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Contracts Keyed to Frier
Clouse v. Myers
Facts
Patricia Myers (defendant) operated the Green Door tavern. J. Todd Clouse (plaintiff) entered into an agreement with Patricia and her husband, Jerry Myers, titled “Employment/Management Contract.” The agreement also provided that if the Myerses caused the loss of the tavern’s liquor license, they would refund any money paid by Clouse. The Missouri Division of Liquor Control notified Patricia that she would need to apply for a license in the names of all of the business’s partners. Patricia instead chose to relinquish the liquor license. Clouse sued the Myerses for misrepresentation and for a refund of the $7,500 he had paid them. The Myerses counterclaimed for the $7,500 still owed to them under the contract. At trial, Clouse testified that he knew the Green Door’s license was in Patricia’s sole name and that the contract was, in fact, a partnership agreement, not an employment contract. Clouse also testified that the reason for labeling the contract an “Employment/Management Contract” was to allow him to operate the tavern under Patricia’s license. The trial court entered a judgment for Clouse on his claims for $7,500 and a judgment against the Myerses on their counterclaim. The Myerses appealed.
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