 1995) (upholding a restrictive......
  • Section 4.35 Specific Performance of Negative Covenants
    • United States
    • The Missouri Bar Practice Books Contracts Deskbook Chapter 4 Remedies
    • Invalid date
    ...courts have construed negative covenants in employment contracts strictly against the employer. In Financial Guardian, Inc. v. Kutter, 630 S.W.2d 197 (Mo. App. E.D. 1982), after terminating the contract, the employer permitted the employee to remain in its employ. The court concluded that t......
  • Get Started for Free