LEAMON AND NELLIE JEAN CHADWICK, APPELLANTS/CROSS-APPELLEES.
v.
BILL CORBIN, APPELLEE/CROSS-APPELLANT

Fla. 1st DCA | 1985-10-18
No. BC-448
SMITH and THOMPSON, JJ., concur.
476 So. 2d 1366 Florida District Court of Appeal, First District (1985) Positive Treatment
Cited by 7 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

The Chadwicks sued their attorney Bill Corbin for negligence in preparing business sale documentation, alleging he failed to file a security interest with the Florida Secretary of State. The trial court directed a verdict for the Chadwicks on the malpractice issue and the jury awarded $7,957.94 in damages. The appellate court affirmed the judgment against Corbin on all issues.


Holding

The appellate court affirmed the judgment for the Chadwicks, finding: (1) Corbin committed malpractice as a matter of law by failing to file the security interest in Tallahassee as required by Florida Statutes; (2) consequential and punitive damages were properly stricken; (3) prejudgment interest was properly denied because damages were unliquidated; (4) attorney's fees were properly denied as discretionary; and (5) Corbin's affirmative defenses were properly struck as frivolous.


Headnotes

[1] In actions based on a tort arising out of a contract, damages must be within the contemplation of the parties and foreseeable as a proximate result of the negligence.

[2] Malice, gross negligence, or fraud are necessary to support an award of punitive damages.

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Key Quotes

“the proper place to file an order to perfect a security interest is ... the office of the Department of State.”

Establishes the statutory requirement that Corbin failed to follow, making the directed verdict proper

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Facts & Procedural History

The Chadwicks hired Corbin to prepare documentation for selling their business. The sale agreement required the buyers to execute security instruments…

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Opinion of the Court
MILLS, Judge.

MILLS, Judge.

The Chadwicks appeal a jury award of damages in their suit against attorney Bill Corbin “in contract for [his] negligence in performing his function as attorney.” Cor-bin cross-appeals. We affirm on all issues.

The Chadwicks hired Corbin to prepare the documentation for the sale of their business. A portion of the resulting agreement required the buyers to execute and deliver to the Chadwicks security instruments in their favor on the inventory of the business. The instruments were then to be recorded in Calhoun County, Florida, and in the Office of the Secretary of State in Tallahassee. While the agreement did not specifically designate Corbin as the party responsible for the recording, he duly filed the required Form UCC-l in Calhoun County. He did not file a copy in Tallahassee.

Some two years after the sale, the buyers filed for bankruptcy, listing the Chad-wicks as secured creditors. The bankruptcy trustee searched the records at the Secretary of State’s Office and, finding no security interest in their favor, notified the Chadwicks that he had a superior interest in the inventory. The trustee took no action to dispose of the inventory for ten months thereafter, when he accepted a bid for it of approximately $2,600. In the ten month interim, the inventory had suffered water damage and the premises on which it was stored was broken into at least once.

The Chadwicks sued Corbin, seeking damages for lost inventory, plus consequential and punitive damages. The latter two damage claims were stricken on a pretrial motion by Corbin. Also stricken before trial were Corbin’s defenses of contributory negligence, estoppel, waiver and the statute of limitations. The court declined to grant the Chadwicks’ motion in limine seeking to exclude certain evidence of the value of the inventory.

The case proceeded to trial on the issues of whether Corbin committed malpractice and damages. The parties presented con flicting expert testimony on the reasonableness of requiring Corbin to file the security interest with the Secretary of State. The court directed a verdict for the Chadwicks on this question. The jury was therefore permitted to consider only the damages issue and returned an award for the Chad-wicks of $7,957.94. The Chadwicks’ post-trial motion for attorney’s fees pursuant to Fla.R.Civ.P. 1.380(c) was denied.

The trial court did not err in striking the Chadwicks’ claims for consequential and punitive damages. In actions based on a tort arising out of a contract, damages must be such as can be said to have been within the contemplation of the parties. No damages may be recovered where losses do not usually result from or could not have been foreseen as a proximate result of a particular negligence. 17 Fla.Jur.2d Damages § 38. The consequential damages claimed by the Chadwicks clearly do not meet this standard. Neither did they plead the malice, gross negligence or fraud necessary to support an award of punitive damages. See Stinson v. Femin-ist Women’s Health Center, Inc., 416 So. 2d 1183 (Fla. 1st DCA 1982).

The Chadwicks’ motion in limine was correctly denied. The purpose of such a motion is to prevent the introduction of improper evidence, the mere mention of which at trial would be prejudicial. Dailey v. Multicon Development, Inc., 417 So. 2d 1106, 1107 (Fla. 4th DCA 1982). The motion herein states no reason why different valuations of the inventory were not probative to the issue of damages or so prejudicial as to outweigh their probativeness.

Fla.R.Civ.P. 1.380(c) states that “[i]f a party fails to admit ... the truth of any matter as requested under Rule 1.370 (request for admissions) and if the party requesting the admissions thereafter proves ... the truth of the matter, he may apply to the court for an order requiring the other party to pay him the reasonable expenses incurred in making that proof that may include attorney’s fees.” (emphasis supplied). Reasonable expenses must be awarded absent certain circumstances which the trial court found did not exist. However, the rule clearly provides that an award of attorney’s fees as a part of those expenses is discretionary. The Chadwicks must therefore show a clear abuse of that discretion and they have not done so. We affirm on this issue.

Finally, the Chadwicks allege error in the trial court’s denial of their request for prejudgment interest. In contract actions, it is proper to allow interest from the date the debt was due rather than from judgment. However, the rule presupposes an exact amount due and a date from which interest can be computed. Bryan and Sons Corp. v. Klefstad, 265 So. 2d 382, 385 (Fla. 4th DCA 1972). Here, the amount of damages was disputed, and no date certain on which it was owed was alleged. In essence, therefore, the judgment was one for unliquidated damages and the trial court was correct in denying prejudgment interest thereon. See Parker’s Mechanical Contractors, Inc. v. Eastpoint Water and Sewer District, 367 So. 2d 665, 669 (Fla. 1st DCA 1979), citing Bryan and Sons.

Turning to the cross-appeal, Corbin alleges that the trial court erred in striking his defenses as outlined above. Review of this issue was made extremely difficult by the absence from the record of the motion to strike, the transcript of the pretrial proceeding where an oral motion and ruling were allegedly made and the total lack of reasoning in the written order striking the defenses. However, because the record as a whole reflects that these defenses are totally frivolous, we affirm the trial court’s action. Neither was there error in the denial of Corbin’s motion for directed verdict. He failed to demonstrate that no proper view of the evidence could possibly sustain the Chadwicks’ position at trial. See Clark v. Better Construction Co., Inc., 420 So. 2d 929 (Fla. 3d DCA 1982).

Corbin also appeals the trial court’s grant of a directed verdict in favor of the Chadwicks on the malpractice issue. While this is a closer question, we affirm. When a judgment based on a directed verdict is appealed, the appellate court must read the evidence in a light most favorable to the party against whom the verdict is directed, resolving every conflict and inference for that party. White v. Arvanitis, 424 So. 2d 886 (Fla. 1st DCA 1982). There is conflict in the expert testimony as to the reasonableness of requiring Corbin to file the security interest in Tallahassee; his experts, practitioners in the Calhoun County area, testified that such filing was often omitted. However, the Florida Statutes unequivocally state that “the proper place to file an order to perfect a security interest is ... the office of the Department of State.” Section 679.401(l)(c), Florida Statutes (1981). Therefore, because Corbin undertook to perfect the security interest herein, the trial court did not err in finding as a matter of law that he had a duty to do so in the only effective manner. We affirm.

SMITH and THOMPSON, JJ., concur.


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Cited By

  • Craigside, LLC v. GDC View, LLC, 74 So. 3d 1087 (Fla. 1st DCA 2011)
    …3d DCA 1994) (holding that demand for return of deposit was a liquidated contractual claim which became due when the defendant demanded the return of its deposit, and the defendant was entitled to interest on its deposit claim); Chadwick v. Corbin, 476 So. 2d 1366, 1368 (Fla. 1st DCA 1985) (“In contract actions, it is proper to allow interest from the date the debt was due rather than from judgment. However, the rule presupposes an exact amount due and a date from which interest can be computed.” (citing Brya…
  • …arty for denying a request to admit a hotly contested, central issue to the case”). We also note that, even where Rule 1.380(c) expenses must be awarded, “an award of attorney’s fees as a part of those expenses is discretionary.” Chadwick v. Corbin, 476 So. 2d 1366, 1368 (Fla. 1st DCA 1985); see also Shaw v. State ex rel. Butterworth, 616 So. 2d 1094, 1096 (Fla. 4th DCA 1993) (finding that an assessment of attorney’s fees is not mandatory under Rule 1.380(c)). Accordingly, the order on appeal is, in all resp…
  • United States v. SCI, Inc., 828 F.2d 671 (11th Cir. 1987)
    …So. 2d 31 (Fla.Dist.Ct.App.1985); Broward County v. Sattler, 400 So. 2d 1031, 1033 (Fla.Dist.Ct.App.1981). A claim is liquidated if a conclusive determination of the exact amount due can be made at the time of demand for payment. Chadwick v. Corbin, 476 So. 2d 1366, 1368 (Fla.Dist.Ct.App.1985), review denied, 488 So. 2d 67 (Fla.1986). Thus, a claim is unliquidated if the amount of damages cannot be computed except on conflicting evidence, inferences, and interpretations. Town of Longboat Key v. Carl E. Widell…

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