NOVA FLIGHT CENTER, INC., APPELLANT,
v.
WILLIAM VIEGA AND VICTOR JOHNSON, APPELLEES
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Nova Flight Center sued officers of its subtenants for civil theft and conspiracy to defraud, but the trial court dismissed the civil theft claim based on an underlying contractual relationship. The appellate court reversed, holding that civil theft claims can proceed despite a contractual relationship when the alleged wrongdoing involves criminal acts beyond the scope of the contract.
The court reversed the judgment on the pleadings and held that a civil theft treble damages action can be maintained despite an underlying contractual relationship when the alleged criminal conduct—such as theft of property and conspiracy to defraud—is not contemplated by or authorized under the contract.
[1] A civil theft treble damage suit may be maintained even if the parties have an underlying contractual relationship, provided the alleged theft is not merely a breach of c…
[2] The existence of a contract between parties does not preclude a civil theft claim when the alleged actions, such as embezzlement or the unauthorized use of property, go b…
Previewing 2 of 4 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“that such trebling is only warranted when there is no contractual relationship between the parties”
The trial court's reliance on Rosen for the proposition that treble damages require no contractual relationship
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Join FLexlaw to unlock all legal intelligenceNova subleased airport facility space to Eagle Flight Center and Aero Supply, whose officers Viega and Johnson were. Nova's principals orally contract…
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HARRIS, Judge.
Nova Flight Center, Inc. (Nova) appeals from a judgment on the pleadings holding that a civil theft treble damage suit cannot be maintained if the parties have an underlying contractual relationship. Under the facts of this case, we reverse.
Nova subleased a portion of its facility at Daytona Regional Airport to Eagle Flight Center, Inc. (Eagle) and Aero Supply, Inc. (Aero). Appellees Viega and Johnson were officers and stockholders of both subtenants. The principals of Nova subsequently moved out of state and orally contracted with Eagle to manage and oversee the Nova operation. Eagle was to collect rent and revenue, pay expenses, and remit the remaining proceeds to Nova along with a monthly accounting. The relationship did not go well and Nova sued Eagle for breach of contract. Nova also sued Viega and Johnson for conspiracy to defraud by rewiring electrical lines in order to improperly bill Nova for electricity used by Eagle and Aero and for theft of avionics and engine parts from Nova’s aircraft.
The trial court reasoned that all of the alleged improper actions evolved through the various contractual relationships and, relying on the rationale of Rosen v. Marlin, 486 So. 2d 623 (Fla. 3rd DCA 1986), rev. denied, 494 So. 2d 1151 (Fla.1986), granted a judgment on the pleadings in favor of appellees on the civil theft count.
It is true that Rosen did hold:
... that recovery of damages for breach of contract will not support a trebling of such damages pursuant to the provisions of Section 812.035(7), Florida Statutes (Supp.1984), that such trebling is only warranted when there is no contractual relationship between the parties.
Rosen at 624.
In Rosen, however, the claimed damages resulted from an alleged breach of contract.
In the case at bar, the contract was merely incidental. The contract explained how Viega and Johnson obtained access to the premises and property of Nova but it did not contemplate or authorize either the rewiring of the electric lines to provide “free” electricity to Eagle and Aero or the theft of Nova’s property. The case at bar is more like Masvidal v. Ochoa, 505 So. 2d 555 (Fla. 3rd DCA 1987) where the court held:
Moreover, we are not persuaded by the argument that no civil theft or conversion occurred in this case because there, was a contractual relationship between the parties. The evidence shows a classic embezzlement by the defendant of an escrow fund set up under the subscription agreement between the parties. That is, the defendant lawfully obtained possession of the plaintiffs funds to set up the escrow fund and thereafter converted the funds for his own use. This being so, the defendant, by his actions, committed an embezzlement, a civil theft and a conversion as well as a breach of contract ... We do not read Rosen v. Marlin ... to preclude this result because there, unlike this ease, the parties had a legitimate contractual dispute over the amount of a debt owed, and no embezzlement whatever occurred in that case.
Masvidal, at 556.
Nova has not alleged merely a case of “civil conversion” (See City of Cars, Inc. v. Simms, 526 So. 2d 119 (Fla. 5th DCA 1988) but rather a case of criminal theft under section 812.014, Florida Statutes, 1987. Nova alleged that Johnson and Viega conspired to and did commit theft of its electricity, avionics and engine parts. The fact that there was a sublease of premises and a management agreement m existence when they allegedly committed these clearly criminal acts will not prevent the civil theft treble damage action.
REVERSED and REMANDED.
DANIEL, C.J., and GOSHORN, J., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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Tinwood N.V. v. SUN Banks, Inc., 570 So. 2d 955 (Fla. 5th DCA 1990)…reach of contract action but does not become a theft which is actionable under séction 812.035. However, the mere existence of a contractual relationship between parties does not preclude an action for civil theft. Nova Flight Center, Inc. v. Viega, 554 So. 2d 626 (Fla. 5th DCA 1989). An embezzlement whereby the defendant lawfully obtains possession of the plaintiffs funds and thereafter converts said funds to his own use will justify an action for civil theft. Masvidal v. Ochoa, 505 So. 2d 555 (Fla. 3d DCA 1…
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Nerbonne, N.V. v. Lake Bryan Int'l Props., 689 So. 2d 322 (Fla. 5th DCA 1997)…se will justify an action for civil theft. Id. at 961. This court held that the mere existence of a contractual relationship between the parties does not preclude actions for civil theft and conversion. Id., citing Nova Flight Center, Inc. v. Viega, 554 So. 2d 626 (Fla. 5th DCA 1989) (existence of lease contract does not bar civil theft claim that lessee’s principals stole electricity and personalty from lessor). Other recent cases have interpreted the economic loss rule as not barring actions for fraud in th…
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O'Donnell v. Arcoiries, Inc., 561 So. 2d 344 (Fla. 4th DCA 1990)…ng a right to treble damages for embezzlement or similar allegations that could form a basis for a criminal theft charge under Florida Statutes Section 812.014. See Zinn v. Zinn, 549 So. 2d 1141 (Fla. 3d DCA 1989); Nova Flight Center, Inc. v. Viega, 554 So. 2d 626 (Fla. 5th DCA 1989); Russo v. Heil Constr. Inc., 549 So. 2d 676 (Fla. 5th DCA 1989). We deem Rosen and Futch to be inapposite. Additionally, the trial court properly computed treble damages by including prejudgment interest as an element of damages.…
Previewing 3 of 8 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Murray Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA 1986)
- Masvidal v. Ochoa, 505 So. 2d 555 (Fla. 3d DCA 1987)
- City OF Cars, Inc. v. Simms, 526 So. 2d 119 (Fla. 5th DCA 1988)