Pharmacist claims damages due
Schroeder alleges Osage City breached purchase contract

Wayne White
Managing Editor

OSAGE CITY—An Osage City pharmacy has answered the city’s eviction petition with a counterclaim seeking $75,000 in damages, but has agreed to pay monthly rent until the issue is settled in court and eventually vacate its portion of a city-owned health clinic.

In October, the city of Osage City filed a petition in Osage County District Court to evict Schroeder Drugs, Inc., which occupies space in the health clinic building. The petition against Michael Schroeder and Schroeder Drugs requested a court order for past due rent in the amount of $70,740, payment of rent accumulating during the court proceeding, taxes and insurance, and eviction of the business from the property.

According to the city’s petition, the pharmacy has occupied a portion of the city-built medical center since April 14, 2006, and the drugstore’s occupancy is pursuant to an agreement to lease dated Dec. 21, 2004.

Schroeder’s counterclaim, filed in district court Nov. 4, agrees the pharmacy had occupied the building since 2006, but denies the existence of a lease relationship with the city. The counterclaim admits Schroeder Drugs has refused to pay rent, citing the lack of a lease, but also notes no rent was requested or demanded for the years 2006 and 2007.

“Defendant admits that starting in 2008, plaintiff has made demand on defendant Schroeder Drugs for amounts allegedly due under a claimed lease,” the court document reads.

The city’s petition said, “Defendant was notified and advised of the monthly rental amount and terms for leasing the premises, but Defendant has failed and refused to pay any amount for leasing of the premises.” The petition states an amount of $2,358 as the monthly lease payment, and also requests payment of an insurance premium in the amount of $14,610.

Both parties agree Schroeder had expressed a desire to purchase the property, the city claimed no agreement had been made for the sale. In the counterclaim, Schroeder denies “the allegation that there is no agreement for the sale or purchase of the real property.”

In the claim for damages incurred by the pharmacy, Schroeder states a purchase contract exists. As such, “Defendant Schroeder Drugs has suffered damages as a result of the breach by the plaintiff,” the counterclaim says. Also claimed are damages suffered due to the city’s “promises to defendant Schroeder Drugs to sell the real property …”

The pharmacy requests an amount in excess of $75,000 as relief for the damages.

In a request for injunctive relief, Schroeder asks the court to allow until Feb. 15 for the pharmacy to vacate the property, saying prescription customers are not party to the action, and hundreds of prescriptions would be disrupted if the pharmacy is required to vacate before that date.

In a pre-trial order issued Nov. 17, District Court Judge Phillip M. Fromme set the trial for Jan. 22-23, to be held in Coffey County District Court. The judge’s order states the defendants have agreed to move from the city’s property. Fromme also ordered that Schroeder Drugs will pay $2,358 monthly while still in possession of the property.

Osage City Manager Nick Hernandez confirmed last week that Schroeder had paid the rent amount for October and November.

In his order, Fromme said the issues to be considered at the February hearing will be the amount owed by Schroeder for rent and expenses for the period the building was occupied, and the defendants’ counterclaims.