WALTER EUGENE ARMSTRONG AND CAMELOT MOTOR LODGE AND INN CORPORATION, A DELAWARE CORPORATION, APPELLANTS,
v.
JAMES W. PIATT AND ANITA M. PIATT, HIS WIFE, APPELLEES
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In this interlocutory appeal, the Fourth District Court of Appeal reviewed discovery orders requiring defendants to produce corporate books and records in a case where plaintiffs claim they are entitled to a motel franchise and half ownership of the franchise business. The court held that discovery regarding accounting matters must be deferred until the plaintiff establishes their preliminary right to an accounting.
Discovery regarding accounting matters must be deferred until the preliminary issue of the right to an accounting is settled. Therefore, orders requiring production of minute books, stock transfer books, and books of account (items 1, 2, and 5) were reversed, while orders for other discovery (correspondence, brochures, and specifications) were affirmed.
“discovery as to an accounting must be deferred until the preliminary issue of the right to the accounting is settled”
Establishes the key legal principle governing when accounting discovery may be pursued, drawn from Charles Sales Corporation v. Rovenger
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Join FLexlaw to unlock all legal intelligencePlaintiffs owned a motel and claimed they entered into an oral agreement with defendant Armstrong whereby they would furnish plans, specifications, an…
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Appellants (defendants) by interlocutory appeal seek review of orders requiring them to produce certain documents, books, records and papers for inspection and copying in an action brought by the appellees (plaintiffs) for specific performance, in-junctive relief and an accounting.
The complaint alleges the plaintiffs and defendants both to be engaged in the motel business with the plaintiffs owning a motel and the defendants in the business of selling motel franchises.
Plaintiffs claim they entered into an oral agreement with the Defendant-Armstrong whereby, in consideration of their furnishing him with plans, specifications, trade names and slogans and other services, they would receive a motel franchise from defendants and would share equally in the ownership of the franchise business which plaintiffs allege is carried on through the medium of the defendant, a Delaware corporation.
The permanent relief sought by the plaintiffs is specific performance of the contract by the defendants, recognition to be entitled to one-half of the capital stock of the defendant, a Delaware corporation, an accounting of the assets, liabilities, income and disbursement of said defendant, and an appropriate order directing payment of one-half of all dividends heretofore paid and such other sums as are properly due plaintiffs as the owners of one-half of the stock.
Defendants answered denying that a binding and enforceable oral agreement had been entered into by and between the parties and generally denied plaintiffs’ entitlement to relief. Plaintiffs subsequently filed a motion to produce resulting in the orders now the subject matter of this appeal.
The books and records required of the defendants to produce are as follows:
“1. Minute books, stock issue and transfer books, and books of account of the Defendant, CAMELOT MOTOR LODGE AND INN CORPORATION, a Delaware corporation.
“2. Minute books, stock issue and transfer books, and books of account of CAMELOT MOTOR LODGE, INC., a Florida corporation.
“3. Correspondence from Defendants, WALTER EUGENE ARMSTRONG and CAMELOT MOTOR LODGE AND INN CORPORATION, a Delaware corporation, to prospective franchise purchasers, in which the Defendants, or their agents, servants or employees, advised said prospective purchasers of the availability for inspection of the Camelot Motor Lodge and Inn in North Palm Beach, Florida, owned by Plaintiffs.
“4. Brochures, pamphlets and other advertising media prepared by and/or distributed and used by the Defendant, CAMELOT MOTOR LODGE AND INN CORPORATION, a Delaware corporation.
“5. Minute Books, stock issue and transfer books and books of account of any subsidiary corporation or associate corporation of Defendant, CAMELOT MOTOR LODGE *832AND INN CORPORATION, a Delaware corporation.
“6. Plans and specifications of the Camelot Motor Lodge in North Palm Beach, Florida, owned by the Plaintiffs.”
Defendants contend the plaintiffs are prematurely seeking discovery as to items of accounting before it has been established that they are entitled to an accounting.
In Charles Sales Corporation v. Rovenger, Fla.1956, 88 So.2d 551, the Supreme Court of Florida set forth that discovery as to an accounting must be deferred until the preliminary issue of the right to the accounting is settled. This case has been followed in Cay Construction Co. v. Conlee Construction Company, Fla.App. 1967, 200 So.2d 563; Drucker v. Martin, Fla.App.1963, 157 So.2d 435; Cooper v. Fulton, Fla.App.1959, 107 So.2d 798. See Zenith Radio Corporation v. Dictograph Products Co., Inc., D.C.D.Del.1947, 6 F.R. D. 597, and the numerous federal cases in accord, cited in 4 Moore’s Federal Practice, § 26.18, p. 1229, n. 2.
Accordingly the orders requiring the defendants to produce the books and records as set forth above in numbered paragraphs 1, 2 and 5 are reversed; in all other aspects the orders are affirmed.
Affirmed, in part, and reversed, in part.
ANDREWS, J., concurs.
\
WALDEN, C. J., dissents, with opinion.
(dissenting).
I respectfully dissent from that part of the majority opinion which reverses a portion of the order appealed.
The iteflis requested in the motion to produce were sufficiently relevant to the causes of action, aside from accounting relief, as to warrant the entry of the trial court’s order requiring their production. Fla.R.Civ. P. 1.21(b), 1954, 30 F.S.A.; Cooper v. Fulton, Fla.App. 1960, 117 So.2d 33, 83 A.L.R.2d 297.
We here were not present when the motion was argued before the trial court, and it is my opinion from the appellate presentment that no error, abuse of discretion or recognizable prejudice to appellants has been demonstrated.
Overseeing and ruling upon objections to discovery devices is a vexing and ever increasing trial court burden. Because of the trial judge’s close familiarity with the cases before him and their administration it seems that he should be accorded wide discretion in the discovery area. For appellate courts to second guess decisions in this field, absent a clear demonstration of harmful error, is' to open Pandora’s Box.
I would affirm the trial court order in toto.
WALDEN, Chief Judge
(dissenting).
I respectfully dissent from that part of the majority opinion which reverses a portion of the order appealed.
The iteflis requested in the motion to produce were sufficiently relevant to the causes of action, aside from accounting relief, as to warrant the entry of the trial court’s order requiring their production. Fla.R.Civ. P. 1.21(b), 1954, 30 F.S.A.; Cooper v. Fulton, Fla.App. 1960, 117 So. 2d 33, 83 A.L.R.2d 297.
We here were not present when the motion was argued before the trial court, and it is my opinion from the appellate presentment that no error, abuse of discretion or recognizable prejudice to appellants has been demonstrated.
Overseeing and ruling upon objections to discovery devices is a vexing and ever increasing trial court burden. Because of the trial judge’s close familiarity with the cases before him and their administration it seems that he should be accorded wide discretion in the discovery area. For appellate courts to second guess decisions in this field, absent a clear demonstration of harmful error, is' to open Pandora’s Box.
I would affirm the trial court order in toto.
Cases With Similar Vibessemantic neighbors from the corpus
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Harris v. Zeesman, 445 So. 2d 680 (Fla. 4th DCA 1984)…f the categories of items sought to be produced, suffice it to say that the trial court’s order fails to implement the foregoing principle. Consequently, on the authority of David v. Tansill, 297 So. 2d 84 (Fla. 4th DCA 1974) and Armstrong v. Piatt, 201 So. 2d 830 (Fla. 4th DCA 1967), we grant the writ of certiorari, quash the order on appeal and direct the trial court to reconsider defendants’ motion in accord with the case authority cited herein. ANSTEAD, C.J., and LETTS and HURLEY, JJ., concur.…
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Maiden v. Carter, 234 So. 2d 168 (Fla. 1st DCA 1970)…f discretion. For the foregoing reasons the judgment appealed is affirmed. CARROLL, DONALD K., Acting C. J., and RAWLS, J., concur. . Rule 1.110, R.C.P., 30 F.S.A. . Quinn v. Phipps, 93 Fla. 805, 113 So. 419. .Armstrong v. Platt, (Fla.App.1967) 201 So. 2d 830; 1 Pla.Jur. 92, 93, Accounts and Accounting. § 17.…
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David v. Tansill, 297 So. 2d 84 (Fla. 4th DCA 1974)…ood v. Brackett, 266 So. 2d 398 (Fla.App.1972); Stanton Investment Company v. Simon, 255 So. 2d 557 (Fla.App.1971); Boyd v. Walker, 251 So. 2d 332 (Fla.App.1971); A-1 Truck Rentals, Inc. v. Vilberg, 222 So. 2d 442 (Fla.App.1969); Armstrong v. Piatt, 201 So. 2d 830 (Fla.App.1967) and cases cited therein. In the instant case, items set forth in numbered paragraphs 2, 3, 4 and 6 could only have relevance as to the amount of any sums that might be due the plaintiff in an accounting and not the issue of the plain…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Charles Sales Corp. v. Rovenger, 88 So. 2d 551 (Fla. 1956)
- Cooper v. Fulton, 107 So. 2d 798 (Fla. 3d DCA 1959)
- Rachelle Enters., Inc. v. City OF Miami Beach, 117 So. 2d 33 (Fla. 3d DCA 1960)
- CAY Constr. Co. v. Conlee Constr. Co., 200 So. 2d 563 (Fla. 4th DCA 1967)
- Drucker v. Martin, 157 So. 2d 435 (Fla. 3d DCA 1963)