C. R. GILLILAND
v.
MERCANTILE INVESTMENT & HOLDING CO., A FLORIDA CORPORATION, ALSO KNOWN AS MERCANTILE INVESTMENT AND HOLDING COMPANY, A FLORIDA CORPORATION

Fla. | 1941-07-01
Brown, C. J., Whitfield and Thomas, J. J., concur.
147 Fla. 613 Florida Supreme Court (1941) Positive Treatment
Also reported at: 3 So. 2d 148
Cited by 11 cases

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Synopsis

In this breach of contract action, the Florida Supreme Court affirmed a directed verdict for the defendant, holding that a plaintiff claiming anticipatory breach must prove actual damages with the same degree of proof as if the breach had already occurred, and cannot recover based on speculation about what might have been received from a contingent fund.


Holding

The court held that a plaintiff is held to the same degree of proof to recover damages in an action for anticipatory breach as if the plaintiff had waited until after the time for fulfillment elapsed. The court rejected the argument that defendant's wrongful act rendering fulfillment impossible dispenses with proof of actual damages. The plaintiff must prove damages; recovery cannot be based on speculative, fictitious, or supposed damage.


Key Quotes

“The plaintiff is held to the same degree of proof to recover damages in an action brought on an anticipatory breach as if he had waited until after the time elapsed for fulfillment of his contract.”

This establishes the controlling standard for proof of damages in anticipatory breach cases, rejecting the plaintiff's argument that defendant's wrongful act dispenses with proving damages.

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Facts & Procedural History

In 1931, Mercantile Investment & Holding Co. and Highway Construction Company formed Hollywood, Inc. to liquidate properties and distribute proceeds. …

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Opinion of the Court
Adams, J.

Adams, J.

This was an action for breach of contract. It comes here from involuntary nonsuit.

In 1930, defendant Mercantile Company and High*614way Construction Company were owners of numerous properties. In 1931, the two companies caused to be formed a third company to-wit: Hollywood, Inc. The purpose of the latter was to take title to the properties of the two former and liquidate same. By agreement, the Hollywood Company was to disburse to the defendant and Highway Construction Company: first, stated sums representing cash advances; second, stated sums representing liens; third, next in order to pay $500,000.00 to defendant and $2,000,000.00 to Highway Construction Company pro rata.

The contract, the breach of which, forms the basis of this action refers to the third item wherein defendant: “does assign and set over unto the said C. R. Gilliland, his heirs, legal representatives and assigns forever, a one-tenth (1-10) part of all sums payable to said Mercantile Investment & Holding Co. through Hollywood, Inc., a Florida corporation, under the third part of Paragraph I, of Paragraph eleven (11) of that certain contract between The Highway Construction Company, Ohio, Inc., and Mercantile Investment & Holding Co. dated January 22, 1931, payable as, if and when the same shall be payable and paid under the terms of said agreement.”

The plaintiff sued in 1938. The theory of his action is that defendant by vexatious litigation brought against Hollywood, Inc., hindered and frustrated the liquidation and also in 1937 defendant breached the contract with plaintiff by selling and divesting itself of all right to receive any sum under the plan of liquidation.

The plaintiff received no payment under the assignment. The case was tried on pleas of first, general issue; second, lack of authority of defendant’s presi*615dent to execute the contract; third, no consideration and estoppel.

When plaintiff rested his case the defendant moved for a directed verdict because plaintiff had proved no damage. The. trial judge announced that he would grant the motion and plaintiff suffered a nonsuit.

The plaintiff introduced no evidence of what he would have received had the liquidation been made as originally contemplated. He contends that the wrongful act of defendant making the fulfillment impossible dispensed with the necessity of such proof. He contends his action is for an anticipatory breach and that defendant’s wrongful act has rendered proof of actual damage impossible and for that reason he is entitled to the maximum amount. With this we do not agree. The doctrine of anticipatory breach of contract has been approved by us. See Sullivan v. McMillan, 26 Fla. 543, 8 So. 450; Thomson v. Kyle, 39 Fla. 582, 23 So. 12, 63 Am. St. Rep. 193; Harris v. Coconut Grove Development Company, 63 Fla. 175, 59 So. 11.

The plaintiff is held to the same degree of proof to recover damages in an action brought on an anticipatory breach as if he had waited until after the time elapsed for fulfillment of his contract. Numerous cases from other jurisdictions have been cited by plaintiff. Typical of them is Bagley v. Cohen, 53 Pac. 1117 (Cal.). In this case there was a contract to pay a fixed sum to-wit: $310.00 from profits. Defendant’s act rendered fulfillment impossible. If plaintiff had a case it was for the full amount. His damage was fixed and liquidated. In neither case will a verdict be sustained for speculative, fictitious or supposed damage. A. J. Richey Corporation, et al., v. Garvey, et al., 132 Fla. 602, 182 So. 216.

*616Here in the case at bar plaintiff’s contract is for ten per cent of a contingent and anticipated fund with a maximum of $50,000.00. Finding no error in the record the judgment is affirmed.

Brown, C. J., Whitfield and Thomas, J. J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Perry v. Shaw, 152 Fla. 765 (Fla. 1942)
    …t to declare it of no effect. This contention is now approved by a majority of the Court. The law of anticipatory breach of contract was sanctioned at common law and has long been approved in Florida. See Gilliland v. Mercantile Inv. & Holding Co., 147 Fla. 613, 3 So. (2nd) 148 and cases there cited. However, such law does not apply to this case since the lease is an assignable asset and will inure to the creditors and stockholders in equity. In 32 Am. Jur., page 704, par. 827: “Dissolution of Corporate…
  • State Farm Mut. Auto. Ins. Co. v. Michaelyn Smith, 565 So. 2d 751 (Fla. 5th DCA 1990)
    …hing their damages. See, e.g., Bartholf v. Baker, 71 So. 2d 480 (Fla.1954); Florida Ventilated Awning Co. v. Dickson, 67 So. 2d 215 (Fla.1953); Farrington v. Richardson, 153 Fla. 907, 16 So. 2d 158 (1944); Gilliland v. Mercantile Inv. & Holding Co., 147 Fla. 613, 3 So. 2d 148 (1941); Lakeland v. Douglass, 143 Fla. 771, 197 So. 467 (1940); Baggett v. Davis, 124 Fla. 701, 169 So. 372 (1936); Williams v. Atlantic Coast Line R. Co., 56 Fla. 735, 48 So. 209 (1908); Moses v. Autuono, 56 Fla. 499, 47 So. 925 (1908…
  • Schein v. Chasen, 313 So. 2d 739 (Fla. 1975)
    …Peters, 175 So. 2d 54 (2d Dist.Ct.App.Ma.1965); Maronek v. Atlantis Hotel, Inc., 148 So. 2d 721 (3d Dist.Ct.App. Fla.1963); James Talcott, Inc. v. McDowell, 148 So. 2d 36 (3d Dist.Ct.App.Fla.1962). . See Gilliland v. Mercantile Inv. & Holding Co., 147 Fla. 613, 3 So. 2d 148 (1941). . The speculative nature of possible corporate damage is compounded by the fact that trading in the company’s stock was suspended on the very afternoon of defendant’s sales for a company announcement, which proved to be the “t…

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