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A & L Underground, Inc. v. Leigh Construction, Inc.

Citations: 162 S.W.3d 509; 2005 Mo. App. LEXIS 753; 2005 WL 1149791Docket: WD 64285

Court: Missouri Court of Appeals; May 17, 2005; Missouri; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Garney Companies, Inc. against a circuit court ruling in a garnishment action initiated by A. L Underground, Inc. The lower court had ordered Garney to pay $120,284.10, despite Garney's claim that it had no financial obligation to A. L Underground's debtor, Leigh Construction, Inc., as its contracts were with a different entity, Leigh Construction of North Carolina, which had not fulfilled conditions precedent for payment. A. L Underground argued that the North Carolina entity was an alter ego of Leigh Construction, Inc., but the court found insufficient evidence for this claim. The appellate court held that the circuit court failed to address whether Leigh Construction met the contract's conditions, thus deciding that A. L Underground, standing in the debtor's position, could not recover from Garney. Claims for quantum meruit and money had and received under Florida law were also rejected due to the existence of an express contract. The appellate court further ordered A. L Underground to indemnify Garney for costs and attorney fees, remanding the case for Garney to present the evidence of these expenses.

Legal Issues Addressed

Alter Ego Doctrine

Application: A. L Underground's argument that the North Carolina entity was an alter ego of Leigh Construction, Inc. was rejected due to a lack of evidence.

Reasoning: A. L Underground argued that the North Carolina entity was an alter ego of Leigh Construction, Inc. However, the court found insufficient evidence to support A. L Underground's claims.

Garnishment Action

Application: The appellate court found that the circuit court erred in its judgment in favor of A. L Underground because there was insufficient evidence that Garney owed money to Leigh Construction, Inc.

Reasoning: The appellate court determined that the circuit court erred by not addressing whether Leigh Construction had a right to payment due to its failure to satisfy the contract's conditions.

Indemnification for Costs and Attorney Fees

Application: The appellate court required A. L Underground to indemnify Garney for costs and attorney fees incurred in the garnishment action, and remanded the case for Garney to present evidence of these costs.

Reasoning: Lastly, the appellate court mandated that A. L Underground indemnify Garney for its costs and attorney fees incurred during the garnishment action, referencing Rule 90.12(b), and remanded the case for Garney to present evidence of these costs.

Quantum Meruit and Money Had and Received

Application: Claims based on quantum meruit and money had and received were dismissed because an express contract existed, rendering these doctrines inapplicable.

Reasoning: A. L Underground's claims under Florida law for quantum meruit and money had and received were rejected because these doctrines were inapplicable given the existence of an express contract.