WILLIAM HARRY DAVIS, APPELLANT,
v.
JOHN M. HATHAWAY, APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Davis sued his attorney Hathaway for legal malpractice arising from representation in the sale of his business to a corporate purchaser. The lower court granted summary judgment for Hathaway, but the appellate court reversed, finding material disputes of fact precluded summary judgment, particularly regarding what legal advice was given and what Davis requested.
Material disputes of fact existed that could not be resolved on summary judgment. Davis testified he asked Hathaway to protect him and that Hathaway assured him he was protected regarding security, while Hathaway testified he advised against closing due to lack of security and recommended personal liability protection but that Davis refused to follow his advice.
[1] Summary judgment is improper when there are direct conflicts in material facts between the testimony of the parties.
[2] A court may not weigh the evidence to reach a summary judgment when there are disputed facts.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the court may not weigh the evidence to reach a summary judgment when there are facts in dispute”
Establishes the standard for summary judgment—that a court cannot resolve conflicting facts at the summary judgment stage
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceDavis retained Hathaway to represent him in selling two sole proprietorships to Steinberg and Zitti. The sale was structured as a purchase by a newly …
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Legal Malpractice cases and more on FLexlaw
RYDER, Judge.
William Davis appeals from the final summary judgment adverse to his claim for legal malpractice, alleging the lower court erred in finding no material issues of disputed fact. We agree and reverse.
Appellant Davis sued appellee Hathaway, alleging legal malpractice arising out of representation for the sale of appellant’s business. Testimony indicated that appellant retained appellee to be his attorney to represent his interest in the sale of two sole proprietorships, Harry Davis Sprinklers and Charlotte Pipe and Irrigation, to prospective buyers Steinberg and Zitti. Steinberg and Zitti formed two Florida corporations, Charlotte Pipe and Irrigation, Inc. and Harry Davis Sprinklers, Inc., and proposed that Harry Davis Sprinklers, Inc. purchase the two sole proprietorships of Davis.
Appellant testified he had asked appellee to protect him. Appellee prepared a contract for purchase and sale of the business which was rejected by the purchasers, who submitted a contract of their own. Appel-lee prepared the promissory note. The note was executed by Harry Davis Sprinklers, Inc. as a corporate entity only. No security agreement or financing statement was executed, although at that time the two corporations had no assets. Appellee did add an addendum which provided that the balance of the promissory note became due and payable if the inventory of Harry Davis Sprinklers, Inc. fell below 80% of its value the date of sale, or if the net worth of the two businesses fell below $15,000.00 in excess of the balance due on the note. Harry Davis Sprinklers, Inc. defaulted on the note and appellant obtained a judgment for $105,000.00. The judgment was uncollecta-ble as the corporate assets had been depleted.
Appellant testified that appellee made no objection to the lack of personal guarantees on the note. Appellant stated that he did not understand the legal significance of a corporate purchaser, and said Hathaway told him he was protected regarding security. Hathaway made no provision for signatures in an individual capacity on the promissory note. Steinberg, the purchaser, testified that Hathaway advised Davis at the closing and it appeared that Davis was following the attorney’s advice.
Appellee testified that appellant approached him only after he had already decided on the terms of the sale. Appellee testified that he told appellant he needed more protection, and did not recommend closing because of the low down payment and lack of security. Appellee testified that appellant did not follow his advice, because he was anxious to leave the pressures of the business. Appellee discussed the need for personal liability, and testified that the buyers under no circumstances would have signed in their individual capacities. The purchasers, Steinberg and Zitti, testified that appellee never requested them to personally sign the note.
The court granted summary judgment on appellee Hathaway’s motion, which alleged that appellant did not request him to protect his interest, that appellant knew the purchaser would not personally sign guarantees for notes, that appellee did not draft the contract, and that appellant failed to protect his security interest.
Summary judgment may be granted when there is no material issue of disputed fact. Florida Rule of Civil Procedure 1.510(c). However, the court may not weigh the evidence to reach a summary judgment when there are facts in dispute. See, e.g., Morgan v. Growers Marketing Service, Inc., 370 So. 2d 74 (Fla. 2d DCA 1979); Ritchey v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 361 So. 2d 438 (Fla. 2d DCA 1978). Below, a dispute was evident between the testimony of the parties as to what services appellant requested and what advice appellee rendered. Appellee testified that he disapproved of the contract and told appellant that he needed more protection, but appellant did not follow his advice. Appellant testified that he asked appellee Hathaway to protect him, and appellee made no objection to the lack of personal guarantees. Appellant testified that appel-lee told him he was protected regarding security. These direct conflicts in material fact could not be resolved by the court on summary judgment. The judgment below is REVERSED and the ease REMANDED for further proceedings.
GRIMES, A. C. J., and SCHOONOVER, J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Harris v. State, 370 So. 2d 74 (Fla. 2d DCA 1979)
- Ritchey v. Merrill Lynch, 361 So. 2d 438 (Fla. 2d DCA 1978)