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Central Missouri Electric Cooperative v. Wayne3/21/2000
This slip opinion is subject to revision and may not reflect the final opinion adopted by the Court.
Appeal From: Circuit Court of Benton County, Hon. Theodore B. Scott
Opinion Vote: REVERSED AND REMANDED.
Opinion:
FACTS
This appeal stems from both a summary judgment in favor of the respondent, Central Missouri Electric Cooperative (CMEC), on its Petition for Damages for electric power supplied to the Balkes, and a directed verdict in favor of CMEC on Appellants', Richard and Ruth Balke's, counterclaim for damages sustained due to CMEC's wrongful termination of electrical power.
CMEC is a rural electric cooperative. It serves farms, residences, schools, and industries in rural, central Missouri. Richard and Ruth Balke operate a dairy farm in Cole Camp. Richard, age forty-nine, has lived on the farm his entire life. Balke lives there with his wife, three of his four children, and his mother, who has lived on the family farm since 1930. CMEC had supplied electrical power to the Balke farm since 1971.
In 1982, CMEC replaced an existing transformer on the property with a larger transformer because of the expansion of the Balke dairy operation. After the installation, the Balkes began experiencing over-voltage problems, which eventually damaged electrical equipment on their farm. As a result, the Balkes' dairy herd was damaged due to mastitis.
After several years of complaints, on March 2, 1991, CMEC discovered that the transformer, which was installed in November 1982, was transmitting over-voltages. After this discovery, CMEC told Mr. Balke, "We're gonna take that transformer off and we're gonna send it down to Arkansas and get it tested out. If it tests out defective, we're gonna pay you for your losses." Subsequently, it was removed and the transformer was found to be defective.
Months passed without the Balkes' claims resulting from the defective transformer being paid. In January 1992, the Balkes received an unusually low electric bill of only $24.00. When they inquired about the bill to CMEC, they were told that they would not be required to pay any electrical bill until CMEC investigated the low bill issue. Following that conversation, the Balkes did not pay any electric bills nor did they read their meter.
However, on May 27, 1992, CMEC billed the Balkes for service for February through June 1992. In June, 1992, Mr. Balke sent a return letter expressing his dissatisfaction and explaining the financial difficulties the family was experiencing due to the electrical problems. Mr. Balke also sent a statement of his own for the damages caused since 1982 that had never been paid by CMEC.
Upon receipt of Mr. Balkes' letter, CMEC requested by phone that the Balkes meet with the co-op's general manager. Mr. and Mrs. Balke went to CMEC and attended a meeting sometime between June 1 and June 11, 1992. At that time, the general manager stated that the Balkes were good people, CMEC felt bad, and they owed the Balkes damages and should have taken care of the situation a long time ago. Further, the general manager requested that the Balkes talk to CMEC's lawyer, Adam Fischer, to make matters "more legal."
Accordingly, Mr. and Mrs. Balke went to Adam Fischer's office in Sedalia. Mr. Fischer informed the Balkes that CMEC was going to see that the Balkes got paid for their damages, but that it could not be done that day. He further stated that "we can just waiver your power bill and then when you get paid, you can pay us." Fischer assured Balke that it was a deal, and the two men shook hands on the agreement.
From that day on, and for over the next
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