ELEANOR B. ROBINSON, APPELLANT,
v.
FERNANDA PETERSON, APPELLEE
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A lessor is entitled to prejudgment interest on unpaid rent installments from the date they become due, as such claims are liquidated.
[1] A lessor is entitled to prejudgment interest on unpaid rent from the date each installment becomes due, pursuant to statute.
[2] A claim for unpaid rent, even if characterized as "general damages," is a liquidated claim for purposes of prejudgment interest when the amount is fixed by contract.
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Join FLexlaw to unlock all legal intelligenceA lessee abandoned leased premises and failed to pay rent. The lessor retook possession for the lessee's account and sued for unpaid rent up to the sa…
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DANAHY, Judge.
Both the lessor and the lessee appeal from a final judgment for the lessor in a suit by the lessor for breach of the lease agreement. The lessor’s complaint is that the trial judge failed to include prejudgment interest in the amount which he found due the lessor by reason of the breach. We agree with the lessor that this was error and reverse on that point. We have considered the points raised by the lessee and find them to be without merit.
The occurrences giving rise to this suit are not disputed. The lessee abandoned the leased premises during the term of the lease and failed to pay the rent stipulated to be paid in the lease agree ment. The lessor announced her election to retake possession of the leased premises for the account of the lessee, which was an option available to her. Coast Federal Savings and Loan Association v. DeLoach, 362 So. 2d 982 (Fla. 2d DCA 1978). In such a case the liability of the lessee is the difference between the rentals stipulated to be paid and what, in good faith, the lessor is able to recover from a reletting. Coast Federal Savings and Loan Association v. DeLoach, supra.
The lessor eventually was able to sell the leased premises and brought this suit to recover the amount of unpaid rent under the lease agreement up to the date of the sale. She alleged that she made a good faith effort to relet the premises for the benefit of the lessee from the date of the breach to the date of the sale, but was unsuccessful through no fault of her own. The lessee vigorously challenged that allegation, but the trial judge found in favor of the lessor. We find no error in that regard.
In the final judgment the lessor was awarded the total amount of the installments of rent due under the lease agreement up to the date of the sale of the leased premises, less rent paid by the lessee and less an agreed upon credit to the lessee. No prejudgment interest was allowed.
The question whether a lessor is entitled to interest on unpaid rent seems to be clearly answered by Section 83.06(2), Florida Statutes (1977), which provides:
All contracts for rent, verbal or in writing, shall bear interest from the time the rent becomes due, any law, usage or custom to the contrary notwithstanding.
Neither party mentioned this statute to us, although it embodies a provision which has been the law in Florida unchanged for 150 years. Acts of the Legislative Council of the Territory of Florida, Seventh Session 1828, p. 202 (Section 6 of An Act to Provide for the Collection of Rents, approved November 21, 1828). We have not been told why Section 83.06(2) does not apply here.
The lessee argues that this is an action for “general damages” (presumably, then, not an action for rent) and it is improper to add prejudgment interest to a verdict for damages. The lessee supports that argument by juxtaposing the words “general damages” as used in Williams v. Aeroland Oil Co., 155 Fla. 114, 20 So. 2d 346 (1944), and the word “damages” as used in Vacation Prizes Inc. v. City Nat. Bank of Miami Beach, 227 So. 2d 352 (Fla. 2d DCA 1969). These decisions, however, do not combine to produce the result urged by the lessee.
In Williams v. Aeroland Oil Co., supra, the supreme court characterized the lessor’s right of recovery, where the lessor elects to retake possession of the leased premises for the account of the lessee, as the right to hold the lessee liable “in general damages” for the difference between the rentals stipulated to be paid and what, in good faith, the lessor is able to recover from a reletting. In Vacation Prizes, Inc. v. City Nat. Bank of Miami Beach, supra, this court held that it is error to add prejudgment interest to a verdict for damages; but in so holding, the court defined the word “damages” to mean an unliquidated claim. The rule in Florida is that prejudgment interest is a proper element of damages when a claim is liquidated, but not where a claim is unliquidated. Town of Longboat Key v. Widell, 362 So. 2d 719 (Fla. 2d DCA 1978). The decision in the Vacation Prizes case is completely consistent with that rule.
Therefore, assuming for purposes of discussion that the lessor’s entitlement to prejudgment interest in this case is not established by Section 83.06(2), the question is simply whether the lessor’s claim was liquidated. If so, prejudgment interest must be allowed under the general rule established by case law.
When an amount due is fixed by contract, the claim is liquidated. Kennedy v. George Cully Real Estate, Inc., 336 So. 2d 484 (Fla. 3d DCA 1976). There can be no doubt that a lessor’s claim for an amount measured by the amount of unpaid rent is a claim for a fixed and determinable amount and, therefore, is a liquidated claim whether or not the lessor’s award is called “general damages.” Had the lessee prevailed on the question whether the lessor did in fact use good efforts to relet, the lessor’s right of recovery would have been entirely defeated. Weeks v. International Trust Co., 125 F. 370 (1st Cir. 1903), error dismissed, 193 U.S. 667, 24 S.Ct. 853, 48 L.Ed. 839 (1904); Kanter, v. Safran, 99 So. 2d 706 (Fla.1958). But the fact that there is a dispute as to whether a debt is actually due has no bearing on the question of entitlement to prejudgment interest. The rule is that if it is finally determined that the debt is due, the person to whom it is due is entitled not only to the payment of the principal of the debt but. to interest at the lawful rate from the due date thereof. Parker v. Brinson Construction Company, 78 So. 2d 873 (Fla.1955).
The final judgment in this case is reversed with instructions to enter an amended judgment allowing interest on each installment of rent included in the award to the lessor, computed from the date that the installment fell due.
REVERSED.
GRIMES, C. J., and RYDER, J., concur.
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Holiday Gulf Builders, Inc. v. Tahitian Gardens Condo., Inc., 443 So. 2d 143 (Fla. 2d DCA 1983)…nts as well as any additional special assessments. The amount of damages that Holiday owed Tahitian Gardens for assessments on the thirty-six unbuilt units would depend upon variables not set forth in the pleaded agreement. See Robinson v. Peterson, 375 So. 2d 294 (Fla. 2d DCA 1979). Holiday is therefore entitled to a jury trial on the issue of damages. Likewise, Holiday is entitled to a jury trial on the issue of attorney’s fees. In addition to establishing a procedure for assessments, the declaration of co…
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Vanech v. Hartsfield & SON, Inc., 444 So. 2d 431 (Fla. 2d DCA 1983)…firm the award of prejudgment interest as proper in a suit for payment of a debt due under a contract. See Parker v. Brinson Construction Co., 78 So. 2d 873 (Fla.1955); Beckerman v. Greenbaum, 439 So. 2d 233 (Fla. 2d DCA 1983); Robinson v. Peterson, 375 So. 2d 294 (Fla. 2d DCA 1979); Peter Marich & Associates, Inc. v. Powell, 365 So. 2d 754 (Fla. 2d DCA 1978); Town of Longboat Key v. Carl E. Widell & Son, 362 So. 2d 719 (Fla. 2d DCA 1978); Vacation Prizes, Inc. v. City National Bank of Miami Beach, 227 So. 2d…
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Previewing 3 of 8 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Parker v. Brinson Constr. Co. & Fla. Indus. Comm'n, 78 So. 2d 873 (Fla. 1955)
- Williams v. Aeroland OIL Co., 155 Fla. 114 (Fla. 1944)
- Vacation Prizes, Inc. v. City Nat'l Bank OF Miami Beach, 227 So. 2d 352 (Fla. 2d DCA 1969)
- Town OF Longboat KEY v. Carl E. Widell & SON, 362 So. 2d 719 (Fla. 2d DCA 1978)
- Coast Fed. Sav. & Loan Ass'n v. Guion T. DeLOACH, 362 So. 2d 982 (Fla. 2d DCA 1978)
- Brooker v. State, 362 So. 2d 719 (Fla. 2d DCA 1978)
- Kanter v. Safran, 99 So. 2d 706 (Fla. 1958)
- Kennedy v. George Cully Real Est., Inc., 336 So. 2d 484 (Fla. 3d DCA 1976)
- Ex parte. In the Matter of Arthur P. Schofield, 193 U.S. 667 (U.S. 1904)
- Owensboro Water Works Co. of Owensboro v. City of Owensboro, 193 U.S. 667 (U.S. 1904)