Opinion ID: 2974907
Heading Depth: 4
Heading Rank: 2

Heading: The State Court Actions

Text: Contemporaneously with his federal action, Bagsby sought a dissolution of the alleged partnership between himself and Gehres, claimed unjust enrichment and detrimental reliance against her, and sought restitution and an accounting in the Missouri Circuit Court. After a trial on Bagsby’s dissolution of partnership, unjust enrichment and detrimental reliance claims, the Missouri Circuit Court issued Findings of Fact and Conclusions of Law in Bagsby’s favor on July 24, 2001, and entered a judgment against Gehres on those claims. The Missouri Circuit Court also found that Bagsby satisfied the elements of an equitable tracing of $22,000.00 of the disputed funds that Gehres allegedly paid to Schnelz as legal fees. Bagsby contends that this judgment, in which the Missouri Circuit Court found that Gehres was not legally entitled to any of the funds, conclusively establishes his ownership of the funds. This judgment is the basis of his declaratory relief request as to Gehres, the Gehres Family and Schnelz. 6 Gehres has asserted counterclaims against Bagsby for assault and battery, intentional infliction of emotional distress, negligent infliction of emotional distress, defamation, abuse of process, intentional interference with contractual relations, statutory slander of title, and slander of title at common law. 5 As will be discussed, infra, the Missouri Court of Appeals ultimately vacated the Missouri Circuit Court’s judgment. Bagsby also brought contempt proceedings against Gehres in the Family Division of the Missouri Circuit Court for allegedly violating the terms of the April 1999 divorce decree because Gehres claimed she was entitled to the disputed funds for her work on the Kilbury case and for helping Bagsby build his Missouri law practice. After a bench trial, the Missouri Circuit Court found in Gehres’s favor. The court explained that the Kilbury fees were indeed Bagsby’s separate property under the decree, but after the divorce, Bagsby could do anything he wanted with the money, including transferring it to Gehres. As such, she did not violate the divorce decree in taking the money, and neither party’s claim to the money was rooted in the divorce decree.