LAWYERS SURETY CORPORATION, APPELLANT,
v.
DENNIS T. CLARKE AND MARIANNE CLARKE, HIS WIFE, APPELLEES

Fla. 5th DCA | 1982-05-12
No. 81-1265
DAUKSCH, C. J., and COWART, J., concur.
413 So. 2d 1260 Florida District Court of Appeal, Fifth District (1982) Positive Treatment
Cited by 5 cases

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.

Synopsis

Lawyers Surety Corporation appealed a judgment entered against it on the pleadings for $3,500 in liquidated damages plus 18% interest on construction bonds. The court reversed, holding that the surety's affirmative defenses were legally sufficient and that factual disputes precluded judgment on the pleadings, and that the 18% interest rate was improper.


Holding

The court reversed because (1) the surety's affirmative defenses were legally sufficient to defeat judgment on the pleadings, (2) various factual disputes must be resolved by the trier of fact, and (3) the 18% interest rate was improper because the bonds contained no provision for a specific interest rate, limiting any award to the maximum legal rate under section 687.01, Florida Statutes (1981).


Headnotes

[1] A judgment on the pleadings is erroneous where the answer pleads a sufficient legal defense.

[2] A trial court must resolve disputed facts before entering a judgment on the pleadings.

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Key Quotes

“This is erroneous where the answer pleads a sufficient legal defense.”

Establishes the legal standard that judgment on the pleadings cannot be granted when the defendant's answer contains sufficient legal defenses

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Facts & Procedural History

The Clarkes contracted with Howard Connell for house construction and paid a $3,500 deposit. Connell failed to perform, refused to return the deposit,…

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Opinion of the Court
SHARP, Judge.

SHARP, Judge.

Lawyers Surety Corporation appeals the trial court’s final judgment on the pleadings entered against it as a surety on two construction bonds. The judgment was in favor of Dennis and Marianne Clarke, the homeowners, in the sum of three thousand five hundred dollars ($3,500) as liquidated damages, with interest at eighteen percent (18%) per annum in the amount of one thousand two hundred sixty dollars ($1,260). We reverse because the pleadings fail to conclusively establish liability on the surety’s part, and further, there is no basis upon which the award of interest at eighteen percent (18%) was proper. The pleadings show that the Clarkes contracted with Howard Connell for construction of a house. They paid him a three thousand five hundred dollar ($3,500) deposit, but aside from bringing in a load of fill dirt and sand, Connell completely failed to perform the contract and he did not return the Clarkes’ deposit. After the Clarkes and Connell signed their contract, Lawyers Surety issued a masonry and a carpentry bond to Connell for the benefit of the Clarkes. Appellees subsequently sued Con-nell and Appellant.'

The amended complaint alleged: that Connell failed to use the proceeds given him for labor or materials, with the intent to defraud the Clarkes in violation of Florida Statute 713.34(3); that Connell repeatedly refused to return the Clarkes’ money; that Connell had conducted deceptive trade practices in violation of Florida Statute 501.213 by embezzling the Clarkes’ funds, and the Clarkes were entitled to attorney’s fees as a consequence of the violation of this statute. It further alleged that appellant issued the two bonds which were in full force and effect when the Clarkes entered into the contract with Connell. The Clarkes sought compensatory and punitive damages, attor ney’s fees and costs. Connell defaulted and summary judgment was entered against him.

Lawyers Surety answered the amended complaint raising as affirmative defenses: failure to state a cause of action because the subject contract was not bonded by Lawyers Surety; the Clarkes’ complaint mixed up causes of action and theories of recovery in violation of the Florida Rules of Civil Procedure, and none of the activities described therein were bonded by the appellant; conditions precedent to bringing an action under the bond were not performed; there was no contract or applicable statutory provision allowing the Clarkes’ attorney’s fees; the bonds were not in force the date of the contract, and they were not binding on Lawyers Surety because they were not executed by a person authorized to bind it. Each affirmative defense appears sufficient to state a legal defense to the Clarkes’ suit against the surety.

The court granted the Clarkes’ motion for judgment in their favor on the pleadings. This is erroneous where the answer pleads a sufficient legal defense. Morris v. Truax, 152 So. 2d 515 (Fla.2d DCA 1963). Further, in this case various facts are in dispute1 which must be resolved by the trier of fact. Krieger v. Ocean Properties, Ltd., 387 So. 2d 1012 (Fla. 4th DCA 1980).

We also note that it was error for the trial court to award the Clarkes eighteen percent (18%) interest. The bonds in question make no provision for any particular rate of interest. Therefore, the maximum legal rate of interest the trial court could award, assuming any interest should be awarded, is controlled by section 687.01, Florida Statutes (1981).

We reverse and remand for further proceedings.

REVERSED AND REMANDED.

DAUKSCH, C. J., and COWART, J., concur. . For example, some of the facts in dispute are: (1) the effective date of the bonds; (2) the performance of conditions precedent required by the bonds; (3) whether the deposit was made exclusively for masonry and carpentry work; and (4) whether the parties intended these bonds would cover Connell’s complete defalcation under the Clarkes’ contract.


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Citator

Cited By

  • Doran v. Gainer, 443 So. 2d 473 (Fla. 5th DCA 1984)
    …r than the statutory rate of interest. It is well established that assessment of interest on a debt (since money is fungible) must be made at the statutory rate where no specific rate was agreed upon by the parties. Lawyer’s' Surety Corp. v. Clarke, 413 So. 2d 1260 (Fla. 5th DCA 1982). AFFIRMED in part; REVERSED in part; and REMANDED for entry of judgment consistent with this opinion. DAUKSCH J., and DIAMANTIS, Associate Judge, concur. . Carol Gainer testified at the trial that following Holly’s death the m…
  • Horta v. Flanigan's Enters. Emps. Credit Union, Inc., 488 So. 2d 657 (Fla. 3d DCA 1986)
    …of repossession was equal to the amount of the total debt that it secured.” Id. at 1365). Where an answer pleads a sufficient legal defense, it is error to enter a judgment on the pleadings in favor of the plaintiff. Lawyers Surety Corp. v. Clarke, 413 So. 2d 1260 (Fla. 5th DCA 1982). Reversed and remanded for further proceedings. . In pertinent part, this subsection of the statute reads: “Unless collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a re…
  • Lonray, Inc. v. Azucar, Inc., 568 F. Supp. 189 (M.D. Fla. 1983)
    …n the total amount of damages from July 1, 1982, to the date of judgment at the rate of 12% per annum. Fla.Stat. § 687.01 (1982); Par *195 ker v. Brinson Construction Co., 78 So.2d 873 (Fla.1955); Lawyers Surety Corp. v. Clarke, 413 So.2d 1260 (Fla. 5th DCA 1982). FINDINGS OF FACT Counts III, IV, V and Counterclaim 1. On June 30,1980, Azúcar entered into an Exclusive Storage and Handling Agreement (hereinafter “Agreement”) with Lon-ray. Plaintiffs Exhibit 1. 2. In the Agre…

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