SECURITY TITLE & ABSTRACT, INC., APPELLANT,
v.
FIRST AMERICAN TITLE INSURANCE COMPANY AND JULIAN H. BOOS, APPELLEES
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Security Title appeals a summary judgment dismissing First American Title Insurance Company and Julian Boos from a tortious interference lawsuit. The appellate court reverses, finding genuine issues of material fact regarding whether defendants participated in tortious acts including breach of fiduciary duty and conspiracy to divert the company's assets and employees.
The trial court erred in granting summary judgment for First American and Boos. Genuine issues of material fact exist regarding their knowledge and participation in the allegedly tortious activities, and a jury could reasonably infer tortious conduct from the evidence presented. A party can be liable for civil conspiracy to cause unlawful breach of fiduciary duty even if that party owed no direct duty to the victim.
[1] A jury may reasonably infer tortious acts occurred when evidence suggests a party agreed to obtain business records by illicit means from a competitor's employer.
[2] A party can be liable for civil conspiracy to achieve an unlawful breach of fiduciary duty, even if that party owed no direct duty to the injured entity.
Previewing 2 of 3 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“a jury could reasonably infer that tortious acts had been committed. For example, deposition testimony indicates that First American required Conway and the new company to acquire certain "title plant" records that might be expected to cost $100,000, yet the final start-up budget that was approved by First American did not allocate funds for the required records.”
Establishes the basis for finding triable issues of material fact regarding First American's participation in tortious conduct
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Join FLexlaw to unlock all legal intelligenceFirst American and T & T Holding Company were prospective purchasers of Security Title in 1979. T & T purchased the corporation for approximately $1.7…
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WIGGINTON, Judge.
Security Title, plaintiff in this multi-count lawsuit, appeals from the trial court’s order of summary judgment which dismissed defendants First American and Julian Boos from the continuing action below. We reverse.
Preparation of this case has resulted in a voluminous record on appeal revealing allegations, facts and concomitant nuances too numerous to fully recount. In brief, First American and T & T Holding Company were two prospective purchasers of Security Title, Inc. in late summer 1979. T & T eventually purchased the corporation for approximately $1.7 million. Nevertheless, according to Security Title’s complaint, within just a few months and at a fraction of that cost, First American in effect acquired the assets of Security Title’s principal income producer, the Tallahassee Title Company. In this action Security Title asserts that First American and its agent, Boos, committed tortious acts to achieve this coup.
In its complaint, Security Title alleged that Tallahassee Title manager Michael Conway and other trusted employees, with assistance from First American and Boos, formed a competing title company (“Professional Title Group”) by tortiously pirating away most of Tallahassee Title’s valued employees and valuable customers, and by surreptitiously photocopying Tallahassee Title records. It is undisputed that First American provided financial backing and exercised some control in the newly-formed Professional Title Group. However, the trial judge, who denied summary judgment for Conway, granted summary judgment for First American and Boos upon a finding that the evidence did not show they participated in the allegedly tortious acts. The judge expressed concern that “[b]y simply characterizing an agreement to enter into a business competing with the plaintiff as a ‘conspiracy,’ plaintiff seeks to convert perfectly lawful acts into unlawful conduct."
While we agree with the trial court that in the spirit of free enterprise (see Section 542.16, Florida Statutes (1980 Supp.)) a new business should be encouraged to germinate and blossom, a jury could reasonably infer that tortious acts had been committed. For example, deposition testimony indicates that First American required Conway and the new company to acquire certain “title plant” records that might be expected to cost $100,000, yet the final start-up budget that was approved by First American did not allocate funds for the required records. From this and from other evidence in the record a jury might reasonably infer that First American had agreed with Conway that the records could be compiled more cheaply by taking them from Conway’s employer, Tallahassee Title.
Further, the record contains evidence that Boos, acting for First American, conspired with Conway to breach his fiduciary duty to Tallahassee Title by soliciting Tallahassee Title employees. See Fish v. Adams, 401 So. 2d 843 (Fla. 5th DCA 1981); Insurance Field Services, Inc., et a 1. v. White & White Inspection and Audit Service, Inc., 384 So. 2d 303 (Fla. 5th DCA 1980); Kilgore Ace Hardware, Inc. v. Newsome, et al., 352 So. 2d 918 (Fla. 2d DCA 1977). We cannot subscribe to appellees’ theory that because First American owed no duty to Tallahassee Title, it could not be liable for a civil conspiracy that had as its goal the unlawful breach of fiduciary duty by Conway toward Tallahassee Title. See Kilgore Ace Hardware, 352 So. 2d at 920.
In short, genuine issues of material fact exist regarding the knowledge and participation of First American and Boos in the allegedly tortious activities in this case, Accordingly, the trial court’s order of summary judgment is REVERSED.
BOOTH and JOANOS, JJ., concur.
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Dozier & GAY Paint Co., Inc., 518 So. 2d 946 (Fla. 1st DCA 1988)…kowski, 456 So. 2d 949, 950 (Fla. 3d DCA 1984); American Diversified Insurance Service, Inc. v. Union Fidelity Life Insurance Co., 439 So. 2d 904, 906 (Fla. 2d DCA 1983). In Security Title & Abstract, Inc. v. First American Title Insurance Company, 414 So. 2d 604 (Fla. 1st DCA 1982), this court considered conspiracy allegations analogous to those presented in the instant case. In Security Title, First American and T & T Holding Company were prospective purchasers of Security Title. T & T purchased the corpor…1 / 2
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Werner Enters., Inc. v. Carson Mendez (Fla. 5th DCA 2023)…oyees prior to the end of his employment.” Id. A business can be liable for civil conspiracy when it induces another business’s employees to breach the duty they owe to their employer. See Sec. Title & Abstract, Inc. v. First Am. Title Ins. Co., 414 So. 2d 604, 604–05 (Fla. 1st DCA 1982). Moreover, these business torts can warrant punitive damages. See, e.g., Bailey v. St. Louis, 196 So. 3d 375 (Fla. 2d DCA 2016). In Bailey, the plaintiffs’ complaint alleged claims for, inter alia, breach of fiduciary…
Authorities Cited
- Ins. Field Servs., Inc. v. White & White Inspection & Audit Serv., Inc., 384 So. 2d 303 (Fla. 5th DCA 1980)
- Clarice Fish v. Frieda Adams, 401 So. 2d 843 (Fla. 5th DCA 1981)
- Kilgore ACE Hardware, Inc. v. Newsome, 352 So. 2d 918 (Fla. 2d DCA 1977)