Clouse v. Myers

Clouse (plaintiff) paid Patricia and Jerry Myers (defendants) $7,500 (with another $7,500 due later) under a contract labeled an "Employment/Management Contract" to manage their tavern, the Green Door, in exchange for a share of profits; the tavern's liquor license was solely in Patricia's name, and Clouse admitted at trial that he knew this and that the arrangement was actually an unlicensed partnership disguised as employment specifically so he could operate under Patricia's license. When Missouri liquor regulators discovered the arrangement and required a new license listing all partners, Patricia instead relinquished the license; Clouse sued for misrepresentation and a refund, and the Myerses counterclaimed for the remaining $7,500. The trial court ruled for Clouse on both his claim and the counterclaim, and the Myerses appealed.