ARTHUR KRONTZ, APPELLANT,
v.
LOREE RENE FEILER AND JEFFREY E. FEILER, A/K/A FEILER & FEILER, APPELLEES

Fla. 3d DCA | 1989-12-12
No. 89-403
Before BASKIN, FERGUSON and COPE, JJ.
553 So. 2d 1302 Florida District Court of Appeal, Third District (1989) Positive Treatment
Cited by 9 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

Krontz appealed a summary judgment awarding treble damages under Florida's worthless check statute after his $1,500 check was returned for insufficient funds. The court affirmed, holding that although the statutory action was filed prematurely before the thirty-day notice period expired, the motion to dismiss was properly denied once that period had elapsed and Krontz failed to pay.


Holding

The court held that while the statutory action should not have been filed until after the thirty-day notice period expired, once that period elapsed without payment, the motion to dismiss was properly denied and treble damages were properly awarded. Krontz's claimed setoffs and disputes did not excuse the statutory liability, though the statute does provide a hardship waiver not applicable here.


Headnotes

[1] A civil action under section 68.065, Florida Statutes, may not be filed until the expiration of the thirty-day notice period provided by the statute.

[2] A premature filing of a civil action under section 68.065, Florida Statutes, does not require dismissal if the thirty-day notice period has expired by the time the motion…

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Key Quotes

“Unless this amount is paid in full within the 30-day period, the holder of the check or instrument may file a civil action against you for three times the amount of the check”

Establishes that the statutory action cannot be filed until after the thirty-day notice period expires

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Facts & Procedural History

Krontz issued a check for $1,500 that was returned for insufficient funds. Appellees filed suit and simultaneously delivered the statutory thirty-day …

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Opinion of the Court
COPE, Judge.

COPE, Judge.

Appellant Krontz, who was defendant below, appeals a summary judgment awarding treble damages1 to plaintiffs on account of a worthless check. We affirm.

Appellees, who were plaintiffs below, brought suit against Krontz in a commer cial dispute relating to a business lease. One count of the complaint made a claim under section 68.065, Florida Statutes (Supp.1986), alleging that Krontz’ check for $1,500 had been returned for insufficient funds. Simultaneously with the filing of the complaint, plaintiffs delivered the statutory thirty-day notice required by subsection 68.065(3). In substance the notice demanded that the amount of the check and statutory service charge be paid within thirty days, and advised of the statutory penalties available in the event of nonpayment.

Twenty-eight days after the filing of the complaint, Krontz moved to dismiss the statutory count on the ground that the suit had been filed prior to the expiration of the thirty-day notice period, and was thus premature. Subsequently, after the thirty-day notice period had expired, the motion was denied as to that count, and the statutory claim was later carried forward in plaintiffs’ amended complaint. Eventually the trial judge granted summary judgment on the statutory count, and awarded treble damages, interest, and the statutory fee provided by subsection 68.065(2).

Krontz is correct in saying that the statutory action should not have been filed until the thirty-day notice period had expired. That is so because the statutory notice specifically states, “Unless this amount is paid in full within the 30-day period, the holder of the check or instrument may file a civil action against you for three times the amount of the check ....” § 68.065(3), Fla.Stat. (Supp.1986) (emphasis added). The intention of the statute is to preclude the necessity for a civil suit by giving the maker or drawer a powerful financial incentive to make payment within the thirty days. Since the action was filed prematurely, Krontz was entitled to an order abating the action until the thirty-day period expired. However, by the time the motion was heard, the thirty-day period had elapsed and Krontz still had not paid. No further abatement was warranted, nor was dismissal required. The motion to dismiss was properly denied.

Krontz also urges that the failure to make payment should be excused. By the time Krontz received the statutory notice, commercial hostilities had erupted, and each party claimed that the other had breached the lease. Krontz argues that his nonresponse to the statutory notice was in essence a stopped payment, and rested on a belief that his own damages would more than offset the amount of the check.

In rejecting that argument we are guided by the terms of the statute. The statute does have a provision, not applicable here, which allows the trier of fact to waive all or part of the statutory damages in case of economic hardship. § 68.065(5), Fla.Stat. Where that defense is not applicable, the maker or drawer must either pay the sum demanded, or if there is a bona fide dispute, the appropriate procedure would be for the maker or drawer of the instrument to interplead the funds. Tendering the sum to the court would, in our view, constitute good faith compliance with the statute and would preclude the claim for treble damages. That is so because the statute is narrowly aimed at nonpayment by reason of insufficient funds. Once the funds are paid or interpled, the statutory objective has been met. A unilateral failure to respond to the notice does, however, trigger the statutory liability. Where, as here, the anticipated setoffs did not materialize to the extent anticipated, there is a net amount owing under the statute.

After careful consideration of the parties’ supplemental briefs addressing the computation of the final judgment, we do not disturb the amount awarded.

Affirmed.

. The terms of the statute are somewhat unusual, in that the treble damage award is in addition to, and not inclusive of, the amount owed on the unpaid check. § 68.065(1), (3), Fla.Stat. (Supp.1986).


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Citator

Cited By

  • Diaz v. Bell Microproducts-Future Tech, Inc., 43 So. 3d 138 (Fla. 3d DCA 2010)
    …on 68.065(6) ... speaks of the court’s authority to waive all or part of the statutory damages due to economic hardship, the term statutory damages refers to those damages which were created by statute, i.e., the treble damages.”); Krontz v. Feiler, 553 So. 2d 1302, 1303 (Fla. 3d DCA 1989) (noting that section 68.065 has a provision “which allows the trier of fact to waive all or part of the statutory damages in case of economic hardship”). Reversed and remanded for further proceedings consistent with this op…
  • F & A Dairy Prods., Inc. v. Imperial Food Distribs., Inc., 798 So. 2d 803 (Fla. 4th DCA 2001)
    …or drawer to satisfy the dishonored check was due to [*804] economic hardship, the court or jury has the discretion to waive all or part of the statutory damages. The third district discussed the application of this subsection in Krontz v. Feiler, 553 So. 2d 1302 (Fla. 3d DCA 1989): The statute does have a provision, not applicable here, which allows the trier of fact to waive all or part of the statutory of damages in case of economic hardship. § 68.065(5) [now (6) ], Fla. Stat. Where that defense is not a…
  • Nasr Int'l Trading Co., Inc. v. Rahul Int'l Inc., 675 So. 2d 704 (Fla. 3d DCA 1996)
    …eal, however, section 68.065(1), Florida Statutes (1991), requires an award of three times the $16,634.60 bad check issued by Nasr International Trading Co., Inc. in addition to, rather than including, the face amount of the check. Krontz v. Feiler, 553 So. 2d 1302 n. 1 (Fla. 3d DCA 1989). Hence, the judgment on this basis for Rahul International, Inc., and against Nasr International Trading Co., Inc., shall be increased after remand from $49,-903.80 ($16,634.60 + 2 x $16,634.60) to $66,-538.40 ($16,634.60 + 3…

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