STANLEY CAIDIN, APPELLANT,
v.
PHYLLIS LAKOW AND IRIS EGAN, AS CO-PERSONAL REPRESENTATIVES OF THE ESTATE OF PHILLIP P. ZIPES, DECEASED, APPELLEES
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Stanley Caidin, a former attorney for Phillip Zipes, sought declaratory relief to confirm the validity of a settlement agreement and release waiving conflict of interest concerns related to his representation of another party. The trial court denied his declaratory judgment claim and awarded damages to the Estate, but the appellate court reversed, finding Caidin had legitimate grounds to seek judicial confirmation of his rights under the release.
Caidin was entitled to declaratory relief because the release's defective execution (missing one required signature) and the Estate's counsel's threats to pursue the very conduct the release purported to preclude created genuine doubt about Caidin's rights under the agreement. The trial court erred in denying the declaratory judgment claim and in awarding attorney's fees to the Estate, as Caidin's exercise of his legitimate right to seek judicial confirmation did not constitute a breach of the release or a frivolous lawsuit.
[1] A party is entitled to seek a declaratory judgment when they are in doubt as to the existence or nonexistence of a right, status, immunity, power, or privilege, and are e…
[2] The mere clarity of a contract does not preclude a declaratory judgment action if extrinsic facts create doubt regarding the agreement's application.
Previewing 2 of 6 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 mere fact that the contract is clear and unambiguous on its face does not prevent one from seeking a declaration of his rights under such contract where there exist extrinsic facts which would affect the clear and unambiguous language of the written agreement.”
Establishes that extrinsic facts (such as defective execution or threats) can justify declaratory relief even when contract language appears clear.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceCaidin was formerly Zipes' attorney and submitted a claim for attorney's fees against Zipes' estate after his death. The parties settled and exchanged…
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PER CURIAM.
Stanley Caidin appeals from a final judgment of the trial court which denied his claims for declaratory relief, granted a counterclaim for damages in favor of the appellee Estate of Phillip Zipes, and awarded the Estate $2,000 plus interest and costs. We reverse. Caidin was formerly the attorney for Phillip Zipes. When Zipes died, Caidin submitted a claim against the Estate for attorney's fees. The claim was settled and the parties exchanged releases, though the release supplied to Caidin had the signature of only one of the two co-personal representatives. As part of the settlement, the Estate agreed to waive any claim of conflict of interest in Caidin’s representation of Zipes’ former partner, Octaviano, in a claim against the Estate.
At some point, a new attorney became counsel for the personal representatives. Caidin, who was concerned about the validity of a release with only one signature, wrote to the attorney, advised him of the agreement allowing the representation of Octaviano and asked if there would be an objection. The attorney responded by letting it be known on two occasions, once through his secretary to Caidin personally and once in a judicial hearing, that he believed Caidin to have a clear conflict of interest and that he was about to refer Caidin to The Florida Bar for discipline.
Caidin, who by this time had undertaken the representation of Octaviano, needed confirmation that the agreement, including the waiver of conflict of interest, was effective. When the Estate would not provide these assurances, Caidin filed a declaratory judgment action to ascertain his rights under the settlement agreement.
While in its answer the Estate conceded that it had consented to Caidin’s representation of Octaviano, it counterclaimed for damages on the theory that since the purpose of the release was to “buy peace,” Caidin breached the release by filing the declaratory judgment action. The trial court agreed and assessed as damages the amount of attorney’s fees the court concluded were incurred by the Estate in defending the declaratory judgment action.
The Estate defends the ruling of the trial court by pointing out that no motion for disqualification was ever filed against Caid-in, nor was there any attempt on the part of the Estate to abrogate the agreement, and finally, the release clearly stated that the Estate waived any right it may have had to claim a conflict of interest.
The right to use the declaratory judgment statute, section 86.011, Florida Statutes (1987), depends upon whether Caidin can show that he is in doubt as to the existence or nonexistence of a right, status, immunity, power or privilege and that he is entitled to have such doubt removed. Rosenhouse v. 1950 Spring Term Grand Jury, 66 So. 2d 445, 447 (Fla.1952). “The mere fact that the contract is clear and unambiguous on its face does not prevent one from seeking a declaration of his rights under such contract where there exist extrinsic facts which would affect the clear and unambiguous language of the written agreement.” Bacon v. Crespi, 141 So. 2d 823, 825 (Fla.3d DCA 1962); accord Berkowitz v. Firestone, 173 So. 2d 161 (Fla.3d DCA 1965).
The fact that the release contained only one signature instead of two, as required by section 733.615, Florida Statutes (1987), and the undisputed testimony of the threats by the Estate’s counsel to take the precise action that the release purported to preclude, were sufficient to raise a question of Caidin’s rights under the release. At the time Caidin filed the declaratory judgment action he had good grounds to do so. We conclude that Caidin was entitled to a declaratory judgment in his favor, and that the trial court erred in entering judgment against him on the declaratory judgment count.
It was therefore also error for the trial court to award attorney’s fees to the Estate, whether as damages for breach of the release or as a penalty for a frivolous lawsuit under section 57.105, Florida Statutes (1987). Caidin’s exercise of his legitimate right to a declaratory judgment did not constitute a breach of the release. Similarly, the fact that Caidin had a real and concrete doubt as to his rights under the release precludes the application of section 57.105, Florida Statutes, as the basis of the award for attorney’s fees.
Reversed.
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C.A.T. LLC. v. Island Developers, Ltd., 827 So. 2d 373 (Fla. 3d DCA 2002)…anding to seek such relief must rest upon a showing that the plaintiff is in doubt as to the existence or non-existence of a right, status, immunity, power, or privilege and that the plaintiff is entitled to have such doubt removed. Caidin v. Lakow, 546 So. 2d 788, 789 (Fla. 3d DCA 1989). That litigant must have such a present and substantial interest in the action as to be directly affected by the declaration sought. See Reibel v. Rolling Green Condo. A, Inc., 311 So. 2d 156, 158 (Fla. 3d DCA 1975). The tw…
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