Supreme Court of Missouri / Jul 3, 2018
Kohner Properties, Inc., Respondent, vs. Latasha Johnson, Appellant.
Latasha Johnson withheld rent from Kohner Properties due to a water leak and ceiling collapse, asserting a breach of the implied warranty of habitability as a defense and counterclaim. The circuit court barred her defense because she failed to deposit unpaid rent in custodia legis, relying on King v. Moorehead. The Missouri Supreme Court affirmed the circuit court's judgment, clarifying that while King's pronouncement on the in custodia legis procedure was dicta, its long-standing application meant the circuit court did not err in relying on it. The Court held that, going forward, circuit courts have discretion to implement such a protective procedure on a case-by-case basis.