APACHE GROUP, INC., A DISSOLVED CORPORATION, FORT APACHE MARINE GROUP, INC., A FLORIDA CORPORATION, AND MARC A. OSHEROFF, APPELLANTS/CROSS APPELLEES,
v.
RONALD S. FRIEDMAN, CPA, P.A., AND RONALD FRIEDMAN, APPELLEES/CROSS-APPELLANTS

Fla. 3d DCA | 2006-06-14
No. 3D04-3098
Before WELLS, CORTINAS, and ROTHENBERG, JJ.
935 So. 2d 539 Florida District Court of Appeal, Third District (2006) Positive Treatment
Cited by 2 cases

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Synopsis

In this contract dispute, the trial court awarded Ronald Friedman judgment against Marc Osheroff for breach of promissory notes and personal guarantees totaling $72,213 plus prejudgment interest. On appeal, the Third District Court of Appeal affirmed the judgment but reversed and remanded the prejudgment interest calculation, holding that it should have been computed at the contractual rate of 18% rather than the statutory rate for the period after October 31, 1996.


Holding

The court reversed the prejudgment interest award and remanded for recalculation at the contractual rate of 18%. Because the jury rejected the waiver defense and awarded precisely what Friedman requested, including contractual interest through October 31, 1996, the trial court erred in applying the statutory rate to the post-October 31, 1996 period.


Headnotes

[1] A contractual provision for a specific interest rate on default supersedes the statutory interest rate.

[2] A trial court errs in calculating prejudgment interest at the statutory rate when a contract expressly provides for a different rate.

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Key Quotes

“The record, however, confirms that the jury rejected Osheroff's waiver argument and instead awarded the precise amount requested by Friedman with respect to the one promissory note and both guarantees, including prejudgment interest through October 31, 1996 at the contract rate.”

Establishes that the jury verdict clearly rejected the waiver defense and supported application of the contractual interest rate

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Facts & Procedural History

Friedman sued Osheroff for breach of two promissory notes and two personal guarantees contained in professional services agreements. Both instruments …

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Opinion of the Court
WELLS, Judge.

WELLS, Judge.

After a jury trial in this contract action, Ronald S. Friedman, CPA, P.A. secured a judgment against Marc Osheroff for $72,213 plus prejudgment interest. In this consolidated appeal, Osheroff seeks a new trial claiming that the trial court erred in precluding his proffered expert’s testimony. Osheroff also appeals two separate fee orders that denied his motion for attorney’s fees as the prevailing party on some of the claims raised in Friedman’s Third Amended Complaint, and that awarded attorney’s fees to Friedman pursuant to an offer of judgment under Florida Rule of Civil Procedure 1.442(c)(3), after Friedman prevailed on all of Osheroffs counterclaims. Friedman similarly cross-appeals the trial court’s failure to award him attorneys’ fees as the prevailing party at trial. He also appeals the prejudgment interest award, arguing that it was calculated at the statutory rate when it should have been calculated at the contractual rate expressly agreed upon in the parties’ underlying agreement(s).

We find no merit in any of these points on appeal or cross-appeal other than Friedman’s argument regarding entitlement to prejudgment interest at the contractual rate.

In addition to other claims, Friedman sued Osheroff for breach of two promissory notes and two personal guarantees contained in agreements for professional services. Both the notes and the guarantees expressly provided for the payment of eighteen percent annual interest until fully paid. Osheroff raised waiver as an affirmative defense to these notes and guarantees claiming that Friedman had waived the interest. Prior to trial, the parties stipulated that the trial court would determine the amount of prejudgment interest due to Friedman after October 31, 1996, if he prevailed.

The jury ultimately awarded Friedman $19,849 for breach of one promissory note and $52,364 for breach of at least one guarantee, the latter sum including prejudgment interest calculated at the contract rate through October 31, 1996.

Pursuant to the parties’ agreement, the trial court awarded Friedman prejudgment interest accruing after October 31, 1996, but did so at the statutory rate, rather than the eighteen percent contractual rate, on Osheroff s argument that the jury had been instructed on waiver and that the verdict unquestionably demonstrated a jury finding that Friedman had waived his contractual right.

The record, however, confirms that the jury rejected Osheroffs waiver argument and instead awarded the precise amount requested by Friedman with respect to the one promissory note and both guarantees, including prejudgment interest through October 31, 1996 at the contract rate. The court below therefore erred in failing to calculate the prejudgment interest due after October 31, 1996, at the contractual rate.

Accordingly, we reverse the prejudgment interest award and remand for a recalculation at the contract rate. See WPB, Ltd. v. Supran, 720 So. 2d 1091, 1093 (Fla. 4th DCA 1998) (noting that statutory interest is given “where the contract is silent on the rate of interest that applies in the event of a default”).

Affirmed in part, reversed in part, and remanded with instructions.


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Citator

Cited By

  • Republic Servs., Inc. v. Calabrese, 939 So. 2d 225 (Fla. 5th DCA 2006)
    …nt on the matter. As the parties addressed this matter, their intention should be given effect. See Maryland Cas. Co. v. Fla. Produce Distribs., Inc., 498 So. 2d 1383 (Fla. 5th DCA 1986); see also Apache Group, Inc. v. Ronald S. Friedman, CPA, P.A., 935 So. 2d 539 (Fla. 3d DCA 2006). Accordingly, we affirm the final judgment in all respects except for the calculation of interest. We reverse the amount awarded as interest to the appellee, and remand for recalculation of interest at the contract rate in accord…

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