CLARIDGE H, LLC, APPELLANT,
v.
CLARIDGE HOTEL, LC, INTERVENTO INVESTMENTS, LTD., A BRITISH VIRGIN ISLANDS CORPORATION, AND STARCOVE LIMITED, A BRITISH VIRGIN ISLANDS CORPORATION, APPELLEES

Fla. 3d DCA | 2011-08-03
No. 3D10-1450
Before SUAREZ and LAGOA, JJ., and SCHWARTZ, Senior Judge.
66 So. 3d 1049 Florida District Court of Appeal, Third District (2011)

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Holding

A directed verdict cannot be granted before the non-moving party has had an opportunity to present its case-in-chief, as doing so denies due process.


Headnotes

[1] A directed verdict cannot be entered until each party has had an opportunity to present relevant evidence in its case in chief.

[2] Granting a directed verdict in favor of a plaintiff before the defendant has presented its case in chief constitutes a denial of due process.

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Facts & Procedural History

A seller sued a buyer for breach of contract after the buyer refused to close a hotel purchase. The buyer counterclaimed for fraudulent inducement bas…

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Opinion of the Court
SUAREZ, J.

SUAREZ, J.

Claridge H, LLC, appeals from a directed verdict in favor of plaintiff below Claridge Hotel, LC, et al. impermissively granted after the plaintiff rested and prior to the defendant having an opportunity to present any evidence. We reverse and remand for a new trial.

Claridge Hotel, LC, the seller below, filed suit against the buyer, Claridge H, LLC, for breach of contract and declaratory relief arising out of the buyer’s refusal to consummate an agreement to purchase the Claridge Hotel on Miami Beach. The buyer, Claridge H, LLC, filed a counterclaim for breach of contract and fraudulent inducement arising from that contract.1 The two issues that were to be determined at the scheduled two-day bench trial were (1) whether the seller breached the contract by refusing to provide loan documents for certain unsecured loans; and (2) whether the seller’s website representation, stating that the hotel rooftop terrace could hold 120 people for events, amounted to fraudulent inducement. At the end of the first day of trial and at the close of plaintiff/seller’s case in chief, the plaintiff moved for a directed verdict. The court granted the plaintiffs motion for a directed verdict, determining that the seller’s disclosures were sufficient to close the sale, and that the issue of the terrace rooftop capacity was not material to a $12 million dollar purchase. The defendant buyer was not given any opportunity to present its case in chief, although it had witnesses present in court who would offer opposing evidence and testimony regarding the fraudulent inducement issue.

We find that the trial court’s determination of the disputed issues in plaintiffs favor — without first giving the defendant any opportunity to present its case— was error. Numerous cases hold that a directed verdict cannot be entered until each party has an opportunity to present relevant evidence in its case in chief. See, e.g., Searock v. Babcock, 667 So.2d 853, 853 (Fla. 3d DCA 1996) (“[T]he trial court erred in granting a directed verdict for [plaintiff] and in depriving [defendant] of the ability to present its case.... ‘[Doing] so would constitute a denial of due process of law.’ ”); Sheldon Greene & Assocs., Inc. v. Williams Island Assocs., 550 So.2d 1142 (Fla. 3d DCA 1989); Trio Towing Serv., Inc. v. Murrell, 325 So.2d 21, 22 (Fla. 3d DCA 1975) (“[A]fter finding error in the directed verdict for the defendants in the earlier proceeding we made a mistake in directing the trial judge to direct a verdict for the plaintiff ... we should have returned the matter to the trial court for further proceedings in accordance with the rules of civil procedure and ordinary due process.”); Pelle v. Diners Club, 287 So.2d 737, 738 (Fla. 3d DCA 1974) (holding that *1051it was a violation of due process to grant a directed verdict in favor of plaintiff before the defendant had an opportunity to present his case-in-chief);2 see also Fla. R. Civ. P. 1.480.

The appellee relies on Aouate v. Hotel Europe, Inc., 792 So.2d 596 (Fla. 3d DCA 2001), for the proposition that the directed verdict was not granted in error. That case is clearly distinguishable. In Aouate, also a breach of contract action, the trial court granted a directed verdict in the plaintiffs favor before the defendant had completed its case in chief. The defendant in that case was allowed to call several witnesses; the only evidence the defendant was not allowed to present, however, was deemed irrelevant parole evidence relating to the unambiguous terms of the contract. Id.

In the instant case, the plaintiff/seller called an expert witness to demonstrate that the rooftop terrace capacity was immaterial to the purchase of a $12 million hotel. The trial court should have allowed defendant/buyer to call its own witnesses and offer its own evidence to argue that the rooftop terrace capacity issue was, indeed, material to the contract. As the appellant was not given any opportunity to call witnesses or to present any evidence regarding the fraudulent inducement issue, the appellant was effectively denied due process.

We therefore reverse the directed verdict and remand for a new trial in which both parties are afforded the opportunity to present evidence and argument going to the disputed issues.

Reversed, and remanded for a new trial.


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