GRAY DRUGFAIR, INC., A FLORIDA CORPORATION, APPELLANT/CROSS-APPELLEE,
v.
RAVEN HELLER AND REDEVCO CORP., A FLORIDA CORPORATION, APPELLEES/CROSS-APPELLANTS
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Gray Drugfair appealed a jury verdict judgment in favor of the plaintiff and cross-defendant, arguing the trial court erred in refusing to instruct the jury that damages awards are not subject to federal income taxation. The Florida Third District Court of Appeal affirmed the judgment, holding that trial courts have discretion to deny such instructions in state law actions.
The trial court has discretion to deny a requested instruction that any award to the plaintiff is not subject to federal income taxation. While the Supreme Court held in Liepelt that such an instruction is required in federal statutory actions, the Florida Third District declines to adopt Liepelt as a matter of state law and instead allows trial courts to exercise discretion in determining whether to give such instructions.
[1] A trial court has discretion to deny a requested jury instruction that any award to the plaintiff is not subject to federal income taxation.
[2] Florida law does not require a jury instruction that an award to a plaintiff is not subject to federal income taxation, even when federal law might otherwise suggest such…
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“the trial court may in its discretion deny a requested instruction that any award to the plaintiff is not subject to federal income taxation”
Establishes the core holding that trial courts have discretion to refuse tax-related jury instructions
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Join FLexlaw to unlock all legal intelligenceGray Drugfair was a defendant in a civil action brought by the plaintiff Raven Heller against Heller and Redevco Corp. A jury verdict was entered agai…
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SCHWARTZ, Chief Judge.
There is no merit in any of the arguments presented by the appellant-co-defendant for reversal of the judgments entered on the jury verdicts against it and in favor of the plaintiff and the cross-defendant respectively. First Federal Savings & Loan Association v. Wylie, 46 So. 2d 396 (Fla.1950); Ortner v. Linch, 128 So. 2d 152, 155 (Fla. 3d DCA 1960), cert. denied, 138 So. 2d 340 (Fla.1961); Harvey v. Maistrosky, 114 So. 2d 810, 814 (Fla. 2d DCA 1959); DeBold v. Ocean Reef Club, Inc., 368 So. 2d 95 (Fla. 3d DCA 1979).
Treating the only point which warrants discussion, we adhere to our conclusion in Atlantic Coast Line R. Co. v. Braz, 182 So. 2d 491, 494-95 (Fla. 3d DCA 1966), quashed without prejudice on other grounds, 196 So. 2d 109 (Fla.1967), that the trial court may in its discretion deny a requested instruction that any award to the plaintiff is not subject to federal income taxation. In common with the overwhelming majority of the jurisdictions which have considered the issue since the Supreme Court held in Norfolk & Western R. Co. v. Liepelt, 444 U.S. 490, 100 S.Ct. 755, 62 L.Ed.2d 689 (1980), followed in Caribe Tugboat Corp. v. Duffy, 427 So. 2d 227 (Fla. 1st DCA 1983), review denied, 436 So. 2d 98 (Fla.1983), cert. denied, 464 U.S. 1041, 104 S.Ct. 706, 79 L.Ed.2d 170 (1984), that such a charge is required in an action under a federal statute, we decline to adopt Liepelt as a matter of the law of this state. Klawonn v. Mitchell, 105 Ill.2d 450, 86 Ill.Dec. 478, 475 N.E. 2d 857 (1985), and cases and authorities cited. Accord, e.g., Gulf Offshore Co. v. Mobile Oil Corp., 628 S.W. 2d 171 (Tex.Ct.App.1982) (applying state law after remand required by post-Liepelt decision in Gulf Offshore Co. v. Mobile Oil Corp., 453 U.S. 473, 101 S.Ct. 2870, 69 L.Ed.2d 784 (1981)), cert. denied, 459 U.S. 945, 103 S.Ct. 259, 74 L.Ed.2d 202 (1982); Yukon Equipment, Inc. v. Gordon, 660 P. 2d 428, 433 (Alaska 1983); Irwin v. Pacific Southwest Airlines, 133 Cal.App.3d 709, 184 Cal.Rptr. 228 (1982); Griffin v. General Motors Corp., 380 Mass. 362, 403 N.E. 2d 402 (1980). We also reject the plaintiff’s contention that her claim for punitive damages was erroneously stricken. White Construction Co. v. DuPont, 455 So. 2d 1026 (Fla.1984); Diaz v. Sears, Roebuck & Co., 475 So. 2d 932 (Fla. 3d DCA 1985).
Affirmed.
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RUM Runner, Inc. v. Murawski, 481 So. 2d 1301 (Fla. 3d DCA 1986)…PER CURIAM. Affirmed. Gray Drugfair, Inc. v. Heller, 478 So. 2d 1159 (Fla. 3d DCA 1985); see Mann v. Etchells, 132 Fla. 409, 416, 182 So. 198, 201 (1938); Ford v. Robinson, 403 So. 2d 1379 (Fla. 4th DCA 1981).…
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Ageloff v. DELTA Airlines Inc., 860 F.2d 379 (11th Cir. 1988)…amage award will not be subject to federal income taxation. Poirier v. Shireman, 129 So. 2d 439 (Fla.2d Dist.Ct.App.1961). Such an instruction is not required, however, but is left to the discretion of the trial court. Gray Drugfair, Inc. v. Heller, 478 So. 2d 1159 (Fla.3d Dist.Ct.App.1985). The District Court did not err in refusing the requested jury instruction. The Pnce of Expertise Under 28 U.S.C. § 1920(3), expert witness fees are taxable as costs just as are any other witness fees. 28 U.S.C. § 1821 g…
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Benavides v. Tesla, Inc (S.D. Fla. 2025)…5 ---PAGE 6--- Case 1:21-cv-21940-BB Document 433 Entered on FLSD Docket 06/30/2025 Page 6 of 41 Case No. 21-cv-21940-BLOOM/Torres of the trial court.") (citing Poirier v. Shireman, 129 So. 2d 439 (Fla. 2d DCA 1961); Gray Drugfair, Inc. v. Heller, 478 So. 2d 1159 (Fla. 3d DCA 1985)). In exercising its sound discretion, the Court finds that an instruction on the taxability of any jury award is inappropriate. Not only is an assessment of Plaintiffs' future income tax liability highly conjectural, but it is al…
Authorities Cited (18 total)
- Gulf Offshore Co. v. Mobil OIL Corp., 453 U.S. 473 (U.S. 1981)
- Norfolk & W. Ry. Co. v. Liepelt, 444 U.S. 490 (U.S. 1980)
- White Constr. Co., Inc. v. Dupont, 455 So. 2d 1026 (Fla. 1984)
- First Fed. Sav. & Loan Ass'n v. Wylie, 46 So. 2d 396 (Fla. 1950)
- City of Mission v. United States, 464 U.S. 1041 (U.S. 1984)
- Ernst v. Ind. Bell Tel. Co., Inc., 464 U.S. 1041 (U.S. 1984)
- Atl. Coast Line R.R. Co. & Seaboard Air Line R.R. Co. v. Braz, 182 So. 2d 491 (Fla. 3d DCA 1966)
- Morton v. Providence Hosp., 459 U.S. 945 (U.S. 1982)
- LaBow v. Mall, 459 U.S. 945 (U.S. 1982)
- Atl. Coast Line R.R. Co. & Seaboard Air Line R.R. Co. v. Braz, 196 So. 2d 109 (Fla. 1967)