DANA L. CLARK AND GEORGE E. CARTIER, APPELLANTS,
v.
REALTY INVESTMENT CENTER, INC., A FLORIDA CORPORATION, AND REALTY SALES ASSOCIATES, INC., A FLORIDA CORPORATION, APPELLEES
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Real estate brokers sued individual stockholders, including two non-residents, for an unpaid commission on a failed stock sale. The trial court denied the non-residents' motion to quash service, but the appellate court reversed, holding that service by publication was improper because the complaint stated only a contract claim for commission recovery, which did not provide a basis for jurisdictional service over non-residents under Florida law.
The appellate court held that service by publication was improper over the non-resident defendants because the complaint presented only a personal contract claim for commission recovery, which did not constitute a sufficient basis for such service. The court further held that the plaintiffs' equitable claims for relief regarding the corporate stock could not bootstrap jurisdiction over the non-residents in a contract action for commission recovery.
[1] A request for equitable relief to aid in the collection of a potential personal judgment does not, by itself, establish jurisdiction over non-resident defendants by publi…
[2] Service by publication under § 49.011 Fla.Stat. …
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“the request for such equitable relief, for the purpose of aiding in collection of a personal judgment for real estate commission, if obtained against the individual defendants, could not serve to permit the plaintiffs to obtain jurisdiction over the non-resident defendants by publication in this action ex contractu for recovery of a commission”
Establishes the core holding that equitable claims cannot bootstrap jurisdiction for a contract action against non-residents.
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Join FLexlaw to unlock all legal intelligencePlaintiffs were real estate brokers who procured a purchaser for all outstanding stock of a Florida corporation owned by five individual defendants. T…
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This appeal, filed by two of the defendants below, is from an order denying their defensive motion stating, as grounds, lack of jurisdiction over the person and insufficiency of process. See Rule 1.140(b) (2) and (4) FRCP, 30 F.S.A.
The complaint alleged the plaintiffs were real estate brokers; that they had procured a purchaser for all of the outstanding stock of the defendant Florida corporation; that the stock was owned by the five individual defendants, three of whom (Van, Miller and Aronson) were residents of Florida and two of whom, the appellants Clark and Cartier, were non-residents. It was alleged a contract for sale of the stock was enter*590ed into between a purchaser and the sellers on a certain date, and that on the same date the sellers entered into a separate contract with the brokers recognizing them as having procured the purchaser and agreeing to pay the brokers a stated commission; that it was a condition of the contract for sale of the corporate stock that title to the real estate owned by the corporation should be good and marketable; that the title proved to be otherwise; and that by reason thereof the sale was not closed and the purchaser obtained a return of the earnest money.
The plaintiff brokers, declaring on their commission contract, sought judgment against the individual defendants for the commission claimed to be due them. In addition, the plaintiffs alleged they anticipated difficulty in collecting their commission due to the fact that two of the persons obligated to pay the same were non-residents, for which circumstance the plaintiffs prayed for imposition of a lien on the corporate stock owned by the defendants and for an injunction to restrain the defendants from disposing of the stock, in order to insure its retention by them so that it would be available to be made subject to execution to satisfy their judgment for commission, if and when obtained. We express no opinion on the merit of that ambitious claim of the plaintiffs for equitable relief, since the merit or lack of merit thereof is a matter for consideration and determination by the trial court in this cause. We hold, however, that the request for such equitable relief, for the purpose of aiding in collection of a personal judgment for real estate commission, if obtained against the individual defendants, could not serve to permit the plaintiffs to obtain jurisdiction over the non-resident defendants by publication in this action ex con-tractu for recovery of a commission.
The service attempted on the two nonresident individual defendants was by publication under § 49.011 Fla.Stat., F.S.A. Their-motion challenging jurisdiction thereunder was supported by their separate affidavits stating their non-residence; that they had no office or place of business in Florida and had no interest other than through ownership of stock of the corporation.
By § 48.181 Fla.Stat., F.S.A., the engaging in business in Florida (in the manner and respects set out in the statute) will make a non-resident subject to be served by substituted service. Subsection (3)of § 48.181 provides among other things that one selling tangible or intangible property through a broker will be conclusively presumed to be engaged in business or a business venture in Florida. We need not express opinion upon the question of whether a single sale of his corporate stock which is owned by a non-resident (to a Florida purchaser, through a local broker) operates to make the non-resident subject to substituted service under that statute (compare Fawcett Publications, Inc. v. Rand, Fla.App.1962, 144 So.2d 512, 514), because the method of substituted service provided for in that statute (by service on the Secretary of State) was not employed in this instance. As for the service attempted on the non-residents in this case under § 49.011 Fla.Stat., F.S.A., we hold, for the reasons set out above, that the complaint did not present a basis for service by publication on the non-resident appellants.
Accordingly, the order appealed from is reversed, and the cause is remanded with direction to enter an order quashing the service by publication on the appellants.
Reversed and remanded with direction.
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Bedford Computer Corp. v. Graphic Press, Inc., 484 So. 2d 1225 (Fla. 1986)…s the one here. Gaskill v. May Brothers, Inc., 372 So. 2d 98 (Fla. 2d DCA 1979); Shannon v. Great Southern Equipment Co., 326 So. 2d 19 (Fla. 2d DCA 1976); Ressler v. Sena, 307 So. 2d 457 (Fla. 4th DCA 1975); Clark v. Realty Investment Center, Inc., 252 So. 2d 589 (Fla. 3d DCA 1971). The fact that the defendant received actual notice of this lawsuit does not render the service of process valid. This Court held in Napolean B. Broward Drainage District v. Certain Lands Upon Which Taxes Were Due, 160 Fla. 120,…
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Martin Blumenthal Assocs., Inc. v. Dinsmore, 289 So. 2d 481 (Fla. 3d DCA 1974)…owned by non-residents, as was the case in the cause sub judice, made to a Florida purchaser through a local broker operates to make the non-residents subject to substituted [*484] service. Cf. Clark v. Realty Investment Center, Inc., Fla.App.1971, 252 So. 2d 589. We think that it does. In Fawcett Publications, Inc. v. Rand, Fla.App.1962, 144 So. 2d 512, this court stated that in order to obtain service under § 48.181(3) it must be demonstrated that either (1) a foreign corporation has some degree of contro…
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Ressler v. Sena, 307 So. 2d 457 (Fla. 4th DCA 1975)…simply an action ex contractu — a suit for damages based on breach of contract. This being true, the service attempted on the landlord under F. S. 49.011, Laws of 1973, was void. We reverse upon authority of Clark v. Realty Investment Center, Inc.; 252 So. 2d 589 (3d D.C.A.Fla.1971). Reversed. MAGER and DOWNEY, JJ., concur.…
Authorities Cited
- Fawcett Publ'ns, Inc. v. Rand, 144 So. 2d 512 (Fla. 3d DCA 1962)