STANLEY B. RICHARD, APPELLANT,
v.
LEONARD E. TRIESTER, APPELLEE

Fla. 3d DCA | 1982-01-19
No. 80-1793
Before BARKDULL, HENDRY and FERGUSON, JJ.
409 So. 2d 101 Florida District Court of Appeal, Third District (1982) Positive Treatment
Cited by 6 cases

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Holding

The court held that the trial court erred in compromising the amount of overpayment and in failing to award interest and attorney's fees as provided by the contract.


Headnotes

[1] Money paid by mistake of fact may be recovered, and the recipient cannot retain it without showing a legal or equitable ground for doing so.

[2] A trial court lacks the power to compromise the amount of an overpayment when the fact of the overpayment is established and no lawful or equitable reason exists for reta…

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Facts & Procedural History

Purchasers overpaid $14,235.46 due to an error in closing documents for an office building purchase. The purchasers' attorney, after assignment of the…

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Opinion of the Court
HENDRY, Judge.

HENDRY, Judge.

Appellant, attorney for the purchasers in a real estate transaction, filed this suit to recover $14,235.46 inadvertently overpaid to the sellers at closing.

In February, 1977, five individuals entered into a contract with appellee Treister and others to purchase an office building for the sum of $825,000. A purchase money mortgage in the amount of $600,000 was arranged; the purchasers were to be credited for taxes, prepaid rent and security deposits. On the closing statement, the amount of the security deposits and taxes, $14,235.46, was subtracted from the $600,-000 mortgage figure, but no credit for that amount appeared in the purchasers’ column, effectively increasing the purchase price to $839,235.46.

Six months later the purchasers discovered the error and demanded reimbursement. Appellee offered to deduct the sum from final mortgage payments. The purchasers’ attorney, appellant, refused the offer and instituted suit to recover the overpayment. Appellant then paid the purchasers the $14,-235.46, took an assignment of their claim, and was substituted as the plaintiff. Following a non-jury trial, the court entered final judgment in appellant’s favor for $8,500, together with costs, but without interest or attorney’s fees. The court denied appellant’s motion for rehearing and appel-lee’s motion to amend. These rulings generated the appeal by Richard and a cross-appeal by Treister. Appellant, noting that the lower court held there was a mistake of fact concerning the $14,235.46, argues that the court lacked the power to compromise the amount. He also challenges the trial court’s failure to award interest or attorney’s fees despite a specific term in the contract for sale providing for such fees in the event of litigation. We agree with appellant on each of these points.

The record confirms that a mistake occurred in the closing documents, leading the purchasers to overpay. The closing statement failed to take account of the credit for taxes and security deposits, resulting in a purchase price of $839,235.46 rather than the intended price of $825,000. Additionally, the parties’ correspondence shows that the sellers recognized their windfall and offered to reduce the final mortgage payments by that amount.

Once it was shown that appellee received an overpayment, the burden of proof was on appellee to demonstrate his right to the funds:

When the fact is proved that one has money received from another, if the recipient cannot show a legal and equitable ground for retaining it, the law creates the privity and promise necessary to sustain the action for money had and received. And it is settled that money paid under a mistake of facts may be so recovered, it being considered unconscionable that money so paid should be detained from the payor on his discovery of the mistake and demand for the money’s return.

First State Bank of Fort Meade v. Singletary, 124 Fla. 770, 169 So. 407, 408 (1936); Ferguson v. Cotler, 382 So. 2d 1315, 1316 (Fla. 5th DCA 1980). Accord, Central Bank and Trust Company v. General Finance Corp., 297 F. 2d 126 (5th Cir. 1961). Appellee received an overpayment and offered no lawful or equitable reason for retaining the money. We conclude that the record amply supports the claim and the trial court properly entered judgment for appellant.

We are unable to determine, however, why the trial judge awarded only $8,500 to appellant. Having concluded that a mistake occurred, the lower court had no grounds for reducing the amount of the recovery, particularly when, as here, both sides agreed that the judgment had to be for the entire amount claimed or nothing at all. Accordingly, the judgment must be reversed and remanded to award appellant the full recovery sought.

Having ruled in the appellant’s favor, the trial judge should also have awarded appellant reasonable attorney’s fees in accordance with the contract which provided that “in connection with any litigation arising out of the contract, the prevailing party shall be entitled to recover all costs incurred including reasonable attorneys fees.”

An action to recover an overpayment at closing is plainly “litigation arising out of the contract.” See Milu, Inc. v. Duke, 204 So. 2d 31, 33 (Fla. 3d DCA 1967) (an agreement to pay a stated consideration for property survives delivery of the deed at closing). As the prevailing party, appellant was irrefragably entitled to receive attorney’s fees. Brickell Bay Club Condominium Association, Inc. v. Forte, 397 So. 2d 959 (Fla. 3d DCA 1981) (courts have no discretion to decline to enforce provisions in contracts for awards of attorney fees, any more than any other contractual provision). Accord, Kendall East Estates, Inc. v. Banks, 386 So. 2d 1245 (Fla. 3d DCA 1980).

The judgment should also have included interest from the date of institution of this suit. First State Bank of Fort Meade v. Singletary, supra, (in suit to recover overpayment of interest, recovery should be for amount of overpayment with interest from date of demand or institution of suit). See generally, Parker v. Brinson Construction Co., 78 So. 2d 873 (Fla.1955).

The judgment under review is reversed and remanded to the trial court with directions to enter a final judgment for appellant in the amount of $14,235.46 plus interest from the date of suit; and to assess reasonable attorney’s fees to be awarded appellant.

The cross-appeal is without merit.

Reversed and remanded with directions.


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Citator

Cited By

  • Ball v. Pub. Health Tr. OF Dade Cnty., 491 So. 2d 608 (Fla. 3d DCA 1986)
    …y, 124 Fla. 770, 169 So. 407 (1936), which the trial court followed, squarely held that, in the case of a mutually unaware overpayment, interest does not run until a demand1 or the institution of suit, whichever is first. Accord Richard v. Triester, 409 So. 2d 101 (Fla. 3d DCA 1982). The appellants counter that Singletary did not survive Argonaut Insurance Co. v. May Plumbing Co., 474 So. 2d 212 (Fla.1985), which holds that the right to interest is determined by applying the principle that the loss itself is…
  • Dubov Realty, Inc. v. Kucharek, 433 So. 2d 58 (Fla. 3d DCA 1983)
    …fees. Having found that the appellee breached a valid and enforceable contract, the trial court was without authority to refuse to award the damages to the appellant called for by the plain and unambiguous terms of the contract. Richard v. Triester, 409 So. 2d 101 (Fla. 3d DCA 1982); Brickell Bay Club Condominium Association, Inc. v. Forte, 397 So. 2d 959 (Fla. 3d DCA 1981); Silver Blue Lake Apts. No. 3, Inc. v. Marson, 334 So. 2d 48 (Fla. 3d DCA 1976); Treasure Cay Ltd. v. Gentile, 261 So. 2d 569 (Fla. 4th D…
  • E.B. Sherman, Inc. v. Mirizio, 556 So. 2d 1143 (Fla. 3d DCA 1989)
    …to each party the benefits or their value given and received in furtherance of the agreement. In this regard, we recognize that Sherman may be entitled to retain all or part of the money he received for equitable reasons.1 See Richard v. Triester, 409 So. 2d 101 (Fla. 3d DCA 1982). Thus we grant rescission and remand the case to the trial court for a determination of what if any restitution is due cross-appellants. . Mirizio and Smith received Sherman s Florida customers list as part of the agreement.…

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