FLORIDA INSURANCE GUARANTY ASSOCIATION, INC., APPELLANT,
v.
SHERMAN A. LOVE AND PATRICIA LOVE, 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.
FIGA made a settlement offer to the Loves for $215,000 but claimed the offer contained a typo and should have been $115,000. The trial court denied FIGA's rescission and confirmed the $215,000 settlement. The appellate court reversed, holding that FIGA's unilateral mistake was not the product of inexcusable lack of due care and the Loves had not detrimentally relied on the offer, permitting rescission.
FIGA may rescind its settlement offer because the mistake was not the product of inexcusable lack of due care and the Loves did not show detrimental reliance. Florida law permits rescission of a contract based on unilateral mistake unless the mistake results from inexcusable lack of due care or the other party has detrimentally relied on the contract.
[1] A unilateral mistake in a contract may be grounds for rescission unless the mistake results from an inexcusable lack of due care or the other party has detrimentally reli…
[2] A unilateral mistake in a settlement offer, even if involving some negligence, may not constitute an inexcusable lack of due care sufficient to preclude rescission.
Previewing 2 of 5 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“Florida law permits a party to rescind a contract based on unilateral mistake unless the mistake results from an inexcusable lack of due care or unless the other party has so detrimentally relied on the contract that it would be inequitable to order rescission.”
Establishes the controlling legal standard for rescission based on unilateral mistake.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceSherman and Patricia Love sued for damages from an automobile accident. FIGA assumed the defense when the original insurer became insolvent. After the…
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 Unilateral Mistake cases and more on FLexlaw
NORTHCUTT, Judge.
Sherman Love and his wife Patricia sued various persons and companies for damages resulting from an automobile accident. The insurer for one of the defendant companies became insolvent and Florida Insurance Guaranty Association, Inc. (FIGA) took over the defense of the suit. The Loves’ attorney sent FIGA a settlement demand in the amount of $210,-000. In a letter, FIGA’s senior claims examiner responded:
I have your 11/20/97 letter. We must respectfully reject your $210,000 demand. We want to settle this ease by paying its value. We have round tabled this case. In a final effort to settle, we will offer $215,000 to settle any and all claims against defendants shown in current complaint.
Twelve days later, the Loves’ counsel faxed FIGA an acceptance of the offered $215,000 settlement. The next day, FIGA faxed a reply stating that the offer should have read $115,000. It sought to rescind the' $215,000 offer, asserting that it contained an unintended error. The Loves rejected FIGA’s attempt to rescind, and moved to confirm the settlement. After a hearing on the Loves’ motion, the circuit court entered judgment in their favor for $215,000. FIGA appeals that judgment. We reverse.
Florida law permits a party to rescind a contract based on unilateral mistake unless the mistake results from an inexcusable lack of due care or unless the other party has so detrimentally relied on the contract that it would be inequitable to order rescission. See Maryland Cas. Co. v. Krasnek, 174 So. 2d 541 (Fla.1965); U.S. Alliance Corp. v. Tobon, 715 So. 2d 1122 (Fla. 3d DCA 1998) (applying rule to settlement agreement). In this case, the circuit court found that FIGA’s mistake was the product of an inexcusable lack of due care. We disagree. While FIGA’s error certainly involved some degree of negligence, the evidence was not sufficient to support a finding of an inexcusable lack of due care. See Krasnek (noting that insurer’s mistake in believing policy was still in existence was result of clerical error, bad communication or otherwise; while some negligence was apparent, it did not preclude rescission); Pennsylvania Nat. Mut. Cas. Ins. Co. v. Anderson, 445 So. 2d 612 (Fla. 3d DCA 1984) (holding that while insurer was “almost amusingly inept” when its agent inspected the wrong car on a dealer’s lot and settled the insured’s claim based on this incorrect inspection, its conduct did not demonstrate an inexcusable lack of due care that would prohibit rescission).
We realize that in many respects this case is similar to BMW of North America, Inc. v. Krathen, 471 So. 2d 585 (Fla. 4th DCA 1985), where the court denied rescission, finding that a unilateral mistake in a settlement agreement constituted an inexcusable lack of due care. We distinguish BMW because the evidence there showed an omission of an essential term of the settlement, rather than a clerical error. See Tobon, 715 So. 2d at 1124.
As to the second part of the rescission inquiry, the Loves do not argue, and the circuit court did not find, that they relied on the mistaken settlement offer to their detriment. Accordingly, we reverse the order granting the Loves’ motion to confirm the settlement, and the final judgment entered in their favor. We remand with -instructions to permit FIGA to rescind its offer. Reversed and remanded.
PARKER, C.J., and BLUE, J., Concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Limehouse v. Smith, 797 So. 2d 15 (Fla. 4th DCA 2001)…resight, or the other party has relied upon his performance so that rescission would be inequitable. See Krathen, 471 So. 2d at 588; Krasnek, 174 So. 2d at 543; Graham v. Clyde, 61 So. 2d 656, 657 (Fla.1952); Florida Ins. Guar. Ass’n., Inc. v. Love, 732 So. 2d 456 (Fla. 2d DCA 1999). See also Nordberg v. Green, 638 So. 2d 91 (Fla. 3d DCA 1994)(court’s equitable power does not extend to reformation of a deed because of a bad business decision); Sulkowski v. Sulkowski, 561 So. 2d 416 (Fla. 2d DCA 1990)(trial co…
-
DePRINCE v. Starboard Cruise Servs., Inc., 163 So. 3d 586 (Fla. 3d DCA 2015)…ion did not so change in reliance that it would be unconscionable to set aside the agreement.’ ” 126 So. 3d 1224, 1228 (Fla. 4th DCA 2012) (quoting Stamato v. Stamato, 818 So. 2d 662, 664 (Fla. 4th DCA 2002)); see also Fla. Ins. Guar. Ass’n v. Love, 732 So. 2d 456, 457 (Fla. 2d DCA 1999) (applying the same two-prong test); U.S. Alliance Corp. v. Tobon, 715 So. 2d 1122, 1123 (Fla. 3d DCA 1998) (same); BMW of N. Am., Inc. v. Krathen, 471 So. 2d 585, 588 (Fla. 4th DCA 1985) (same). The two elements in the two-p…
-
Deprince v. Starboard Cruise Servs., Inc., 271 So. 3d 11 (Fla. 3d DCA 2018)…based on unilateral mistake unless the mistake results from an inexcusable lack of due care or unless the other party has so detrimentally relied on the contract that it would be inequitable to order rescission." Fla. Ins. Guar. Ass'n, Inc. v. Love, 732 So. 2d 456, 457 (Fla. 2d DCA 1999). [*20] • Fourth District. "[A] trial court may rescind an agreement based on unilateral mistake if (1) the mistake did not result from an inexcusable lack of due care, and (2) defendant's position did not so change in relianc…
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
- BMW OF N. Am., Inc. v. Krathen, 471 So. 2d 585 (Fla. 4th DCA 1985)
- Md. Cas. Co. v. Krasnek, 174 So. 2d 541 (Fla. 1965)
- Pa. Nat'l Mut. Cas. Ins. Co. v. Anderson, 445 So. 2d 612 (Fla. 3d DCA 1984)
- U.S. Alliance Corp. v. Tobon, 715 So. 2d 1122 (Fla. 3d DCA 1998)