Kresge Co. v. Shankman

Citation212 S.W.2d 794
Decision Date24 May 1948
Docket NumberNo. 21006.,21006.
PartiesS.S. KRESGE COMPANY, A CORP., APPELLANT, v. MORRIS SHANKMAN AND AGNES E. SHANKMAN, HIS WIFE (AGNES E. SHANKMAN, ADMINISTRATRIX OF THE ESTATE OF MORRIS SHANKMAN, DECEASED, SUBSTITUTED BY ORDER OF COURT), AND MILDRED GODFRIED AND GILBERT GODFRIED, HER HUSBAND, RESPONDENTS.
CourtCourt of Appeal of Missouri (US)

Appeal from Circuit Court of Jackson County. Hon. James W. Broaddus, Judge.

AFFRIMED IN PART, REVERSED AND REMANDED IN PART.

Maurice J. O'Sullivan and John G. Killiger, Jr., for appellant, S.S. Kresge Company, a corporation.

(1) Jurisdiction. Kresge v. Shankman, 194 S.W. 2d 716; Barlow v. Scott, 85 S.W. 2d 504; Blake v. Shower, 202 S.W. 2d 895; Yacobianro v. J.D. Carson, 205 S.W. 2d 922; National Surety Corp. v. Burger's Estate, 183 S.W. 2d 93, Tr. App. 186 S.W. 2d 510; Boland v. Byrne, 145 S.W. 2d 755; General Theatrical Ent. v. Lyris, 121 S.W. 2d 139, Tr. App. 131 S.W. 2d 874. (2) The circuit court erred in adjudging that Mildred Godfried held paramount title by deed from Gussie Kort and that Kresge did not possess an easement. It erred in refusing to declare that a valid exclusive easement was vested in Kresge under Shankmans' lease and erred in refusing to declare that Godfrieds were not bona fide purchasers in good faith without notice but purchased with full notice, subject to Kresge's prior grant. Shankmans assumed and agreed to pay the Cohen mortgage as a matter of law. Gilmer v. Powell, 256 S.W. 124. (3) Godfrieds purchased with notice of and subject to the driveway easement granted to Kresge by Shankmans' prior lease. Brown v. Evans, 182 S.W. 2d 580; Stoutimore v. Quincy, O. & K.C. Ry. Co., 215 Mo. App. 194, 256 S.W. 121, 28 C.J.S. 711, sec. 48; Missouri Power & Light Co. v. Thomas, 102 S.W. 2d 564, 340 Mo. 1022, 28 C.J.S. 711, 714, secs. 48, 49; 55 Am. Jur. 1066, sec. 685; 22 Am. Jur. 1083, sec. 708; Ibid. p. 1087, sec. 712; Ibid. pp. 1093, 1099; secs. 720, 730; Ibid. pp. 1099, 1100, secs. 729, 732; Hallauer v. Lackey, 188 S.W. 2d 30, 353 Mo. 1244; Woodbury v. Conn. Mutual Life Ins. Co., 166 S.W. 2d 552, 350 Mo. 527; Langford v. Welton, 48 S.W. 2d 860; 45 Am. Jur. 527, sec. 172; McAboy v. Packer, 353 Mo. App. 1219, 187 S.W. 2d 207; Brandon v. Stone, 237 Mo. App. 671, 162 S.W. 2d l.c. 86; sec. 3427, R.S. Mo., 1939; Liedeker v. Grossman, 206 S.W. 2d 232. (4) Godfrieds are estopped to claim through the Cohen mortgage, which Shankmans were obligated to Kresge to pay. 14 Am. Jur. 547, sec. 100; Schwartz v. Westbrook, 154 F. 2d 854, 165 A.L.R. 1175; Clough v. Securities Reserve Co., 153 S.W. 2d 93; 21 C.J.S., sec. 110 (d), p. 972; 21 C.J.S. 908, sec. 38; 21 C.J.S. 949, 950, sec. 94; 62 A.L.R. 1257 to 1320; Welch v. U.S., 108 F. 2d 722; 141 A.L.R. 476; 14 Am. Jur. 572, sec. 138; Brown v. Evans, 182 S.W. 2d 580, 353 Mo. 400; Standard Live Stock Co. v. Pentz, 269 Pac. 645, 62 A.L.R. 1239; 62 A.L.R. 1257 to 1320. (5) Adler's agreement was a valid contract for Shankmans to redeem and was fully executed. Any title under Adler's trustee's deed reverted to Shankman. The trustee's deed was invalidated as a conveyance by redemption. Wright v. Cobb, 229 S.W. 171, l.c. 172; Schlumpf v. Shofner, 196 S.W. 2d 747; 2 Jones on Mortgages (8th Ed.), sec. 1350; Green v. Spitzer, 343 Mo. 751, 123 S.W. 2d 57; Harrison v. Mobley, 202 S.W. 2d 756; 37 Am. Jur. 225, sec. 846; 37 Am. Jur. 229, sec. 854; 31 C.J.S., p. 44, sec. 35; Souders v. Kitchens, 137 S.W. 2d 501, 345 Mo. 977; Duffley v. McCaskey, 134 S.W. 2d 62, 345 Mo. 550, 126 A.L.R. 853; Farmers Mutual F. & L. Ins. Co. of Andrew County v. Crowley, 190 S.W. 2d 250, 354 Mo. 649; Bullock v. Peoples Bank of Holcomb, 173 S.W. 2d 753, 351 Mo. 587; Annotation, 140 A.L.R. 264, 274, 291. (6) The title reconveyed to Gussie Kort as a straw party for Shankmans inured to Kresge under Shankmans' lease covenants. The title conveyed to Godfrieds was subject to Kresge's prior grant. State ex rel. St. Louis County v. Evans, 346 Mo. 209, 139 S.W. 2d 967; 51 C.J.S., p. 804, sec. 202c; sec. 3497, R.S., 1939; 31 C.J.S., sec. 32, p. 210; Kreppelt v. Greer, 218 S.W. 354; Barada-Ghio Real Estate Co. v. Keleher, Sup., 214 S.W. 961; Johnson v. Johnson, 70 S.W. 241, 170 Mo. 34, 59 L.R.A. 748; 31 C.J.S., sec. 21, pp. 203, 205; 31 C.J.S., sec. 27, p. 208; 31 C.J.S., sec. 10, p. 195; 31 C.J.S., sec. 13, pp. 196, 197, 198; Scott v. Cohen, 115 F. 2d 704, affirming Cone v. Parish, 32 Fed. Supp. 412, certiorari denied Scott v. Cohen, 61 S. Ct. 506, 312 U.S. 703, 85 L. Ed. 1136; Liberal Savings & Loan Assn. v. Frankel Realty Co., 30 N.E. 1012, 1017, 137 Ohio St. 489; Hamlin v. Hawkins, 61 S.W. 2d 348, 332 Mo. 1098; Clark v. Ferguson, 144 S.W. 2d 116, 346 Mo. 933; Jones Store Co. v. Dean, 56 F. 2d 110, certiorari denied Dean v. Jones Store Co., 52 S. Ct. 641, 286 U.S. 559, 76 L. Ed. 1292; Easton v. Salisbury, 62 U.S. 426, 21 How. 426, 16 L. Ed. 181, affirming 23 Mo. 100; White v. Hughes, 88 S.W. 2d 268; Hoffman v. Bigham, 24 S.W. 2d 125, 324 Mo. 516; Clark v. Gauntt, 161 S.W. 2d 270, 138 Tex. 558; Weegans v. Karels, 29 N.E. 2d 248, 347 Ill. 273; Duhig v. Peavey-Moore Lumber Co., 144 S.W. 2d 878, 135 Tex. 503; Shell Oil Co. v. Dye, 135 F. 2d 365; Carter Oil Co. v. Delworth, 120 F. 2d 589; Fordyce v. Rapp, 33 S.W. 57, 131 Mo. 354; Crosby v. Evans, App., 195 S.W. 514; 219 S.W. 948, 281 Mo. 202. (7) The court erred in dismissing Shankmans as parties and in refusing to set aside such dismissal on Kresge's motion for new trial. Jenkins v. John Taylor Dry Goods Co., 352 Mo. 660, 179 S.W. 2d 54; Mutual Drug Co. v. Sewall, 353 Mo. 375, 182 S.W. 2d 575; Ambassador Bldg. Corp. v. St. Louis Ambassador Theatre, 238 Mo. App. 600, 185 S.W. 2d 827; King v. Priest, 206 S.W. 2d 547; Clough v. Securities Reserve Corp., 153 S.W. 2d 93; City of Beaumont v. Moore, 202 S.W. 2d 448; Schneider v. Lipscomb County Nat. Farm Loan Assn., 202 S.W. 2d 832; 61 A.L.R. 12; Barlow v. Scott, 85 S.W. 2d 504; Kresge v. Shankman, 194 S.W. 2d 716. (8) The circuit court erred in refusing to declare that Shankmans breached their lease covenants and were liable to Kresge therefor. Kellog v. Malin, 50 Mo. 496, l.c. 503, and 62 Mo. 429; Dudley v. Waldrop, 183 S.W. 1095; Brand v. Hough, 206 S.W. 425; Jackson v. Sewell, 284 S.W. 197; Lasswell Land & Lumber Co. v. Langdon, 204 S.W. 812; Welch v. U.S., 108 F. 2d 722; Smith v. Nussbaum, 71 S.W. 2d 82; 61 A.L.R. 154; 21 C.J.S. 946, 948, secs. 89, 90, 91; p. 916, sec. 48; p. 972, sec. 110 (c); p. 972, sec. 110 (d); 949, 950, sec. 94; 908, sec. 38; 966, sec. 108 (b), 108 (c); 943, sec. 86; Bates v. Dana, 345 Mo. 311, 133 S.W. 2d 326; 14 Am. Jur. 537, sec. 77; 539, sec. 63; 540, sec. 84; 643, sec. 90; 644, sec. 93, sec. 94; p. 545, sec. 96; 606, sec. 188; 546, sec. 98; 484, sec. 5; 517, sec. 44. (9) The circuit court erred in construing Shankmans' lease to Kresge and erred in refusing to enter a declaratory judgment as prayed in the plaintiff's petition. 51 C.J.S., Landlord and Tenant, p. 828, sec. 221; Ibid., 844, sec. 229 c; Ibid., 848 et seq.; Ibid., p. 863, sec. 235; p. 867, sec. 239; 871, sec. 246. (10) Kresge did not assume payment of any taxes assessed against the land subject to the easement. The easement granted to Kresge was exclusive. The lease is not subject to the construction that a joint or common driveway easement was contemplated or intended. Fulkerson v. Great Lakes Pipe Lines, 75 S.W. 2d 844, 335 Mo. 1058; Magnolia Petroleum Co. v. Thompson, 106 F. 2d 217; Mahnken v. Gillespie, 43 S.W. 2d 797, 329 Mo. 51; Stotsenberger v. Perkins, 58 S.W. 2d 983, 332 Mo. 391; Smith v. Santarelli, 199 S.W. 2d 411. (11) An option to annul and avoid the lease if lessors' title failed or if it did not enable lessors to grant the term demised was a cumulative and not an exclusive remedy. Hiatt Investment Co. v. Buehler, 18 S.W. 2d 219; Kirk v. Welch, 3 N.W. 2d 426, 212 Minn. 300.

Arthur N. Adams and Arthur N. Adams, Jr., for respondents, Mildred Godfried and Gilbert Godfried.

(1) The foreclosure of the Cohen mortgage which was executed in 1925, foreclosed in 1941, cut out all the right, title and interest of the subsequent liens on the property. Plum v. Studebaker Brothers Manufacturing Co., 89 Mo. 162; Roosevelt Hotel Co. v. Williams, 227 Mo. App. 1063, 56 S.W. 2d 801; Green v. Spitzer et al., 343 Mo. 751, 123 S.W. 2d 57; McGill v. Brown, 215 Mo. App. 402, 256 S.W. 510; Barkley v. Picker, 38 Mo. 143; Oakes v. Aldridge, 46 Mo. App. 11. (2) Gussie Kort was in fact Isidor Adler's straw. Benton v. Alcazar Hotel Co., 352 Mo. 836, 180 S.W. 2d 33. (3) Mildred Godfried is an innocent purchaser for value. Machlin v. Allenberg, 100 Mo. 337, 13 S.W. 350; Rector v. Fitzgerald, 50 Fed. l.c. 811; Pierce v. Stinde, 11 Mo. App. 364; Heffernan v. Ragsdale, 199 Mo. 375, 97 S.W. 890; Moberly v. Lotter, 266 Mo. 457, 181 S.W. 991.

Charles E. McCoy and Grant I. Rosenzweig for Shankmans.

(1) Kresge's failure and refusal to make Blond a party was contrary to both law and equity. Nelson v. Brown, 140 Mo. 580; Thornton v. Bank, 71 Mo. 221; Citizens v. Douglas, 178 Mo. App. 664; and many others. (2) No recoverable damage has yet been suffered by Kresge. The only party under the lease liable to Kresge therefor is his landlord. (3) Kresge's failure and refusal to bring Blond into the case is contrary to Statutes and the right of Shankmans to dismissal may be heard separately on motion. New Code, Laws of 1943, secs. 16-18; Rules of Supreme Court, sec 3.06; Missouri Stats., secs. 1131-37. (4) Adler's foreclosure of the Cohen mortgage eliminated, as to the property, all rights granted by Shankmans after the making of that mortgage. Hotel v. Williams, 56 S.W. 2d 801; McGill v. Brown, 215 Mo. App. 402. (5) While the Kresge lease in a general clause warrants possession, there was an additional special clause stating the consequence of a failure in title. Such general clause yields to the special. Carpenter v. Hines, 239 S.W. 593; Broadway v. N.Y., 172 S.W. 2d 851; ...

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