NORMA JURADO GONZALEZ, APPELLANT,
v.
TRAVELERS INDEMNITY COMPANY OF RHODE ISLAND, APPELLEE
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Gonzalez was injured by an uninsured motorist and settled a personal injury protection claim with Travelers, executing a release. Travelers sought a declaration that the release barred Gonzalez's subsequent uninsured motorist benefits claim, and the trial court granted summary judgment in Travelers' favor. The appellate court reversed, holding that genuine issues of material fact existed regarding whether the release expressed the parties' intent.
The court held that genuine issues of material fact existed as to whether the release expressed the parties' intent to release the uninsured motorist claim, and therefore summary judgment was improper. The case was reversed and remanded for trial on Gonzalez's counterclaim for reformation of the release.
[1] A release may be reformed in equity if it does not carry out or violates the intent of the parties.
[2] Summary judgment is inappropriate when genuine issues of material fact exist regarding the parties' intent concerning a release.
Previewing 2 of 5 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“Assuming, arguendo, that the release is clear and unambiguous, that finding is not dispositive of Gonzalez's counterclaim for reformation which alleged, in essence, that the release did not express the intent of the parties that the claim for uninsured motorist benefits was not to be released.”
Establishes that even if the release language were clear, summary judgment was improper because disputed factual issues existed regarding whether the release expressed the parties' actual intent.
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Join FLexlaw to unlock all legal intelligenceGonzalez held an auto insurance policy with Travelers providing both personal injury protection (P.I.P.) and uninsured motorist benefits. After being …
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DANIEL S. PEARSON, Judge.
Norma Gonzalez was insured under an automobile insurance policy issued by The Travelers Indemnity Company of Rhode Island. The policy, inter alia, provided Gonzalez with personal injury protection and uninsured motorist benefits. Gonzalez was injured in an automobile accident caused by an uninsured motorist and presented a P.I.P. claim to Travelers. When Travelers denied her claim, Gonzalez sued in the Circuit Court in and for Dade County, Florida, Case No. 76-35110. Ultimately, Gonzalez accepted Travelers’ offer of judgment of $2,447.04, was paid, and executed a release. Thereafter, Gonzalez filed a demand for arbitration for uninsured motorist benefits. Travelers then brought an action seeking a declaration that Gonzalez’s claim for uninsured motorist benefits was barred by the release she signed.
The trial court, determining that the release clearly and unambiguously prevented Gonzalez from making any claim for uninsured motorist benefits, entered a summary final judgment in favor of Travelers. Assuming, arguendo, that the release is clear and unambiguous,1 that finding is not dispositive of Gonzalez’s counterclaim for reformation which alleged, in essence, that the release did not express the intent of the parties that the claim for uninsured motorist benefits was not to be released. Gonzalez properly points out that the evidence concerning the intent of the parties was not undisputed and that, therefore, Travelers was not entitled to summary judgment on Gonzalez’s counterclaim.
The record indeed reflects that (1) Travelers’ claims manager informed his home office, “. . . we settled the P.I.P. portion of the claim by paying the additional benefits due .. . (2) when the uninsured motorist claim was filed, Travelers’ claims manager wrote to Travelers’ counsel, “you previously handled P.I.P. suit — if you need , additional information please advise. Why don’t you give me a call and we can discuss what discovery is necessary and what discovery was done on P.I.P. suit”; (3) the cover letter transmitting the settlement drafts to Gonzalez stated, inter alia, “[t]hese drafts constitute full and complete settlement of your claim for Personal Injury Protection Benefits”; (4) Travelers’ attorney could not recall any conversation in which Gonzalez’s attorney told him that the lawsuit would settle all of Gonzalez’s claims and could not recall any understanding with Gonzalez’s attorney with respect to the uninsured motorist claim. It is clear where an agreement does not carry out the intent of the parties or violates such intent, equity will reform the contract. See Vasquez v. Simms, 75 So. 2d 783 (Fla.1954); Royal Insurance Company Limited v. Smith, 158 Fla. 472, 29 So. 2d 244 (1947); Poland v. Phillips, 371 So. 2d 1053 (Fla. 3d DCA 1979); Alexander v. Kirkham, 365 So. 2d 1038 (Fla. 3d DCA 1979); Napoli v. Liberty Mutual Insurance Company, 364 So. 2d 878 (Fla. 4th DCA 1978); Florida Cranes, Inc. v. Florida East Coast Properties, Inc., 324 So. 2d 721 (Fla. 3d DCA 1976); Niagara Fire Insurance Company v. Allied Electrical Company, 319 So. 2d 594 (Fla. 3d DCA 1975); Hanover Insurance Company v. Publix Market, Inc., 198 So. 2d 346 (Fla. 4th DCA 1967); Ormsby v. Ginolfi, 107 So. 2d 272 (Fla. 3d DCA 1959); accord, Palilla v. St. Paul Fire and Marine Insurance Company, 322 So. 2d 46 (Fla. 1st DCA 1975); see also Meyer v. Aetna Casualty & Surety Company, 360 So. 2d 462 (Fla. 3d DCA 1978); Urbaine Fire Insurance Company of Paris, France v. Combs, 108 Fla. 262, 145 So. 585 (1933).
Accordingly, holding that there existed genuine issues of material fact as to whether the release expressed the intent of the parties, we reverse the judgment of the trial court with directions that a trial on Gonzalez’s claim for reformation of the release be held.
Reversed and remanded with directions.
. The pertinent language of the release in question states:
“This Release covers any and all claims for personal injuries, known or unknown, past and future; mental and physical pain and suffering, loss of earnings or earning capacity; ... any and all claims which have arisen or may arise as a result of the described acts which is the subject matter of the suit pending in the Circuit Court in and for Dade County, Florida, Case No. 76-35110.”
We need not decide whether the trial court’s view that the release is clear and unambiguous is correct. While the document purports to release “any and all claims for personal injuries, known or unknown, past and future,” it is arguable that that seemingly all-inclusive language is later qualified by more restrictive language referring to “any and all claims which have arisen or may arise as a result of the described acts which is the subject matter of the suit pending in the Circuit Court in and for Dade County, Florida, Case No. 76-35110.” However, the subject matter of the suit was a claim for P.I.P. benefits, not a claim for uninsured motorist benefits. While an argument can certainly be made that the “described acts” are the subject matter of the suit, the use of the singular, i.e., “which is the subject matter,” can be equally, if not more plausibly read to qualify “any claim.” The term “subject matter” itself is imprecise. Switow v. Sher, 136 Fla. 284, 186 So. 519 (1939); Lovett v. Lovett, 93 Fla. 611, 112 So. 768 (1927).
Moreover, it is undisputed that Travelers authored the release, and therefore, the language would be construed against it.
Cases With Similar Vibessemantic neighbors from the corpus
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Milford v. Metro. Dade Cnty., 430 So. 2d 951 (Fla. 3d DCA 1983)…bution. The fact that the release as written unambiguously fails to extinguish the County’s liability is plainly not dispositive and, indeed, is irrelevant to Milford’s claim for reformation. Gonzalez v. Travelers Indemnity Company of Rhode Island, 408 So. 2d 741 (Fla. 3d DCA 1982). Where an agreement does not carry out the intent of the parties or violates such intent, equity will reform the agreement. Id. at 742. Of course, such relief is equally available to one seeking to reform a release because of mutu…1 / 3
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Soucy v. Casper, 658 So. 2d 1015 (Fla. 4th DCA 1995)…t there was never any intent to settle appellant’s claim, an allegation which appellee has not contradicted, a genuine question of material fact has been raised, precluding summary judgment. The court in Gonzalez v. Travelers Indemnity Co. of R.I., 408 So. 2d 741 (Fla. 3d DCA 1982), reversed summary judgment where objective evidence of mutual mistake was presented. Here, appellant was still undergoing medical treatment for her injuries. State Farm tendered its policy limits on Mr. Soucy's claim after receivi…
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Ric Abernethy v. Nat'l Union Fire INS. Co., 717 So. 2d 196 (Fla. 5th DCA 1998)…2d 951 (Fla. 3d DCA) (the fact that the release is unambiguously written is not dispositive and, indeed, is irrelevant to plaintiffs claim for reformation), review denied, 440 So. 2d 352 (Fla. 1983); Gonzalez v. Travelers Indem. Co. of Rhode Island, 408 So. 2d 741 (Fla. 3d DCA 1982) (assuming, arguendo, that the release is clear and unambiguous, that finding is not dispositive of plaintiffs counter-claim for reformation which alleged in essence, that the release did not express the intent of the parties).1 A…
Previewing 3 of 6 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited (15 total)
- Lovett v. Lovett, 112 So. 768 (Fla. 1927)
- Switow v. Sher, 136 Fla. 284 (Fla. 1939)
- Alexander v. Kirkham, 365 So. 2d 1038 (Fla. 3d DCA 1978)
- Ormsby v. Ginolfi, 107 So. 2d 272 (Fla. 3d DCA 1958)
- Niagara Fire Ins. Co. v. Allied Elec. Co., 319 So. 2d 594 (Fla. 3d DCA 1975)
- Fla. Cranes, Inc. v. Fla. E. Coast Props., Inc., 324 So. 2d 721 (Fla. 3d DCA 1976)
- Royal Ins. Co. v. Smith, 158 Fla. 472 (Fla. 1947)
- Hanover Ins. Co. v. Publix Mkt., Inc., 198 So. 2d 346 (Fla. 4th DCA 1967)
- Palilla v. ST. Paul Fire & Marine Ins. Co., 322 So. 2d 46 (Fla. 1st DCA 1975)
- Meyer v. AETNA Cas. & Sur. Co., 360 So. 2d 462 (Fla. 3d DCA 1978)