RONALD GABOR, APPELLANT,
v.
GABOR & CO., INC. AND AMERICAN RELIANCE INSURANCE COMPANY, APPELLEE; GABOR & CO., INC. AND AMERICAN RELIANCE INSURANCE COMPANY, APPELLANTS, V. FRANK GABOR, APPELLEE

Fla. 3d DCA | 1992-06-02
Nos. 91-1989, 91-2026
Before NESBITT, JORGENSON and LEVY, JJ.
599 So. 2d 737 Florida District Court of Appeal, Third District (1992) Positive Treatment
Cited by 8 cases

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Synopsis

The Florida District Court of Appeal reversed summary judgment on indemnification claims brought by Frank and Ronald Gabor against their employer companies and insurer, holding that the trial court erred by disregarding the court's prior determination that a genuine issue of material fact existed regarding whether the Gabors were acting in their corporate capacities when the underlying events occurred.


Holding

The appellate court held that it was error for the trial court to grant summary judgment on a point previously determined by the appellate court to be unsuitable for summary judgment, as the 'law of the case' doctrine prohibits reconsideration of legal points previously decided on appeal unless unusual circumstances and cogent reasons exist to prevent manifest injustice.


Headnotes

[1] The "law of the case" doctrine dictates that all points of law adjudicated in a prior appeal are binding on subsequent proceedings and are not subject to reconsideration.

[2] An appellate court should only reconsider a point of law previously decided on a former appeal as a matter of grace, not as a matter of right.

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Key Quotes

“an appellate court should reconsider a point of law previously decided on a former appeal only as a matter of grace, and not as a matter of right”

Establishes the fundamental principle that courts should not reconsider previously decided points of law except in unusual circumstances

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Facts & Procedural History

Frank and Ronald Gabor were sued by Sussex Mutual Insurance Company for conspiracy to defraud, tortious interference, and civil theft stemming from th…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

We vacate and remand the order under appeal which grants summary judgment in favor of Frank Gabor, but against Ronald Gabor, on their indemnification claims against American Reliance Insurance Company (American).

Frank Gabor and his wife owned Gabor & Co. (Gabor 1), a Florida general partnership representing insurance companies operating in the State of Florida. The Ga-bors' son, Ronald Gabor, was an employee of Gabor 1. Frank Gabor was a director of American. Gabor 1 represented American and Sussex Mutual Insurance Company (Sussex), both of which are non-Florida insurance companies. The agreement between Gabor 1 and Sussex gave Sussex the right to forty-five days’ notice of any intended sale of Gabor 1, allowing Sussex the opportunity to purchase the business. In 1983, Frank Gabor and his wife sold their business to Gabor & Co., Inc. (Gabor 2), a wholly owned subsidiary of American created for the purpose of purchasing Gabor 1. Ronald Gabor signed a five-year employment contract as President of Gabor 2. Sussex entered into an agency agreement with Gabor 2, identical to its agreement with Gabor 1. Thereafter, Gabor 2 terminated all business with Sussex.

Sussex sued American, Gabor 2, Frank Gabor, and Ronald Gabor for damages resulting from their alleged conspiracy to defraud Sussex of its Florida business, intentional interference with a contractual relationship, and civil theft. Frank and Ronald cross-claimed against American and Gabor 2 for indemnity, alleging that they had been sued as officers and employees of the companies and were therefore entitled to indemnification. American, Gabor 2, and both Gabors moved for summary judgment against Sussex, which was granted by the trial court, and subsequently affirmed by this court in Sussex Mutual Insurance Co. v. Gabor, 568 So. 2d 1004 (Fla. 3d DCA 1990).

Thereafter, the Gabors moved for summary judgment on their indemnity cross-claim against American and Gabor 2, asserting that their successful defense of the Sussex claim entitled them to indemnification from the companies.

The trial court granted the motion and entered a summary judgment in the Ga-bors’ favor on their cross-claims.

This court reversed the order for summary judgment on the indemnification issue, holding that summary judgment was inappropriate because a genuine issue of material fact existed as to whether Frank and Ronald Gabor were acting in their capacities as directors or officers of the corporations during the events which formed the basis of Sussex’s complaint. See Gabor & Co., Inc. v. Gabor, 569 So. 2d 817, 818 (Fla.3d DCA 1990). On remand, American moved for partial summary judgment on the Gabors’ indemnity cross-claims. Thereafter, the trial court entered a new summary judgment in Frank Gabor’s favor, but against Ronald Gabor, on their indemnity cross-claims. The appeals by American and Ronald Gabor followed.

It has long been settled law in Florida that all points of law adjudicated in a prior appeal become the “law of the case,” and are no longer open for discussion or consideration in subsequent proceedings. Strazzulla v. Hendrick, 177 So. 2d 1, 2 (Fla.1965). In Strazzulla, the supreme court clearly stated that “an appellate court should reconsider a point of law previously decided on a former appeal only as a matter of grace, and not as a matter of right,” id. at 4, and noted that exceptions to the “law of the case” doctrine should only be made “in unusual circumstances and for the most cogent reasons — and always, of course, only where ‘manifest injustice’ will result from a strict and rigid adherence to the rule.” Id.; see also, Flinn v. Shields, 545 So. 2d 452 (Fla. 3d DCA 1989).

In the case sub judice, this court had determined in the previous appeal that a genuine issue of material fact existed as to whether Frank and Ronald Gabor acted in their capacities as directors or officers of the corporations during the events which formed the basis of Sussex’s complaint. On remand, the record reflects that the Gabors did not present any evidence different from, or in addition to, the evidence previously presented to the trial court on this point. Applying the “law of the case” doctrine, therefore, it was error for the trial court to enter summary judgment on a point previously determined not amenable to a summary judgment.

Accordingly, the order under appeal is vacated and remanded for further proceedings consistent herewith.


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Citator

Cited By

  • Demetrio J. Perez v. Marti, 770 So. 2d 284 (Fla. 3d DCA 2000)
    …an the facts which could have and should have been before this court in Perez I. Thus, I believe that under the “law of the case” doctrine the trial court’s order was improperly entered in this case and would therefore reverse.2 See Gabor v. Gabor, 599 So. 2d 737, 739 (Fla. 3d DCA 1992)(error for trial court to enter order on a point previously determined because of “law of the case” doctrine); Strazzulla v. Hendrick, 177 So. 2d 1, 4 (Fla.1965)(ex-ception to rule binding parties to “law of case” should never…
  • McCray v. State, 230 So. 3d 495 (Fla. 2d DCA 2017)
    …differently, the scope of the [*499] law of the case is “limited to rulings on questions of law actually presented and considered on a former appeal.” U.S. Concrete Pipe Co. v. Bould, 487 So. 2d 1061, 1068 (Fla. 1983); see also Gabor v. Gabor & Co., 599 So. 2d 737, 738-39 (Fla. 3d DCA 1992); Gibson v. Maloney, 263 So. 2d 632, 635 (Fla. 1st DCA 1972). The applicability of rule 3.212(d)’s conditions was neither raised nor addressed in Petition I. Thus, our disposition in McCray did not foreclose the State from…
  • Hodges v. Marion Cnty., 774 So. 2d 950 (Fla. 5th DCA 2001)
    …in so ruling. “It has long been settled law in Florida that all points of law adjudicated in a prior appeal become the ‘law of the case,’ and are no longer open for discussion or consideration in subsequent proceedings.” Gabor v. Gabor & Co., Inc., 599 So. 2d 737, 738 (Fla. 3rd DCA 1992). Based upon the law of the case doctrine, once the undisputed facts established that the Hodges’ sheds [*952] were not aviaries as defined in Hodges I and that the Hodges were not keeping the birds as part of a home business…

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