BRIAN KOSLOW, APPELLANT,
v.
ROY S. SANDERS, APPELLEE
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Koslow appealed the trial court's denial of his motion to transfer venue from Collier County to Broward County in a breach of contract action. The appellate court reversed, holding that venue was proper in Broward County where Koslow resided because the contract involved an unspecified amount requiring an accounting and declaration, not a liquidated debt, and the alleged breach would have occurred where Koslow performed his duties.
Venue was proper in Broward County. The trial court erred in applying the place-of-payment rule for debtor-creditor relationships, which applies only when a liquidated debt for a specified sum exists. Instead, the general breach of contract venue rule applies: a cause of action accrues where the breach occurs, and here the breach would have occurred in Broward County where Koslow was obligated to perform his administrative duties.
[1] Venue for a breach of contract action is proper where the breach of contract occurs, which is typically where the defaulting party fails to perform an agreed-upon act.
[2] The rule that payment is due where the creditor resides applies only when a debtor-creditor relationship exists and the promise sued upon is for a specified sum of money.
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“A cause of action on a contract accrues for venue purposes where the breach of that contract occurs, and if a contract involves performance, the breach occurs where the defaulting party fails to perform an act that it has agreed to do.”
Establishes the governing rule for determining venue in breach of contract actions based on where the breach occurred.
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Join FLexlaw to unlock all legal intelligenceSanders sued Koslow, Waltzer, and Castro for breach of an agreement to share commissions on real estate transactions in Panama. The complaint sought a…
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Brian Koslow appeals the order denying his amended motion to dismiss or transfer venue from Collier County, Florida, to Broward County. We agree with Koslow that venue is proper in Broward County where he resides, and accordingly, we reverse. Roy E. Sanders sued Koslow, David Waltzer, and Kevin Castro alleging that they breached an agreement to share in commissions earned on the purchase and sale of real estate located in Panama. The complaint also sought an accounting and a declaration of the amount owed to Sanders. The trial court dismissed the action against Waltzer and Castro for lack of personal jurisdiction leaving Koslow as the sole defendant. Koslow, who was named only in the counts for breach of contract and for declaratory relief, moved to dismiss or transfer the action for improper venue arguing that venue was proper in Broward County where he resided. Sanders countered that venue was proper in Collier County where he resided because that is where any payments owed to him under the contract would be due. The trial court rejected Koslow’s argument after finding that the action was for payment of money and therefore, the cause of action arose in Collier County where Sanders resided and the payments would be due.
In finding that venue was proper in Collier County, the trial court relied on the venue rule applicable to claims for breach of a contract to pay money. Where a contract involves the payment of money and no place of payment is specified in the contract, payment is due where the creditor resides. James A. Knowles, Inc. v. Imperial Lumber Co., 238 So.2d 487 (Fla. 2d DCA 1970). However, this rule only applies when a debtor-creditor relationship exists between the plaintiff and defendant and the promise sued on is for the payment of a specified amount of money. Id. at 489. Neither Koslow nor the other defendants promised to pay Sanders a specified sum of money. In fact, the complaint seeks an accounting and declaration of the amount owed to Sanders. Accordingly, the trial court erred when it concluded that the place of payment rule applied. See Morales Sand & Soil, L.L.C. v. Kendall Props. & Invs., 923 So.2d 1229, 1232 (Fla. 4th DCA 2006) (holding that where there is no liquidated debt involved the place of payment venue rules do not apply and the court must look to the allegations of the complaint to determine where the cause of action accrued and where venue lies).
Rather than rely on the venue rule governing debtor-creditor relationships, the trial court should have applied the rule governing actions for breach of contract. *39“A cause of action on a contract accrues for venue purposes where the breach of that contract occurs, and if a contract involves performance, the breach occurs where the defaulting party fails to perform an act that it has agreed to do.” Speedling, Inc. v. Krig, 378 So.2d 57, 58 (Fla. 2d DCA 1979). See Precision Software, Inc. v. Gauthier, 605 So.2d 592, 594 (Fla. 2d DCA 1992). Here, Sanders alleged that Koslow breached the parties’ agreement, but the complaint contains no indication of how he breached it or where the breach occurred. The only duty Koslow had under the parties’ agreement was to “handle all administrative forms and related details for sales made by Sanders and his representatives at no charge to Sanders.” Thus, if Koslow did in fact breach the agreement by failing to perform those duties, it would have occurred in Broward County where he resides. See Precision, 605 So.2d at 594. We therefore reverse the trial court’s order and remand with directions that this action be transferred to Broward County.
Reversed and remanded with instructions.
FULMER and WHATLEY, JJ, Concur.
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Am. Vehicle Ins. Co. v. Olive Goheagan, 35 So. 3d 1001 (Fla. 4th DCA 2010)…of action on a contract accrues for venue purposes where the breach of that contract occurs, and if a contract involves performance, the breach occurs where the defaulting party fails to perform an act that it has agreed to do.’ ” Koslow v. Sanders, 4 So. 3d 37, 38 (Fla. 2d DCA 2009) (quoting Speedling, Inc. v. Krig, 378 So. 2d 57, 58 (Fla. 2d DCA 1979)). In Oliver v. Severance, 542 So. 2d 408, 409 (Fla. 1st DCA 1989), Severance obtained insurance through Oliver, who did business in Clay County. Severance…
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Fla. Gamco, Inc. v. Gale Fontaine, 68 So. 3d 923 (Fla. 4th DCA 2011)…for venue purposes where the breach of that contract occurs, and if a contract involves performance, the breach occurs where the defaulting party fails to perform an act it has agreed to do.’”” Goheagan, 35 So. 3d at 1003 (quoting Koslow v. Sanders, 4 So. 3d 37, 38 (Fla. 2d DCA 2009)). Specifically regarding the allegations of the breach of contract with DAV 18, Mirabella testified that DAV 18 is located in Manatee County, not Broward. If there was a default on the contract, it would have either accrued in…
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RJG Env't, Inc. v. State Farm Fla. Ins. Co., 62 So. 3d 678 (Fla. 2d DCA 2011)…troltec, Inc., 561 So. 2d 1334 (Fla. 5th DCA 1990) (rejecting assertion that damages were liquidated simply because a fixed sum was demanded by the complaint). The debtor-creditor rule does not apply when damages are unliquidated. Koslow v. Sanders, 4 So. 3d 37, 38 (Fla. 2d DCA 2009); Dep’t of Transp. v. Cone & Graham, Inc., 884 So. 2d 224, 226 (Fla. 2d DCA 2004); Hacienda Villas, Inc. v. MIA Consulting Grp., Inc., 47 So. 3d 848, 849-50 (Fla. 3d DCA 2010); PDM Bridge Corp. v. JC Indus. Mfg., 851 So. 2d 289…
Previewing 3 of 6 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- James A. Knowles, Inc. v. Imperial Lumber Co., Inc., 238 So. 2d 487 (Fla. 2d DCA 1970)
- Speedling, Inc. v. Harold "Andy" Krig, 378 So. 2d 57 (Fla. 2d DCA 1979)
- Precision Software, Inc. v. Gauthier, 605 So. 2d 592 (Fla. 2d DCA 1992)
- Morales Sand & Soil, L.L.C. v. Kendall Props. & Invs., 923 So. 2d 1229 (Fla. 4th DCA 2006)