LAWRENCE H. SCHIMMEL AND LAWRENCE H. SCHIMMEL, P.A., AND LOIS H. SCHIMMEL, APPELLANTS,
v.
MERRILL LYNCH PIERCE FENNER & SMITH, INC., APPELLEE
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Merrill Lynch appealed the trial court's directed verdict rulings in a dispute involving bookkeeping errors in customer accounts. The court affirmed judgments requiring the Schimmels to repay $4,500 they improperly withdrew and awarding them $10.88 they were owed, while rejecting their conversion and punitive damages claims.
The court affirmed the directed verdicts. On Merrill Lynch's claim, undisputed evidence established Dr. Schimmel received a $4,500 overpayment which he had no right to retain. On the Schimmels' counterclaim, undisputed evidence proved the account balance was $10.88, not $779. The Schimmels could not establish conversion because they never obtained possession of any check, and conversion requires a specific identified fund rather than general indebtedness. Punitive damages were unavailable because no independent tort existed beyond the simple breach of contract.
[1] A renewed motion for directed verdict may be granted when undisputed evidence demonstrates a party's claim and there is no competent evidence to support a contrary jury f…
[2] A party cannot recover for conversion of a check if they never obtained possession of the check.
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“Because the undisputed evidence proves that the defendants owe the plaintiff $4,500.00, and because there is no competent evidence in the record to support the jury's finding that the defendants were not overpaid in that amount, it is the Court's legal obligation at this time to grant the plaintiffs renewed motion for directed verdict on its claim against the defendants, and enter judgment in the plaintiffs favor in the amount of $4,500.00.”
Establishes that directed verdict was proper where undisputed evidence proved amount owed
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Join FLexlaw to unlock all legal intelligenceDr. Schimmel withdrew $4,500 from his professional association's account with Merrill Lynch in November 1980 based on account statements. In December …
The full statement of facts, procedural history, and disposition for this case are member content.
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PER CURIAM.
The post-trial order under review is affirmed insofar as it grants a renewed motion for directed verdict made at trial by the plaintiff [Merrill Lynch Pierce Fenner & Smith, Inc.] on its main claim against the defendants [Lawrence H. Schimmel, Lawrence H. Schimmel, P.A., Lois Schimmel] and enters judgment for the said plaintiff in the amount of $4,500. We agree entirely with the reasons given by the trial court in the order under review for granting this motion and for entering judgment for the plaintiff thereon:
“1. On the plaintiffs claim against the defendants, the plaintiff’s undisputed evidence demonstrates that Dr. Schimmel withdrew $4,500.00 from his P.A.’s ‘ready asset’ account with the plaintiff in November, 1980. The check was made payable to Dr. Schimmel, individually, and was negotiated by him. The account was debited in that amount, leaving a balance of $9,763.00. In December, 1980, Dr. Schimmel withdrew an additional $4,500.00 from the account. The check was made payable to Dr. Schim-mel, individually, and was negotiated by him. Because of an apparent bookkeeping error, the account was not debited for the second withdrawal, and Dr. Schimmel received a December statement reflecting a balance of $9,838:00 in the account (which represented the ending balance in November plus earnings on that balance). He then withdrew this amount in its entirety from the account. When the plaintiff subsequently discovered its bookkeeping error, it demanded that the $4,500.00 overpayment be returned. Dr. Schimmel refused. Dr. Schimmel offered no evidence at trial to contradict this evidence, or any evidence which tended to prove that he or his P.A. were entitled at any time to the total amount withdrawn in November and December. Instead, he testified only that he relied on the statements received from the plaintiff to determine the amount he was owed. Because the uncontradicted evidence proves that the December, 1980, statement was in error, this testimony was insufficient to present a jury question on the amount owing to the plaintiff. At the close of the evidence, the Court reserved ruling on the plaintiff's motion for directed verdict by denying the motion in accordance with Rule 1.480(b), in order to allow the jury to return a verdict which might obviate the need for a ruling on the motion. Because the undisputed evidence proves that the defendants owe the plaintiff $4,500.00, and because there is no competent evidence in the record to support the jury's finding that the defendants were not overpaid in that amount, it is the Court’s legal obligation at this time to grant the plaintiffs renewed motion for directed verdict on its claim against the defendants, and enter judgment in the plaintiffs favor in the amount of $4,500.00. Judgment against Dr. Schimmel in his individual capacity is appropriate, because he received the overpayment in that capacity.”
R. 178-79 (footnote omitted).
Given the trial court’s correct factual statement of this case, a directed verdict for the plaintiff on its claim below was legally required. Anchor Savings Bank v. Berlin, 445 So. 2d 675 (Fla. 4th DCA 1984).
The post-trial order under review is also affirmed insofar as it grants a renewed motion for directed verdict made at trial by the plaintiff on the defendants’ counterclaim and enters judgment in favor of the said defendants in the amount of $10.88. We agree entirely with the reasons given by the trial court for reaching this result:
“2. On the Schimmels’ counterclaim against the plaintiff, the evidence is also not in dispute. It reflects that Dr. and Mrs. Schimmel had a second account with the plaintiff; that Dr. Schimmel requested that the account be liquidated and a check be paid to them; and that the plaintiff declined to do so, believing that it was entitled to withhold the check as an offset to the $4,500.00 owed it by Dr. Schimmel and his P.A. Although the parties were originally of the belief that the account balance was $779.00, as reflected by the statements provided the Schimmels by the plaintiff, it was proven at trial without dispute that all but $10.88 of that amount was the result of another bookkeeping error. Dr. and Mrs. Schimmel offered no evidence at trial to contradict this evidence, or any evidence which tended to prove that they were entitled at any time to an amount in excess of $10.88. Instead, once again, Dr. Schimmel testified only that he relied on the statements received from the plaintiff to determine the amount he was owed. Because the uncontradicted evidence proves that the statements were in error, and that the total balance in the Schimmels’ account was only $10.88, this testimony was insufficient to present a jury question on the amount which the plaintiff owed Dr. and Mrs. Schimmel. At the close of the evidence, the plaintiff moved the Court to direct the jury to return a verdict for the Schimmels in the amount of $10.88, on the ground that the evidence proved a breach of contract resulting in that amount of damages. The Court reserved ruling on the plaintiff’s motion by denying it in accordance with Rule 1.480(b), in order to allow the jury to return a verdict which might obviate the need for a ruling on the motion. Because the undisputed evidence proves that the plaintiff owes Dr. and Mrs. Schimmel $10.88, and because there is no competent evidence in the record to support the jury’s finding that the plaintiff owes them $779.00, it is the Court’s legal obligation at this time to grant the plaintiff’s renewed motion for directed verdict on the Schimmels’ claim against it, and enter judgment in the Schimmels’ favor in the amount of $10.88.
... 3. The plaintiff is entitled to judgment on the Schimmels’ claim for punitive damages for two separate reasons:
a. First, the evidence adduced on the Schimmels’ counterclaim does not support an action for conversion. The Schimmels’ counterclaim alleged the conversion of a check. The Schimmels never obtained possession of the cheek, however. Absent possession of the check by the Schimmels, the cheek could not legally be ‘converted’ by the plaintiff. See City National Bank v. Wernick, 368 So. 2d 934 (Fla. 3d DCA), cert. denied, 378 So. 2d 350 (Fla.1979). In addition, the evidence adduced proves, at most, only an action for breach of contract, because all that it proves is that the plaintiff failed to honor its contractual obligation to pay upon demand móney owed upon an open account. An indebtedness which may be discharged by the payment of money in general cannot support an action for conversion. See, e.g., Belford Trucking Co. v. Zagar, 243 So. 2d 646 (Fla. 4th DCA 1970). The Court is also not persuaded that a different result is required by Aero International Corp. v. Florida National Bank of Miami, 437 So. 2d 156 (Fla. 3d DCA 1983) [pet. for review denied, 449 So. 2d 264 (Fla.1984)], because the object of the conversion in that case was, as the District Court made clear, a specific fund capable of separate identification which was required to be deposited in another account. In this case, however, the plaintiff was not required to pay the Schimmels identical monies collected by it; it could discharge its obligation to the Schimmels by the payment of money generally; and the general rule of BELFORD TRUCKING therefore applies.
b. Second, the law appears to be settled that punitive damages are not recoverable for the type of breach of contract involved in this case absent proof of a tort ‘distinguishable from or independent of [the] breach of contract.’ Lewis v. Guthartz, 428 So. 2d 222, 224 (Fla.1982). See Southern Bell Tel[ephone] & Tel[egraph] Co. v. Hanft, 436 So. 2d 40, 41 (Fla.1983) (‘In order for punitive damages to be recoverable in [a breach of contract] case, the breach of contract must be attended by some additional wrongful conduct amounting to an independent tort.’); Rolls v. Bliss & Nyitray, Inc., 408 So. 2d 229 (Fla. 3d DCA ), dismissed, 415 So. 2d 1359 (Fla.1982); Overseas Equipment Co., Inc. v. Aceros Arquitectonicos, 374 So. 2d 537 (Fla. 3d DCA 1979); Mobil Chemical Co. v. Hawkins, So. 2d (Fla. 1st DCA 1983) (1983 FLW DCA 2272) [,pet. for review denied, 449 So. 2d 264 (Fla.1984) ]. In this case, all that the Schimmels proved is that the plaintiff breached its contract with them by refusing to pay upon demand money owed to them; they did not prove the commission of any tort ‘distinguishable from or independent of’ this simple breach of contract; and, for both of the reasons expressed in this paragraph, the Court has a legal obligation to grant the plaintiff’s renewed motion for directed verdict on the Schim-mels’ claim for punitive damages.”
R. 179-81 (footnotes omitted).
The balance of the trial court order under review is, by its own terms, mooted by our affirmance of the above-stated trial court rulings, and, accordingly, we do not pass on any of the mooted rulings.
Affirmed as stated above.
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Murray Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA 1986)…ther express or implied.” A debt which may be discharged by the payment of money in general cannot form the basis of a claim for conversion. Capital Bank v. G & J Investment Corporation, supra; Schimmel v. Merrill Lynch Pierce Fenner & Smith, Inc., 464 So. 2d 602 (Fla.3d DCA 1985); Plotch v. Gregory, supra; Douglas v. Braman Porsche Audi, Inc., 451 So. 2d 1038 (Fla.3d DCA 1984). This is not a case where a party intentionally received a specifically identifiable sum of money knowing that he had no right to t…
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Soraya Ghodrati v. Miami Paneling Corp., 770 So. 2d 181 (Fla. 3d DCA 2000)…1 (Fla.1996); Southern Bell Tel. & Tel. Co. v. Hanft, 436 So. 2d 40 (Fla.1983); John Brown Automation, Inc. v. Nobles, 537 So. 2d 614 (Fla. 2d DCA 1988), rev. denied, 547 So. 2d 1210 (Fla.1989); Schimmel v. Merrill Lynch Pierce Fenner & Smith, Inc., 464 So. 2d 602 (Fla. 3d DCA 1985). Plaintiff argues that because her complaint pled tort claims of fraudulent inducement, deceit and negligent misrepresentation this case falls within the exception and she is entitled to punitive [*183] damages. A plaintiff, howev…
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DELTA Brands Int'l Corp. v. Banco de la Nacion Argentina, 487 So. 2d 405 (Fla. 3d DCA 1986)…er dismissing counts I and II of appellant’s counterclaim, see Star Fruit Co. v. Eagle Lake Growers, Inc., 160 Fla. 130, 33 So. 2d 858 (1948); Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA 1986); Schimmel v. Merrill Lynch Pierce Fenner & Smith, Inc., 464 So. 2d 602 (Fla. 3d DCA 1985); Belford Trucking Co. v. Zagar, 243 So. 2d 646 (Fla. 4th DCA 1970); see also Dilg v. Bank of United States, 244 A.D. 223, 278 N.Y.S. 972 (1935), appeal denied, 270 N.Y. 673 (1936), without prejudice to appellant’s amending the cou…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Belford Trucking Co., Inc. v. Zagar, 243 So. 2d 646 (Fla. 4th DCA 1970)
- Lewis v. Barnett Guthartz, 428 So. 2d 222 (Fla. 1982)
- Rolls v. Bliss & Nyitray, Inc., 408 So. 2d 229 (Fla. 3d DCA 1981)
- S. Bell Tel. & Tel. Co. v. Hanft, 436 So. 2d 40 (Fla. 1983)
- Overseas Equip. Co., Inc. v. Aceros Arquitectonicos, 374 So. 2d 537 (Fla. 3d DCA 1979)
- Roysdon v. State, 437 So. 2d 156 (Fla. 2d DCA 1983)
- City Nat'l Bank OF Miami v. Wernick, 368 So. 2d 934 (Fla. 3d DCA 1979)
- Anchor Sav. Bank v. Berlin, 445 So. 2d 675 (Fla. 4th DCA 1984)