Opinion ID: 1718143
Heading Depth: 2
Heading Rank: 3

Heading: Counterclaim for Unjust Enrichment

Text: Mercantile has counterclaimed against KCA I and KCA III, claiming those partnerships were unjustly enriched by cancellation of the 1984 notes. As previously mentioned, Mercantile had the burden of proving that KCA I and KCA III received a benefit from the cancellation of that note. As a part of the burden of proof on the unjust enrichment count, it was necessary to show that the KCA I and KCA III partnerships were obligated to repay the note. Because the partnership agreement was ambiguous as to whether the 1984 loan was authorized, the question became whether KBDC had apparent authority to obtain the 1984 loan. The burden was on Mercantile to show that KBDC's act was apparently for the carrying on of the partnership in the usual way, or the partnership was not obligated. § 358.090.2. The fact that Mercantile was aware that the 1984 loan proceeds were paid to an entity having no known relationship to KCA I or KCA III and the absence of evidence showing that the proceeds of the 1984 loan were used to carry on any partnership business justified a conclusion that the KCA I and KCA III partnerships were not obligated on the 1984 loan. Therefore, they were not shown to have received a benefit by the cancellation of the 1984 instruments. Thus, no error was committed in denying Mercantile's claim for unjust enrichment.