ST. LOUIS — The Missouri Court of Appeals has dismissed Kadean Construction Company's appeal in a complex legal dispute involving the receivership of CannaVer LLC and a multimillion-dollar mechanic's lien on a Hazelwood, Missouri property.
The court ruled that Kadean's appeal, which challenged a trial court's decision limiting its claim to a designated fund, did not meet the legal criteria for a final, appealable judgment, thus lacking the jurisdiction to proceed, according to an opinion filed Feb. 18 in Missouri Court of Appeals-Eastern District.
The dispute centers on work Kadean performed on property owned by Guarantor Real Estate Holding Company (GREHC) and leased to CannaVer LLC.
While CannaVer was under receivership, Kadean and GREHC entered into a consent judgment on April 28, 2023, in a separate case in St. Louis County, awarding Kadean $537,539.07 for the mechanic's lien.
Subsequently, in July 2023, Kadean filed a proof of claim in the CannaVer receivership seeking $586,819.25, which included the principal amount, interest and legal fees.
In October 2023, the trial court approved the sale of the Hazelwood property and other receivership assets, establishing a $1 million allocated fund to address claims related to the property, including Kadean’s.
In December 2023, the successor receiver objected to Kadean's claim, arguing that any payment owed to Kadean should come from the allocated fund. The trial court sustained the objection in part on March 11, 2024, affirming that Kadean's claim must be paid from the reserved $1 million fund.
Kadean appealed this decision, asserting that the trial court's ruling effectively dismissed its claim with prejudice. However, the appellate court disagreed with this interpretation.
The appellate court focused on whether the trial court's March 2024 order constituted a "final, appealable judgment" under Missouri law. For an order to be appealable, it must resolve a distinct legal claim or dispose of all claims by or against a party.
The court concluded that the March order did not meet these criteria. It emphasized that Kadean's claim remains active and could be amended depending on future proceedings related to the mechanic's lien and other claims.
"The trial court's decision does not actually deny Kadean relief nor does it resolve a singular claim in the receivership cause of action," the appellate court's opinion stated.
Additionally, the court highlighted that Kadean retains the right to participate in future proceedings when the successor receiver seeks approval to distribute the allocated funds.
The ruling means Kadean cannot appeal the March 2024 order at this stage. The company must wait until the trial court issues a final decision on the payment of claims from the allocated fund before seeking appellate review.
With the appeal dismissed, the case returns to the trial court, where Kadean and other creditors will continue to navigate the claims process under the Missouri Commercial Receivership Act. Until the court approves a final distribution of assets, Kadean's ability to recover the full amount of its claim remains uncertain.
The appellant is represented by Ronald A. Norwood and Lawrence E. Parres.
The respondent is represented by Emily E. Cantwell.
Attorneys for the parties did not respond to requests for comment.
Missouri Court of Appeals, Eastern District case number: ED112592