BETHLEHEM STEEL CORPORATION, APPELLANT,
v.
CENTEX HOMES CORPORATION, APPELLEE
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Bethlehem Steel appeals from a partial summary judgment on liability for breach of contract, arguing that a unilateral mistake and lack of contract formation preclude liability. The court reverses, holding that genuine issues of material fact exist regarding whether a binding contract was formed and whether Bethlehem's mistake was unilateral, making summary judgment inappropriate.
Summary judgment on liability must be reversed because genuine issues of material fact preclude judgment as a matter of law. The questions of whether a unilateral mistake occurred, whether it goes to the substance of the contract, whether there was inexcusable neglect and detrimental reliance, and whether a contract was actually formed are all factual matters requiring trial.
[1] A unilateral mistake may provide grounds for equitable relief if the mistake goes to the substance of the contract, involves inexcusable neglect, and results in detriment…
[2] The existence of genuine issues of material fact precludes 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“In our opinion, this case bristles with genuine issues of material fact.”
Establishes the court's primary rationale for reversing summary judgment—the presence of multiple contested factual questions.
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Join FLexlaw to unlock all legal intelligenceIn November 1973, Bethlehem transmitted a proposal to Centex for steel supply. Centex later authorized Bethlehem to proceed with shop drawings subject…
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NATHAN, Judge.
This is an interlocutory appeal by Bethlehem Steel Corporation, defendant in the trial court, from a partial summary judgment on liability in favor of Centex Homes Corporation, the plaintiff, in an action for damages for breach of contract.
Centex’s complaint alleged that on or about April 8, 1974, the parties entered into a contract which provided that Bethlehem would furnish, fabricate and deliver steel to Centex at its job site on Miami Beach, for a specific price per unit, per ton. The complaint further alleged that Centex demanded performance, but Bethlehem failed and refused to perform and, therefore, Centex obtained the steel from another party at a higher price and thus suffered damages.
In defense of the action, Bethlehem asserted that in November of 1973, pursuant to discussions between Bethlehem’s salesman, H. W. Major, and Ray Stevens, Vice-President of Construction for Centex, a proposal was transmitted from Bethlehem to Centex. Centex failed to accept within the specified time, but in January 1974, authorized Bethlehem by letter, “to proceed with shop drawings” on the project, with the actual supplying of the steel to be “subject to our receipt of a building per^ mit.” Centex later submitted a purchase order to Bethlehem at its home office in Pennsylvania for approval. Michael J. McCooey, Assistant Manager of Sales for Bethlehem, found the terms of Centex’s purchase order unacceptable and did not intend to accept it because the price was unsatisfactory. McCooey mistakenly initialed the purchase order; the order erroneously “escaped” from his desk and was subsequently processed, approved and returned to Centex in Florida. Immediately upon discovery that the offer was accepted by mistake, Bethlehem so advised Centex and negotiations as to price and delivery schedule were renewed. Allegedly a new agreement was reached and based thereon, Bethlehem transmitted a new proposal to Centex which was not accepted by Centex. Centex then proceeded to purchase steel elsewhere, without demanding delivery of the needed steel from Bethlehem. At no time during the negotiations between the parties had Centex obtained a building permit.
Bethlehem urges reversal for the reasons that there was a unilateral mistake and further, that there was no contract between the parties. Centex argues that the trial court was correct in holding that Bethlehem breached the contract on the theory of anticipatory breach and the rule of law that once there has been an anticipatory breach, one is not thereafter required to demand compliance with the contract. Thus, when Bethlehem advised Cen-tex that it would not perform on the terms set out in the contract, Centex was forced to obtain steel from another company at a price much greater than the Bethlehem contract price.
In our opinion, this case bristles with genuine issues of material fact. One question is whether there was a unilateral mistake on the part of Bethlehem. Under Florida law, equitable relief may be grant ed on the basis of unilateral mistake1 which presents triable issues such as whether or not the mistake goes to the substance of the contract or whether there was inexcusable neglect by Bethlehem and detrimental reliance by Centex. Another factual issue is whether or not there was a contract.
The existence of genuine issues of material fact preclude summary judgment in this case. Accordingly, the partial summary judgment on liability is reversed and the cause is remanded to the trial court for further proceedings consistent herewith.
Reversed.
. Maryland Casualty Company v. Krasnek, Fla.1965, 174 So. 2d 541, 543.
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Shupnick v. Pershing Auto Leasing, Inc., 363 So. 2d 198 (Fla. 3d DCA 1978)…Indus. Pow. Trans., 232 F. 2d 217 (5th Cir. 1956). We therefore conclude that there remain genuine issues of material fact to be resolved with regard to the alleged breach of the 1967 agreement. See Bethlehem Steel Corp. v. Centex Homes Corporation, 327 So. 2d 837 (Fla. 3d DCA 1976). Accordingly, the summary judgment is reversed and the cause is remanded to the Circuit Court for further proceedings. Reversed and remanded.…
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Barnes v. OPA Locka Flight Ctr., Inc., 376 So. 2d 1215 (Fla. 3d DCA 1979)…. Holl v. Talcott, 191 So. 2d 40 (Fla.1966); National Airlines, Inc. v. Florida Equipment Co. of Miami, 71 So. 2d 741 (Fla.1954); Allington Towers North, Inc. v. Teich, 345 So. 2d 745 (Fla. 4th DCA 1977); Bethlehem Steel Corp. v. Centex Homes Corp., 327 So. 2d 837 (Fla. 3d DCA 1976); Fontainebleau Hotel Corp. v. Southern Florida Hotel and Motel Assn., 294 So. 2d 390 (Fla. 3d DCA 1974). Reversed and remanded.…
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Roberts & Schaefer Co. v. Hardaway Co., 152 F.3d 1283 (11th Cir. 1998)…yee of a party enters into a contract or releases another ' party from a contract under the mistaken belief that he is authorized to do so or that the contract pertains to something other than it does. In Bethlehem Steel Corp. v. Centex Homes Corp., 327 So. 2d 837 (Fla.Dist.Ct.App.1976), for example, Bethlehem Steel Corporation (“Bethlehem”) transmitted a proposal to Centex Homes Corporation (“Centex”) whereby Bethlehem would furnish, fabricate, and deliver steel to Centex at its job site on Miami Beach for a…
Authorities Cited
- Md. Cas. Co. v. Krasnek, 174 So. 2d 541 (Fla. 1965)