REGAL MARBLE, INC., DAVE SARKEL AND IRVING WALDER, APPELLANTS,
v.
DREXEL INVESTMENTS, INC., ET AL., APPELLEES; JOSIAS & GOREN, P.A. AND JAMES CHEROF, APPELLANTS/CROSS APPELLEES, V. REGAL MARBLE, INC., DREXEL INVESTMENTS, INC., ET AL., APPELLEES/CROSS APPELLANTS

Fla. 4th DCA | 1987-10-07
Nos. 4-86-1735, 4-86-2225
HERSEY, C.J., and WALDEN, J., concur.
515 So. 2d 1015 Florida District Court of Appeal, Fourth District (1987) Caution
Cited by 4 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

Regal Marble sought damages for fraud and civil conspiracy arising from an allegedly fraudulent engineering sketch used against it in an eviction proceeding. The trial court granted summary judgment for the defendants based on res judicata and the doctrine that intrinsic fraud cannot support a separate cause of action. The appellate court reversed, holding that a separate action for damages based on fraud is cognizable despite the prior eviction proceeding.


Holding

A separate action for damages arising from fraudulent acts is cognizable and is not barred by res judicata or collateral estoppel where the action raises issues not litigated in the prior proceeding, the prior judgment does not contain a sufficiently clear finding of fraud, and the present action involves parties not part of the original proceedings. DeClaire v. Yohanan does not support the argument that intrinsic fraud cannot be the basis for a separate cause of action for damages.


Headnotes

[1] A separate cause of action for damages may be maintained for fraudulent acts that occurred during a prior trial.

[2] Res judicata and collateral estoppel do not apply when a subsequent action raises issues not litigated in prior proceedings.

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Key Quotes

“We find no support in DeClaire v. Yohanan for appellees' argument that appellants cannot maintain a separate cause of action for damages arising out of the alleged fraudulent acts by appellees.”

Establishes that intrinsic fraud does not preclude a separate action for damages, contrary to appellees' reliance on DeClaire.

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Facts & Procedural History

Regal Marble leased business premises from Drexel Investments. A dispute arose over property tax increases, and when Regal Marble refused to pay, Drex…

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Opinion of the Court
DELL, Judge.

DELL, Judge.

This appeal involves an action for fraud, civil conspiracy and negligence arising out of an engineering sketch that was allegedly fraudulently prepared and placed into evidence in a tenant eviction case. Appellants seek reversal of a summary judgment in favor of appellees.

Briefly stated, appellant Regal Marble, Inc. leased its business premises from appellee Drexel Investments, Inc. A dispute arose over an increase in property taxes. When Regal Marble refused to pay an increase in those taxes, appellee filed suit seeking eviction. During the eviction proceeding, appellee Drexel offered an engineering sketch of the premises into evidence. Appellee Drexel prevailed in the eviction proceeding. Regal Marble subsequently filed for relief from judgment pursuant to Florida Rule of Civil Procedure 1.540 and claimed that the engineering sketch was procured through fraud. The trial court found in favor of Regal Marble, stating:

Further, it is uncontroverted that the party wall was “graphically depicted” on the survey at the direction of Joe Kolb, the designated officer representing Drex-el Investments, Inc., the plaintiff in this cause. Though the court is reluctant to find, it does not find intentional fraud on the part of Mr. Kolb, it is clear that the results of his actions to have this survey created in such a fashion and to have this survey introduced at trial was fraudulent in the results it obtained, to wit: an improper verdict.

Appellants subsequently filed the instant action against appellees seeking damages for fraud, civil conspiracy and a separate count for negligence on the part of the engineer and engineering firm. The trial court granted a summary final judgment finding that appellants’ action was barred by res judicata and that appellants’ allegations of fraud constituted an allegation of intrinsic fraud and hence were not cognizable in the action. Appellants contend that the trial court erred in these findings and argue that genuine issues of material fact exist as to their allegations of fraud and civil conspiracy. Appellants also contend that the doctrine of res judicata cannot be applied because this action involves different parties and issues.

Appellees rely upon DeClaire v. Yo-hanan, 453 So. 2d 375 (Fla.1984), to support their argument that no cause of action exists for any intrinsic fraud that may have occurred during the trial of the eviction proceeding. Appellees also argue that this cause of action is barred by res judicata and collateral estoppel because the issue of intrinsic fraud was litigated in the 1.540 proceeding. We find no support in De-Claire v. Yohanan for appellees' argument that appellants cannot maintain a separate cause of action for damages arising out of the alleged fraudulent acts by appellees.

We also find no support for the application of res judicata or collateral estoppel to this action. Appellant’s complaint raises issues not raised in the eviction. Furthermore, the trial court’s order granting Regal Marble's motion for relief from judgment does not contain a sufficiently clear finding of fraud to apply the doctrine of res judicata or collateral estoppel to this action. See Universal Construction Company v. City of Fort Lauderdale, 68 So. 2d 366 (Fla.1953). Finally, we note that there are parties involved in the present action that were not a part of the original eviction proceedings. Because we find the doctrines of res judicata and collateral estoppel inapplicable, it is unnecessary to discuss the effect of any alleged privity between the parties.

Additionally, we find no merit m appellees’ contention that they are entitled to attorney’s fees pursuant to section 57.-105, Florida Statutes (1985). We also reverse the assessment of attorney’s fees against appellants pursuant to the lease agreement. As we view this action, it is an independent action for damages arising out of fraud and civil conspiracy. See Dickson v. Dunn, 399 So. 2d 447 (Fla. 5th DCA 1981).

Accordingly, we reverse the summary final judgment in favor of appellees and remand this cause to the trial court for further proceedings not inconsistent herewith.

REVERSED and REMANDED.

HERSEY, C.J., and WALDEN, J., concur.


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Citator

Cited By

  • Hutchins v. McCLUNG, 572 So. 2d 1029 (Fla. 5th DCA 1991)
    …PER CURIAM. AFFIRMED. Regal Marble, Inc. v. Drexel Investments, Inc., 568 So. 2d 1281 (Fla. 4th DCA 1990); Regal Marble, Inc. v. Drexel Investments, Inc., 515 So. 2d 1015 (Fla. 4th DCA 1987), rev. denied, 525 So. 2d 877 (Fla.1988); Wright v. Yurko, 446 So. 2d 1162 (Fla. 5th DCA 1984). COWART and GRIFFIN, JJ., and ANTOON, J., II, Associate Judge, concur.…
  • Regal Marble, Inc. v. Drexel Invs., Inc., 568 So. 2d 1281 (Fla. 4th DCA 1990)
    …he criminal process, the Florida Bar or other offices of government. We have also considered, and reject, appellants’ contention that these issues have previously been decided by this court in a prior appeal, Regal Marble, Inc. v. Drexel Inv. Inc., 515 So. 2d 1015 (Fla. 4th DCA 1987), rev. denied, 525 So. 2d 877 (Fla.1988). Upon a review of the opinion in that appeal and the record in each case, we find no error or abuse of discretion in the trial court’s conclusion that the issue considered in that appeal di…

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