LIFE CARE PONTE VEDRA, INC., ETC., APPELLANT/CROSS-APPELLEE,
v.
H.K. WU, AN INDIVIDUAL AND KATHLEEN WU, ETC., APPELLEES/CROSS-APPELLANTS
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Life Care Ponte Vedra appealed a summary judgment in favor of the Wus regarding interpretation of a continuing care retirement community contract. The central issue was whether the Wus had "occupied" their residence, which determined whether they were entitled to a refund under section 8.A (pre-occupancy termination) or section 8.D (post-occupancy termination) of the contract.
The court reversed the summary judgment, holding that while the contract was ambiguous regarding the meaning of "occupancy," the trial court erred by immediately applying the contra proferentem rule without first considering extrinsic evidence of the parties' intent. The court found undisputed parol evidence existed regarding the parties' intent, including the statutory definition of occupancy, the Wus' own admission that October 31 was the "Occupancy Date," and their moving of possessions into the unit.
[1] A contract's construction against the drafter is a secondary rule of interpretation, applicable only when the parties' intent cannot be ascertained through other means.
[2] When a contract contains an ambiguity, the parties' intent generally becomes a question of fact for the fact-finder, precluding summary judgment.
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“Initially, we agree with Vicar's Landing that the construction against the drafter rule is a secondary rule of interpretation, which should be used only if the parties' intent cannot be ascertained by other means.”
Establishes that contra proferentem is secondary and requires exhaustion of other interpretive methods first
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Join FLexlaw to unlock all legal intelligenceIn July 2011, retired professors H.K. Wu and Kathleen Wu entered into a residence and care contract with Vicar's Landing requiring a $352,000 entrance…
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Life Care Ponte Vedra, Inc. d/b/a Vicar’s Landing (“Vicar’s Landing”), defendant below, appeals portions of a final summary judgment entered in favor of plaintiffs below, H.K. Wu and Kathleen Wu (“the Wus”).1 The case centers on the interpretation of a residence and care contract (“the Contract”) that the parties entered into in 2011. We reverse.
Vicar’s Landing owns and operates a continuing care retirement community that is regulated by chapter 651, Florida Statutes (2013), and the Wus are retired professors. On July 20, 2011, the Wus entered into the Contract with Vicar’s Landing. The Contract was executed during a meeting between the Wus and Tess Crosby, an employee of Vicar’s Landing.
Under the Contract, the Wus were required to pay an entrance fee of $352,000, with ten percent due at signing, and the remainder due “on or before the [o]ccu-pancy [djate, unless otherwise previously agreed to in wrjting.” They also agreed to pay a “non-refundable, non-interest bearing second-member fee.” Additionally, the *190Wus were required to pay a monthly service fee of $5,733 per month.
That same day, the Wus also executed a separate agreement with Vicar’s Landing (“the Incentive Agreement”). Under the Incentive Agreement, the total entrance fee was due on October 20, 2011, and the Wus’ monthly service fee would commence on October 20, 2011. The Incentive Agreement provides that the Wus’ monthly fee would be only half of that required by the Contract “as long as [the unit] is unoccupied.”2
Thereafter, upon the Wus’ request, Vicar’s Landing agreed to extend the October 20, 2011 deadline to October 31, 2011. In an email to a Vicar’s Landing employee, the Wus explained: “According to our understanding, full payment to Vicar’s Landing of our Entrance Fee balance is expected on Monday, October 31, 2011, known in the contract as the ‘Occupancy Date.’” Accordingly, on October 31, 2011, the Wus paid the remaining balance on the entrance fee, the entire second member fee, and the first monthly service payment. Taking advantage of the Incentive Agreement, the Wus did not move into the unit and paid, only half of the monthly service fee. Although the Wus did not physically occupy the unit during this time, they did move certain possessions into it, and Vicar’s Landing was unable to market the unit to prospective members.
The Wus continued to pay the monthly service fee until April 26, 2012, when they informed Vicar’s Landing that they would be terminating the Contract. The Wus demanded to receive a refund of the entire entrance fee in accordance with section 8.A of the Contract, which provides: “Termination Prior to Occupancy. If you terminate this Contract prior to the date you occupy your Residence ... you will be entitled to a reimbursement of any monies paid, less a processing fee of four (4%) of the Entrance Fee....”
By contrast, Vicar’s Landing contended that the refund of the entrance fee was governed by section 8.D of the Contract, which provides:
Refund of Entrance Fee After Occupancy.
After termination of this Contract in accordance with Section 8.B., we will refund an amount equal to the Entrance Fee (without interest), minus an amount equal to the sum of (a) two percent (2%) per month for each of the first forty-eight (48) months during which you occupied your Residence, plus (b) a four percent (4%) processing fee.
Although the Contract does not define the words “occupy” or “occupancy,” section 7.A defines “Occupancy Date” as follows:
Unless the move-in period is extended by Vicar’s Landing in its sole discretion, you must assume occupancy within 60 days after executing this Contract and paying the ten percent (10%) deposit or first installment of the Entrance Fee or within sixty (60) days after the apartment is vacated, whichever occurs later. Your financial obligations under the Contract will begin when you assume occupancy or at the end of the sixty (60) day move-in period, whichever occurs first. In any event, you shall not be required to move into Vicar’s Landing earlier than seven (7) days following the date you executed this Contract and *191paid the first installment of the Entrance Fee.
Vicar’s Landing issued a refund to the Wus pursuant to section 8.D of the Contract. Since the parties could not agree about which section applied, the Wus filed the instant breach of contract action, seeking to recoup the difference between what they claimed they were owed under section 8.A and what Vicar’s Landing paid them under section 8.D. At summary judgment, the trial court found that the language contained in the Incentive Agreement, which included the terms “unoccupied” and “occupy,” created an ambiguity, because the word “occupy” in the Incentive Agreement meant “the equivalent of moving in or assuming residency at [Vicar’s Landing].” The trial court further ruled that the ambiguous language must be interpreted against the drafter — Vicar’s Landing — and found that “the term ‘occupancy or ‘occupy5 used in section 8 of the Contract, is equivalent to moving into or assuming residency at Vicar’s [Landing].” Vicar’s Landing timely appealed.
Our review is de novo. See, e.g., Wash. Nat’l Ins. Corp. v. Ruderman, 117 So.3d 943, 948 (Fla.2013); Volusia Cnty. v. Aberdeen at Ormond Beach, L.P., 760 So.2d 126, 130 (Fla.2000).
Initially, we agree with Vicar’s Landing that the construction against the drafter rule is a secondary rule of interpretation, which should be used only if the parties’ intent cannot be ascertained by other means. See, e.g., DSL Internet Corp. v. TigerDirect, 907 So.2d 1203 (Fla. 3d DCA 2005); see also In re Standard Jury Instructions—Contract & Bus. Cases, 116 So.3d 284, 318 (Fla.2013) (“This instruction endeavors to explain to the jury that this principle should be secondary to the consideration of other means of interpretation, principally the consideration of parol evidence that may explain the parties’ intent at the time they entered into the contract.” (citing W. Yellow Pine Co. v. Sinclair, 83 Fla. 118, 90 So. 828, 831 (1922))). The trial court erred when it immediately interpreted the Contract against the drafter without considering any other evidence of the parties’ intent.3
Additionally, the trial court erred in failing to consider extrinsic evidence. As a general rule, if a contract is ambiguous, the parties’ intent becomes a question of fact for the fact-finder, precluding sum*192mary judgment. See, e.g., Berkowitz v. Delaire Country Club, Inc., 126 So.3d 1215, 1219 (Fla. 4th DCA 2012). However, a contract may be interpreted as a matter of law when the ambiguity can be resolved by undisputed parol evidence of the, parties’ intent. Decoplage Condo. Ass’n, Inc. v. Deco Props. & Invs., Inc., 971 So.2d 860 (Fla. 3d DCA 2007).
Here, we agree with the trial court that the Contract was ambiguous as to the meaning of occupancy, but believe that the court should have considered extrinsic evidence of the parties’ intent.4 For instance, there was evidence that the parties intended the statutory definition of “occupying” to control.5 Additionally, the Wus specifically admitted in an email that they understood October 81 to be the “Occupancy Date.” Furthermore, the Wus moved personal possessions into their unit. In sum, we find the trial court erred in granting summary judgment and, therefore, reverse.
REVERSED.
TORPY, C.J. and SAWAYA, J., concur.
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Haggin v. Allstate Invs., Inc., 264 So. 3d 951 (Fla. 4th DCA 2019)…Levine, 216 So. 3d 711, 715 (Fla. 4th DCA 2017). As a general rule, only if the contract is ambiguous will the parties’ intent become “a question of fact for the fact-finder, precluding summary judgment.” Life Care Ponte Vedra, Inc. v. H.K. Wu, 162 So. 3d 188, 191-92 (Fla. 5th DCA 2015). However, if the agreement is unambiguous, then the plain language of the contract governs and there is no need for parol evidence of the parties’ intent. See Vocelle & Berg, L.L.P. v. IMG Citrus, Inc., 125 So. 3d 84…
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Harkless v. Laubhan, 219 So. 3d 900 (Fla. 2d DCA 2016)…t-finder, precluding summary judgment,” rather than the exception that “a contract may be interpreted as a matter of law when the ambiguity can be resolved by undisputed parol evidence of the parties’ intent.” Life Care Ponte Vedra, Inc. v. H.K. Wu, 162 So. 3d 188, 191-92 (Fla. 5th DCA 2015); see also Centennial Mortg., Inc. v. SG/SC, Ltd., 772 So. 2d 564, 566 (Fla. 1st DCA 2000) (“Contract interpretation is for the court as a matter of law, rather than the trier of fact, only when the agreement is totally un…
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5730 Lake Underhill, LLC v. Smith-Horner, LLP, 179 So. 3d 392 (Fla. 5th DCA 2015)…court erred in failing to construe the provision of the easement against the drafter of the instrument. We affirm as to this issue because the evidence introduced was sufficient to resolve the ambiguities. See Life Care Ponte Vedra, Inc. v. H.K. Wu, 162 So. 3d 188, 191 (Fla. 5th DCA 2015) ("[T]he construction against the drafter rule is a secondary rule of interpretation, which should be used only if the parties’ intent cannot be ascertained by other means.”).…
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 (14 total)
- Volusia Cnty. v. Aberdeen AT Ormond Beach, L.P., 760 So. 2d 126 (Fla. 2000)
- Powertel, Inc. v. Bexley, 743 So. 2d 570 (Fla. 1st DCA 1999)
- Gainesville Health Care Ctr., Inc. v. Weston, 857 So. 2d 278 (Fla. 1st DCA 2003)
- Wash. Nat'l Ins. Corp. v. Sydelle Ruderman, 117 So. 3d 943 (Fla. 2013)
- ACE Elec. Supply Co. v. Terra Nova Elec., Inc., 288 So. 2d 544 (Fla. 1st DCA 1973)
- W. Yellow Pine Co. v. Sinclair, 83 Fla. 118 (Fla. 1922)
- In re Standard Jury Instructions-Contract & Bus. Cases, 116 So. 3d 284 (Fla. 2013)
- Woodson v. State, 765 So. 2d 836 (Fla. 2d DCA 2000)
- Berkowitz v. Delaire Country Club, Inc., 126 So. 3d 1215 (Fla. 4th DCA 2012)
- Beach St. Bikes, Inc. v. Bourgett's Bike Works, Inc., 900 So. 2d 697 (Fla. 5th DCA 2005)