Source: https://casetext.com/case/adbar-lc-v-new-beginnings-c-star
Timestamp: 2019-04-19 10:50:56+00:00

Document:
Appeal from the Circuit Court of St. Louis City, Honorable Booker T. Shaw.
Jonathan T. Baum, Clayton, MO, for appellant.
Gary K. Burger, Jr., St. Louis, MO, for respondent.
Adbar, L.C. appeals the judgment in favor of New Beginnings C-Star on Adbar's claim for breach of lease. We reverse in part and affirm in part.
After the permit was reissued, New Beginnings began preparing to move in, including having some construction done on the building. At this same time, Alderman Bosley contacted then State Representative Paula Carter, chairwoman of the appropriations committee responsible for New Beginnings' state funding. Alderman Bosley asked Representative Carter to "pull the funding" for New Beginnings. Alderman Bosley did not get a commitment from Representative Carter, but told her that "if you don't get their funding, you are going to have trouble running" for re-election.
On review of this court-tried case, we will sustain the judgment of the trial court unless there is no substantial evidence to support it, it is against the weight of the evidence, it erroneously declares the law, or it erroneously applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo.banc 1976). We accept the evidence and inferences favorable to the prevailing party and disregard all contrary evidence. Kassebaum v. Kassebaum, 42 S.W.3d 685, 692 (Mo.App.E.D. 2001). We will defer to the factual findings of the trial judge, who is in a superior position to assess credibility; however, we independently evaluate the court's conclusions of law. Id.
The doctrine of commercial frustration grew out of demands of the commercial world to excuse performance under contracts in cases of extreme hardship. Kassebaum, 42 S.W.3d at 699. Under the doctrine of commercial frustration, if the occurrence of an event, not foreseen by the parties and not caused by or under the control of either party, destroys or nearly destroys the value of the performance or the object or purpose of the contract, then the parties are excused from further performance. Id. If, on the other hand, the event was reasonably foreseeable, then the parties should have provided for its occurrence in the contract. Werner v. Ashcraft Bloomquist, Inc., 10 S.W.3d 575, 577 (Mo.App.E.D. 2000). The absence of a provision in the contract providing for such an occurrence indicates an assumption of the risk by the promisor. Id. In determining foreseeability, courts consider the terms of the contract and the circumstances surrounding the formation of the contract. Id. at 577-578. The doctrine of commercial frustration should be limited in its application so as to preserve the certainty of contracts. Id. at 578.
This court has addressed similar intervening events before. In Conlon Group, Inc. v. City of St. Louis, this Court found that structural defects in a 100 year-old building were foreseeable and, despite increased development costs, the agreement with the City's redevelopment authority remained intact. 980 S.W.2d 37, 40-41 (Mo.App.E.D. 1998). In Shop `N Save Warehouse Foods, Inc. v. Soffer, this Court found that a lessor could foresee that its supermarket tenant might bring an action to enforce a radius restriction in the lease to keep him from leasing property to another supermarket chain. 918 S.W.2d 851, 863 (Mo.App.E.D. 1996). The Court noted that, while neither party wanted the eventual result, the doctrine of commercial frustration did not provide a means to avoid a bad result. Id. The possibility that New Beginnings' funding may be threatened was foreseeable. Yet, New Beginnings did not provide for that possibility in the lease. Therefore, New Beginnings assumed the risk that their funding may be threatened and that it might frustrate the purpose of the lease.
In its fourth point on appeal, Adbar alleges that this finding was against the weight of the evidence. "Appellate courts should exercise the power to set aside a decree or judgment on the ground that it is `against the weight of the evidence' with caution and with a firm belief that the decree or judgment is wrong." Murphy, 536 S.W.2d at 32. Conflicts in the evidence are for the trial court to resolve. Trenton Trust Co. v. Western Surety Co., 599 S.W.2d 481, 483 (Mo.banc 1980). The trial court, when sitting as the trier of fact, may believe all, part or none of the testimony of any witness. Id.

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