ASPEN INVESTMENTS CORPORATION, APPELLANT,
v.
HELEN E. HOLZWORTH, DAVID FRASER, ET AL., APPELLEES
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.
Aspen Investments appealed the trial court's directed verdict in favor of cross-defendant Fraser on Aspen's civil theft and slander of title claims arising from Fraser's unauthorized mortgaging of corporate property. The appellate court reversed, holding that sufficient evidence existed for a jury to consider whether Fraser committed civil theft and that Aspen's settlement with mortgagees did not waive its claims against Fraser.
The directed verdict should be reversed because sufficient evidence existed for a jury to find civil theft, as Fraser's conduct—including obtaining a fraudulent seal, misrepresenting his authority, and appropriating loan proceeds—could support an intent to deprive Aspen of property and appropriate it to his own use. Additionally, Aspen's settlement with mortgagees did not waive its slander of title claim against Fraser, as the settlement agreement explicitly preserved such claims.
[1] A directed verdict is reversible error if there is substantial evidence tending to prove the plaintiff's case.
[2] A contractual relationship does not preclude a civil theft action for fraudulent conversion or embezzlement.
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“It is reversible error to direct a verdict where there is some substantial evidence tending to prove the plaintiff's case.”
Establishes the standard for appellate review of directed verdicts and when reversal is required.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceAspen Investments owned twelve rental properties managed by David Fraser, who had sold his stock to Robert Braun for $320,000 and resigned as an offic…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Fraudulent Conversion cases and more on FLexlaw
STONE, Judge.
The trial court entered a directed verdict in favor of cross-defendant, Fraser, following a jury verdict for cross-plaintiff, Aspen Investments. We reverse. The case began as a mortgage foreclosure. Prior to trial, Aspen settled with the mortgagees by stipulating to the foreclosure but expressly reserved its claims against Fraser. Aspen’s cross-claim was for civil theft and slander of title. The trial court found, as to the civil theft claim, that Aspen failed to prove criminal intent to steal and that a contractual relationship existed between the parties. As to the slander of title claim, the court found that a settlement with the mortgage holders eliminated Aspen’s cross-claim against Fraser. As to damages, the trial court made a finding that Aspen failed to prove the reasonableness of attorney’s fees incurred in defense of the mortgage foreclosure claims.
The evidence, taken most favorably to Aspen, reflects that Robert Braun acquired the Aspen stock from Fraser in connection with a payment of $320,000 to the corporation. Although Fraser initially had a 90-day option, there was direct evidence that the transaction was a completed sale and not a loan. Fraser resigned as director, president, secretary, and treasurer. Braun was the sole officer and director. Aspen was the owner of twelve properties. Fraser, as Aspen’s agent, continued to manage and to collect rent on the 12 units. Although Fraser was interested in reacquiring the units, he had no investment of his own in either Aspen or the units.
Fraser contended that he had authority to mortgage the units to obtain money that Braun owed him. He also asserted that the entire transaction was only as collateral for Braun’s payment to Aspen. There was independent testimony that Fraser acknowledged Braun’s ownership of the corporation and that counsel advised Fraser that encumbering Aspen’s property would be engaging in criminal conduct. We note that Fraser’s option to purchase expired prior to the mortgage loan transactions. Nevertheless, Fraser secretly purchased a second corporate seal and told the lender that he was the president and secretary of Aspen. In addition, Fraser never told Braun of the bank account he opened for the deposit of the loan proceeds. Fraser subsequently transferred these funds to his separate corporation account and then to his personal account. No mortgage payments were ever made.
We recognize that Fraser’s testimony, if believed by the trier of fact, would be consistent with his claim that he had authority. However, this is immaterial in a review of a directed verdict. In Garrahan v. Sea Ray Boats, Inc., 569 So. 2d 518 (Fla. 4th DCA 1990) we stated:
On appellate review, a directed verdict should be affirmed if, in viewing the evidence in a light most favorable to the non-moving party, it appears that the trier of fact could not have reasonably differed as to the establishment of material facts. It is reversible error to direct a verdict where there is some substantial evidence tending to prove the plaintiff’s case.
As to the civil theft claim, a jury could conclude that Fraser committed the acts described with the intent to deprive Aspen of its property and appropriate it to his own use knowing that he was not entitled to do so. See section 812.014(1), Florida Statutes. Although intent may be shown by circumstantial evidence, civil theft must be established by clear and convincing evidence. Section 812.035(7).
Here, the evidence, although conflicting, meets the standard. Cf. Slomowitz v. Walker, 429 So. 2d 797 (Fla. 4th DCA 1983). Fraser asserts that essentially this is a breach of contract claim and that treble damages for civil theft may only be obtained in the absence of a contractual relationship. See Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA), rev. denied, 494 So. 2d 1151 (Fla.1986). However, this court has recognized that the existence of a contractual relationship does not preclude a civil theft action for fraudulent conversion, embezzlement, or similar acts. See Trend Setter Villas of Deer Creek v. Villas on the Green, Inc., 569 So. 2d 766 (Fla. 4th DCA 1990); O’Donnell v. Arcoiries, Inc., 561 So. 2d 344 (Fla. 4th DCA 1990). See also Tinwood, N.V. v. Sun Banks, Inc., 570 So. 2d 955 (Fla. 5th DCA); Masvidal v. Ochoa, 505 So. 2d 555 (Fla. 3d DCA 1987).
With respect to the slander of title claims, the settlement agreement with the mortgage holders provided:
1. The parties to this stipulation intend a compromise and settlement of the litigation between them with no effect on the validity of any claim that either party has or may have against David Fraser. 3. Aspen will voluntarily dismiss all of its pending claims against all the party plaintiffs in all six actions, but not against David Fraser. Aspen will pursue the remainder of the damages it suffered as a result of the wrongful acts of David Fraser directly against David Fraser. 4. Aspen does not concede that the mortgages in dispute are valid. More over, it maintains that David Fraser had no power or authority to encumber the properties owned by Aspen; that he did so dishonestly, and that he unlawfully appropriated the proceeds of the loan and mortgage to his own use to the detriment of Aspen. These claims are more fully set forth in pleadings filed in these cases. These actions shall survive this stipulation and judgment.
7. Aspen and the parties plaintiff expressly intend no waiver of any rights it or they have or may have against David Fraser. Conduct is not held to constitute a waiver unless it does so clearly. Cf. American Somax Ventures v. Tosma, 547 So. 2d 1266 (Fla. 4th DCA 1989). Even though Aspen elected not to continue its contest of the mortgagee claims, that alone does not constitute a waiver of the otherwise valid slander of title claim against Fraser, particularly as the language of the stipulation explicitly provides otherwise. See also Woodgate Dev. Corp. v. Hamilton Inv. Tr., 351 So. 2d 14 (Fla.1977).
Attorney’s fees are recoverable as an element of damages for slander of title. E.g., Bonded Inv. & Realty Co. v. Waksman, 437 So. 2d 162 (Fla. 2d DCA 1983); Susman v. Schuyler, 328 So. 2d 30 (Fla. 3d DCA 1976). In Behar v. Jefferson Nat’l Bank at Sunny Isles, 519 So. 2d 641 (Fla. 3d DCA 1987), rev. denied, 531 So. 2d 167 (Fla.1988), the court stated that the general rule of law is that where the wrongful act of the defendant has involved the claimant in litigation with others or placed him (or her) in such relation with others as makes it necessary to incur expenses to protect his interest, such costs and expenses, including attorney’s fees, should be treated as the legal consequences of the original wrongful act and may be recovered as damages.
The record reflects some evidence of attorney’s fees incurred by Aspen in attempting to remove the cloud and in defense of the mortgagees’ claims. It is undisputed that no objection was raised at the time the evidence was accepted concerning Aspen’s failure to prove the reasonableness of the attorney’s fees incurred.2 We are not concerned with the weight of the evidence that the fees were, in fact, incurred, but only with the cross-plaintiffs’ failure to introduce testimony that the fees incurred were reasonable. Certainly, Fraser was entitled to require that reasonableness be proved as a predicate to admitting the evidence of the fee incurred. Still, Fraser’s failure to object to the evidence on this ground waived any right to have it subsequently considered on a motion for directed verdict. To hold otherwise would allow a party to lure the other side into believing that evidence on a necessary element of proof is before the court by not objecting to its introduction and then permitting that party to subsequently ask the court to disregard that evidence after the opponent has rested.
Additionally, we find no abuse of discretion concerning the trial court’s denial of Aspen’s last minute motion for leave to amend to add a count.
The judgment is reversed. On the face of the trial court order it appears that Fraser’s motion for a new trial was deemed moot by the trial court because of its other rulings. Therefore, upon remand, the new trial motion remains pending. Nothing contained in this opinion shall be construed as limiting the trial court’s own evaluation of the record with respect to the new trial motion.
GARRETT and FARMER, JJ., concur. . Section 812.035(7) which previously applied to "any person," now applies only to the state and its agencies. Section 772.11 presently provides for treble damages upon a showing of clear and convincing evidence of an injury. See also Warren v. Monahan Beaches Jewelry Center, Inc., 548 So. 2d 870 (Fla. 1st DCA 1989).
. We also note that there was proof of other special damages, lost value and lost rentals, in addition to the fees. The plaintiffs’ right to claim these damages does not appear to be questioned.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Martin Cnty. v. Polivka Paving, Inc., 44 So. 3d 126 (Fla. 4th DCA 2010)…bject to the evidence at the time it was accepted, and instead waiting to raise the issue on a motion for directed verdict. In so doing, we limit the scope of the case upon which the contractor primarily relies, Aspen Investments Corp. v. Holzworth, 587 So. 2d 1374 (Fla. 4th DCA 1991). In Aspen, a plaintiff seeking to recover its attorney’s fees introduced testimony of the fees incurred, but did not introduce testimony that the fees incurred were reasonable. Id. at 1377. At the time the evidence was accepted,…
-
Costello v. THE Curtis Bldg. P'ship, 864 So. 2d 1241 (Fla. 5th DCA 2004)…uct must establish clear relinquishment, and while conduct can imply waiver, the conduct relied upon to do so must- make out a clear case of waiver. Waiver does not arise merely from forbearance for a reasonable time. Aspen Inv. Corp., v. Holzworth, 587 So. 2d 1374 (Fla. 4th DCA 1991); Destin Savings Bank v. Summerhouse of FWB, Inc., 579 So. 2d 232 (Fla. 1st DCA 1991). In concluding that the landlord waived her right to argue that the purchase option clause was invalid, the trial court relied upon Wing v. Arn…
-
Fraser v. Sec. & Inv. Corp., 615 So. 2d 841 (Fla. 4th DCA 1993)…ERSEY, Judge. On a cross-claim for slander of title and civil theft, the trial court entered judgment after jury verdict for damages in excess of one million dollars against David Fraser. In an earlier appeal, Aspen Investments Corp. v. Holzworth, 587 So. 2d 1374 (Fla. 4th DCA 1991), this court reversed a post-trial directed verdict for Fraser and remanded to the trial court to consider a pending motion for new trial. From the denial of that motion Fraser has perfected the present appeal. Three points on ap…
Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited (13 total)
- Slomowitz v. E.O. Walker and Geneva Walker, 429 So. 2d 797 (Fla. 4th DCA 1983)
- Murray Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA 1986)
- Woodgate Dev. Corp. v. Hamilton Inv. Tr., 351 So. 2d 14 (Fla. 1977)
- Masvidal v. Ochoa, 505 So. 2d 555 (Fla. 3d DCA 1987)
- Am. Somax Ventures v. Touma, 547 So. 2d 1266 (Fla. 4th DCA 1989)
- Hinley Leonard Washington v. Essie Mae Washington, 548 So. 2d 870 (Fla. 4th DCA 1989)
- Tinwood N.V. v. SUN Banks, Inc., 570 So. 2d 955 (Fla. 5th DCA 1990)
- Myron B. Susman v. Schuyler, 328 So. 2d 30 (Fla. 3d DCA 1976)
- Sami Behar v. Jefferson Nat'l Bank at Sunny Isles, 519 So. 2d 641 (Fla. 3d DCA 1987)
- Trend Setter Villas OF Deer Creek v. Villas ON THE Green, Inc., 569 So. 2d 766 (Fla. 4th DCA 1990)