ALPHA ELECTRIC SUPPLY, INC., A FLORIDA CORPORATION, APPELLANT/CROSS-APPELLEE,
v.
G.E. LEE ENTERPRISES, INC., FORMERLY KNOWN AS G.E. LEE ELECTRICAL ENTERPRISES, INC., A FLORIDA CORPORATION; GORDON E. LEE AND ROSEMARY LEE, AS TRUSTEES OF G.E. LEE ELECTRIC CONTRACTING & APPLIANCES, INC., A DISSOLVED FLORIDA CORPORATION; G.E. LEE, ALSO KNOWN AS GORDON E. LEE; ROSEMARY LEE, ALSO KNOWN AS ROSMARY LEE AND ROSMARY S. LEE; ERIC RICHARDS; RONALD R. RICHARDS; HAMMOCK BROS. ROOFING COMPANY, INC., A DISSOLVED FLORIDA CORPORATION; THE STATE OF FLORIDA; THE DINERS' CLUB, INC., A FOREIGN CORPORATION QUALIFIED TO DO BUSINESS IN THE STATE OF FLORIDA; AND J.B. IVEY & COMPANY, A NORTH CAROLINA CORPORATION QUALIFIED TO DO BUSINESS IN THE STATE OF FLORIDA, APPELLEES/CROSS-APPELLANTS
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Alpha Electric Supply sued G.E. Lee Enterprises and its stockholder guarantors for open-account indebtedness. The trial court granted defendants' motion for new trial based on an alleged inconsistency in the jury's special verdict, and denied prejudgment interest and costs on the grounds that they would exceed the guarantee limits. The appellate court reversed, finding the motion for new trial was an abuse of discretion and that prejudgment interest and costs are allowable even when they exceed the face amount of a limited guarantee.
The court reversed the grant of the motion for new trial, finding it was an abuse of discretion because answer four to the special verdict was compatible with the other answers, and in any event was not so contradictory as to contravene the clear import of the other fifteen answers. The court also reversed the denial of prejudgment interest and costs, holding that such awards are allowable from the date of demand even though they cause the total judgment to exceed the $30,000 limitation in the personal guarantees.
[1] A trial court abuses its discretion by granting a new trial based on an alleged inconsistency in a special verdict when at least one interpretation of the questioned answ…
[2] A trial court abuses its discretion by granting a new trial based on an alleged inconsistency in a special verdict when the questioned answer does not contravene the clea…
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Join FLexlaw to unlock all legal intelligence“although a surety's liability is limited to the penal amount of a bond, interest on that penal amount may be collected from the time it became the surety's duty to pay, even though the total sum the surety must pay will then exceed the penal sum named in the bond”
Establishes that prejudgment interest is allowable against guarantors even when it causes total liability to exceed the guarantee limit
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Join FLexlaw to unlock all legal intelligenceAlpha Electric Supply brought suit against G.E. Lee Enterprises for open-account indebtedness and against Gordon and Rosemary Lee as personal guaranto…
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CAMPBELL, Judge.
This appeal stems from a complaint below wherein the appellant/cross-appellee, Alpha Electric Supply, Inc., sued appellees on an alleged open-account indebtedness of G.E. Enterprises, Inc., and the personal guarantees of its stockholders, Gordon and Rosemary Lee, appellees/cross-appellants here.
Appellant raises two points on appeal. Those points are whether the trial court erred in granting appellees’ motion for new trial, and whether the court further erred in construing appellees’ limited liability on their personal guarantee so as to deny prejudgment interest and costs. We find merit in both points raised by appellant. Ap-pellees Lee raise one point on cross-appeal which we find has no merit.
First, while recognizing the great weight to be given to the granting of a new trial by a trial judge, we believe that appel-lees’ motion below should not have been granted. We do not here have to consider the principles set forth in Cloud v. Fallis, 107 So. 2d 264 (Fla. 2d DCA 1958), for the trial judge below granted the motion for new trial not on the basis of the manifest weight of the evidence, but on what he considered an inconsistency in the verdict. The ease was submitted to the jury on the basis of a special verdict which consisted of sixteen separate questions to be answered by them.
The trial court considered the answer to question four as being contradictory to the answers to the other questions on the special verdict. We feel that this was an abuse of discretion.
We find that at least one interpretation of the answer to question four would be entirely compatible with the answers to the other questions.
However, even if this were not true, the answer to question four would not be so contradictory as to contravene the clear import of the answers to the other fifteen questions. We, therefore, reverse the trial court’s holding granting appellees’ motion for new trial.
Secondly, the trial court held that appellant would not be entitled to either costs or prejudgment interest from the date of the demand on appellees for payment under their personal guarantees, because to award costs and interest would cause the judgment to exceed the limit of their guarantees. This is contrary to the holding of our supreme court in American Surety Co. of New York v. Gedney, 136 Fla. 10, 185 So. 844 (Fla.1939), and this court, Hughes v. Irons, 370 So. 2d 76 (Fla. 2d DCA 1979).
Appellees’ personal guarantees here were limited to a liability not to exceed $30,000. To impose costs and prejudgment interest would cause their liability to exceed that figure. In American Surety Co. of New York, the court held that although a surety’s liability is limited to the penal amount of a bond, interest on that penal amount may be collected from the time it became the surety’s duty to pay, even though the total sum the surety must pay will then exceed the penal sum named in the bond. In Hughes, this court held that prejudgment interest, computed from the date the debt is found to be due, is allowable when a claim is liquidated.
Therefore, on appellant’s appeal, we reverse the holding of the trial court and direct that the verdict should be reinstated and judgment should be entered accordingly to include costs and prejudgment interest from the date of demand, which the record indicates as November 21, 1979.
On the cross-appeal filed by appellees Lee, we affirm the trial judge’s denial of appellees’ motions for directed verdict, requested jury instruction, counterclaim and contentions of usury.
Reversed on appeal and affirmed on cross-appeal and remanded for compliance herewith.
GRIMES, A.C.J., and SCHEB, J., concur.
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Cited By
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Spitz v. Prudential-Bache Sec., Inc., 549 So. 2d 777 (Fla. 4th DCA 1989)…ations, asking “must all the questions be answered yes to constitute fraud?” A new trial is proper when a verdict appears to be inconsistent and the intent of the jury cannot be determined. Alpha Electric Supply, Inc. v. G.E. Lee Enterprises, Inc., 441 So. 2d 698 (Fla. 2d DCA 1983); Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Anderson, 501 So. 2d 635 (Fla. 1st DCA 1986). We therefore reverse and remand for a new trial consistent with this opinion. DOWNEY and DELL, JJ., concur.…
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Armstrong v. Bank OF Am., N.A., 776 So. 2d 326 (Fla. 3d DCA 2001)…after litigation on the guaranteed note may ex [*327] ceed the stated limit where the additional amount is the result of the imposition of prejudgment interest which accrues as a matter of law. See Alpha Elec. Supply, Inc. v. G.E. Lee Enters., Inc., 441 So. 2d 698, 700 (Fla. 2d DCA 1988) (guarantors’ personal guarantees limited their total liability to $30,000.00; nevertheless, they were held hable for prejudgment interest on the liquidated claim irrespective of the limits contained in their guaranties). Af…
Authorities Cited
- Cloud v. Fallis, 107 So. 2d 264 (Fla. 2d DCA 1958)
- Am. Sur. Co. of N.Y. v. Gedney, 136 Fla. 10 (Fla. 1939)
- Hughes v. Irons, 370 So. 2d 76 (Fla. 2d DCA 1979)