KANSAS CITY — The Missouri Court of Appeals Western District has affirmed a $5.18 million judgment in favor of Racket Merchandise Company in a legal battle involving damage to its historic downtown Kansas City warehouse during the demolition of adjacent properties.
The court upheld a lower court’s ruling that 718 Grand LLC, Power & Light Properties LLC and U.S. Property Inc. — three entities owned and operated by the same individual — were liable for nuisance, ejectment and negligence stemming from demolition activities that caused extensive damage and flooding to the Racket Building at 713 Walnut Street. The judgment included $1.33 million in compensatory damages and $3.85 million in punitive damages.
The dispute dates back to 2018, when demolition began on the adjacent 718 Grand Boulevard and 110 East 8th Street properties.
Racket, a family-owned business incorporated in 1891, has operated for more than 80 years in its current 35,000-square-foot building.
Its basement, once designated as a civil defense shelter, had been a vital and secure part of its operations, providing crucial storage space for its commercial airline supply inventory.
Problems began shortly after demolition commenced.
Debris from the partially razed garage next door — including a steel beam, steel-framed window, and a large mass of bricks — was pushed onto Racket’s roof, causing significant damage.
Despite netting being placed on three sides of the garage to contain debris, no such protection was placed on the side facing the Racket Building.
In addition, nearly 400 truckloads of heavy clay were dumped on the demolition site to grade the lot.
This formed a sloped hill directing rainwater toward the Racket Building, resulting in repeated basement flooding that destroyed valuable inventory and equipment and rendered parts of the building unusable due to mold.
Racket documented the damage with photos and emails to the defendants starting in June 2018, requesting remedial action. The defendants’ response consisted only of placing sandbags, which failed to stop the flooding.
Complicating matters further, the demolition uncovered that support pillars from the 718 Grand garage had been embedded into the Racket Building’s structure.
These pillars, and the non-load-bearing nature of Racket’s east wall, prevented completion of the demolition and exacerbated the structural vulnerability of the warehouse. Proposals to remove the pillars using more delicate methods were not accepted by the defendants, who also failed to provide requested engineering guidance.
The clay hill remained in place, causing continued water intrusions over several years.
In 2019, Racket filed suit, and by 2021, amended its complaint to include claims of nuisance, ejectment, trespass, and negligence. Other parties involved in the demolition — NGC Group Inc., NG Consulting LLC, CMJ Enterprises and contractor Double D Inc., which is doing business as Dale Brothers — settled with Racket mid-trial.
The remaining claims against the Defendants proceeded, and in 2023, a jury awarded Racket significant damages.
The judgment included $750,000 for nuisance, $400,000 for ejectment and $180,000 for negligence, in addition to substantial punitive damages against all three defendant companies.
Afterward, the trial court entered amended judgments, reducing the overall award by $150,000 due to the settlements and ordering post-judgment interest.
The court also granted partial injunctive relief, directing the defendants to install erosion control measures, such as riprap, to mitigate further water flow toward Racket’s property.
The defendants appealed, arguing that the trial court erred in denying their motions for directed verdict on the ejectment claim and in issuing jury instructions on damages and punitive damages.
However, the appellate court ruled that these objections were not properly preserved at trial. Specifically, the court noted that the defendants did not object to the jury instructions during trial or request a plain error review on appeal.
As such, the appellate court declined to consider the claims and affirmed the trial court’s decision in full.
Missouri Court of Appeals Western District case number: WD86753