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UNCW BLA 361 - The Euclid Plaza cases

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Roberts brothers rev up $50 million CWE redevelopmentSt. Louis Business Journal - May 5, 2006by Lisa R. BrownOpinionMissouri Court of AppealsEastern DistrictCase Style: State of Missouri ex rel. Euclid Plaza Associates, L.L.C., Relator, v. Honorable David C. Mason, Circuit Court Judge Presiding in Division No. 31 of the Circuit Court of the City of St. Louis, Missouri, Respondent.Case Number: ED80801Handdown Date: 05/14/2002Appeal From: Original Proceeding in ProhibitionCounsel for Appellant: Ryan S. ShaughnessyCounsel for Respondent: Kenneth D. GoinsOpinion Summary: Euclid Plaza Associates, L.L.C., filed a petition for a writ of prohibition seeking to prohibit the enforcement of a contempt order entered by respondent, the Honorable David C. Mason. PRELIMINARY ORDER MADE ABSOLUTE.Division Six holds: Judge Mason exceeded his jurisdiction in finding Euclid Plaza in contempt for violating a stay order when Euclid Plaza did not violate any specific term in the stay order.Citation: Opinion Author: Robert G. Dowd, Jr., Presiding JudgeOpinion Vote: PRELIMINARY ORDER MADE ABSOLUTE. Ahrens and Draper, JJ., concur.Opinion:Relator, Euclid Plaza Associates, L.L.C. (Euclid Plaza), filed a petition for a writ of prohibition seeking to prohibit the enforcement of a contempt order entered by Respondent, the Honorable David C. Mason. Respondent filed suggestions in opposition. We issued a preliminary order in prohibition. Thereafter, Respondent filed an answer. We dispense with further briefing in the interest of justice. Rule 84.24(j). The preliminary order is now made absolute.In July 1998, Euclid Plaza purchased the Euclid Plaza Office Building at a tax sale. In August1998, the Institute, L.L.C. and the African American Law Firm L.L.C. (collectively referred to asthe AALF) entered into a long-term lease with the prior owner of the office building. In September 1998, Euclid Plaza had the tax sale confirmed and received a sheriff's deed.Subsequent to the confirmation of the tax sale, a dispute arose between Euclid Plaza and the AALF regarding the validity of the long-term lease executed by the AALF. Euclid Plaza asserted that the long-term lease was extinguished by the tax sale and the AALF asserted that the lease was valid and binding on Euclid Plaza. Acknowledging the dispute, Euclid Plaza and the AALF attempted to negotiate the terms and conditions of a new lease. The negotiations reached an impasse after eight months. In September or October 1999, Euclid Plaza provided written notice to the AALF that the monthly rent would increase from $1,500 to $2,033 effective November 1, 1999.On November 1, 1999, and each month thereafter, the AALF tendered $1,500 and refused to pay the increase in rent. Thereafter, Euclid Plaza filed suit for collection of past due rent and for possession of the leased premises from the AALF. The AALF filed a counterclaim and a second lawsuit for declaratory judgment. The matters were consolidated and tried before the Honorable David C. Mason. On July 27, 2000, Judge Mason entered a judgment in favor of Euclid Plaza and against the AALF finding that the AALF occupied the leased premises under an oral, month-to-month tenancy. Judge Mason awarded Euclid Plaza past due rent and possession of the leased premises. Judge Mason, however, stayed execution of the judgment for possession conditioned upon the payment of the past due rent and upon payment of $2.033.33 each month thereafter pending an appeal.In September 2000, the AALF filed its notice of appeal and made the necessary payments into the court registry to stay execution of the judgment. On November 15, 2000, the AALF filed an amended motion to modify the amount of the supersedeas bond. On November 22 and again on November 28, 2000, Euclid Plaza served the AALF with written notice that it intended to increase the monthly rent from $2,033 to $3,500 effective January 1, 2001. On December 19, 2000, the AALF filed a motion to maintain the supersedeas bond. On January 29, 2001, this courtdenied the motion as "unnecessary" stating "the judgment of July 27, 2000 setting forth the termsof the stay remain in effect." On February 1, 2001, Euclid Plaza filed a motion to increase the amount of the supersedeas bond from $2,033 to $3,500, which was denied on February 5, 2001.On September 18, 2001, this court issued its opinion affirming Judge Mason's judgment in Euclid Plaza Associates, L.L.C. v. African American Law Firm, L.L.C., 55 S.W.3d 446 (Mo. App. E.D. 2001), and subsequently issued its mandate affirming the judgment. On or about September 4, 2001, before the issuance of the appellate opinion, the AALF voluntarily vacated and surrendered possession of the leased premises.In October 2001, Euclid Plaza filed a new suit to collect the past due rent accruing from January 2001 through September 2001. The AALF filed a motion to dismiss and/or for summary judgment alleging that the claim was barred by the doctrine of res judicata and by the posting of the supersedeas bond. The Honorable Michael Mullen, Associate Circuit Judge, denied the motion to dismiss and/or for summary judgment. Thereafter, the AALF filed a petition for writ ofprohibition, which was denied on January 18, 2002. The cause was assigned to the Honorable Edward Sweeney, Associate Circuit Judge, presiding in Division No. 29 of the Circuit Court of the City of St. Louis, Missouri.On January 24, 2002, the AALF filed its motion for civil contempt with Judge Mason requesting that Judge Mason find Euclid Plaza in contempt of court for violating the terms and conditions ofthe July 27, 2000 judgment and the order of the Missouri Court of Appeals Eastern District byincreasing the amount of rent set by the judgment from $2,033 to $3,500. Judge Mason directed Euclid Plaza to appear and show cause why they should not be held in contempt. On February 7, 2002, Judge Mason conducted a hearing on the show cause order and found Euclid Plaza in contempt. In granting the AALF's motion for contempt, Judge Mason stated in his written judgment, "[t]his Court finds [Euclid Plaza] to be in contempt of this Court and [Euclid Plaza] is HEREBY ORDERED, to dismiss its action for unpaid rent against [the AALF]."On February 25, 2002, Euclid Plaza filed a petition for a writ of prohibition asking this court to prohibit Respondent, Judge Mason, from enforcing his contempt order directing Euclid Plaza to dismiss its action pending in front of Judge Sweeney in Division No. 29 of the circuit


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UNCW BLA 361 - The Euclid Plaza cases

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