SCHWARTZ
v.
ZACONICK ET AL.

Fla. | 1954-08-06
ROBERTS, C. J., and TERRELL, THOMAS and HOBSON, JJ., concur.
74 So. 2d 108 Florida Supreme Court (1954) Positive Treatment
Cited by 23 cases

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Synopsis

In a mortgage foreclosure action, the Florida Supreme Court held that defendants were estopped from refiling a defense regarding a contemporaneous oral agreement to avoid interest payments after losing on that issue in a prior appeal. The Court affirmed the trial court's allowance of an amended answer asserting a set-off claim and remanded for determination of costs and attorney fees according to equitable principles.


Holding

The Court held that defendants were estopped from reasserting the oral agreement defense by reformation after losing on this issue in the prior appeal. The Court affirmed the trial court's permission to amend the answer to assert the set-off claim because the statute of limitations had been tolled by an equitable injunction. The Court reversed the portion of the decree assessing costs against Schwartz and remanded for the chancellor to apportion costs and attorney fees according to equitable circumstances.


Key Quotes

“They, having elected to stand on the validity of the oral contemporaneous agreement in the trial court and subsequently argued that issued here, are now estopped to assert the same defense by reformation.”

Establishes the estoppel doctrine preventing defendants from relitigating the oral agreement defense after a prior appeal.

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Facts & Procedural History

Schwartz obtained a mortgage from the Zaconicks securing a $7,000 note at 6% interest payable semi-annually. The Zaconicks previously litigated and ap…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

This was a suit in equity, to foreclose a mortgage bearing interest at six, per cent, payable semi-annually. The mortgage was given by the Zaconicks to Schwartz to secure a note for $7,000. For full statement of facts and judgment of this Court .as. to basis of this appeal, see Schwartz v. Zaconick, Fla., 68 So. 2d 173. Upon going down of the mandate,, defendants moved to amend their answer. Before the Court ruled on said motion the plaintiff moved to set aside the final decree appealed .from, for summary final decree for sale of the mortgaged properties, for attorney’s fees and for costs. At the hearing on these motions the Chancellor declined to set aside the final decree and entered his order of June 9, 1954, as amended June 11, two days. later, in which he permitted defendants to file their amended answer and denied plaintiff’s motion for summary judgment. We are confronted with an appeal by certiorari from this order. We think it was error for the trial court to permit defendants to.again proffer the contemporaneous oral agreement not to pay interest on the note as between the parties under the guise of an answer seeking affirmative relief through reformation of the mortgage. Defendants bottomed their request upon “error and mistake of law on the part of the defendants and error and/or fraud and misrepresentation on the part of the plaintiff.” On this point defendants previously had their day in court, including an appeal to this Court. They, having elected to stand on the validity of the oral contemporaneous agreement in the trial court and subsequently argued that issued here, are now estopped to assert the same defense by reformation. Schwartz v. Zaconick, supra, concludes the matter. The defendants’ amendment to their answer alleged for the first time a claim for set-off of $700 arising from the plaintiff’s purchase of an automobile from the defendants on or about May 1, 1948. The petitioner contends that such set-off is barred by the statute of limitation. Were it not for the fact that the Chancellor in his final decree of June 26, 1952 (reversed in part in Schwartz v. Zaconick, supra) perpetually enjoined the common law action in which this debt had been asserted by defendants and admitted by the plaintiff, there might be merit in this contention. While the common law action was enjoined pending disposition of this proceeding, we think the statute of limitation as to said claim was tolled so the Chancellor could permit or deny the set-off as the equities might warrant. It does not otherwise appear that the Chancellor abused his discretion in permitting the defendants to amend their answer. The petitioner also contends that failure of the Chancellor to set aside the final decree entered June 26, 1952 and to grant his motion for summary relief was error. In other words, he says that the Chancellor committed error in not setting aside that portion of the decree assessing costs against the plaintiff including the master’s fee of $1,000. He contends that the Chancellor should have impressed upon the respondents not only the costs assessed by the said decree but should have in addition thereto assessed and imposed certain additional costs arising out of the former appeal to this Court wherein the cause was remanded for further proceeding consistent with the opinion and mandate issuing from this Court, directing that the appellant recover his costs on this behalf. The total costs sought by the petitioner, in addition to attorney fees, aggregated $1,858.47.

On February 2, 1954 the mandate of this Court went down stating, inter alia, that “Appellant to have and recover of and from the Appellees his costs by him in this behalf expended.”, but no amounts were fixed. Subsequent thereto on March 9, 1954 appellee (the respondents in the present proceedings) filed a motion in this Court, requesting us to assess the $12 filing fee paid by appellants to the clerk upon filing the appeal and to direct the clerk to tax all other costs against appellant. The Court denied this motion, and thus left intact that portion of the trial court’s order of June 26, 1952 assessing costs, etc., against the appellant.

The trial court, having been ordered to proceed as required by the opinion of this Court, had jurisdiction to proceed with the litigation and enter such orders as the equities warrant, including the apportionment of costs and attorney fees, at the conclusion of the litigation. The general rule is that costs follow the results of the litigation but in equity this rule may be departed from according to the circumstances. Wilhelm v. Adams, 102 Fla. 669, 136 So. 397; Holly Hill Grove & Fruit Co. v. Wicker, 107 Fla. 765, 143 So. 882. It is quite evident that the equities of this case require departure from the rule, for which it is committed to the Chancellor for his consideration and the apportionment of costs and attorney fees as to him may seem right and just.

The petition for writ of certiorari is accordingly granted and the decree appealed from is affirmed in part and reversed in part.

ROBERTS, C. J., and TERRELL, THOMAS and HOBSON, JJ., concur.


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Citator

Cited By (12 total)

  • Hendry Tractor Co. v. Fernandez, 432 So. 2d 1315 (Fla. 1983)
    …udgment was, without doubt, rendered in favor of the plaintiffs/Fernandezes. As a general rule costs follow the outcome of the litigation and we are not here confronted with a situation warranting departure from such principle. Schwartz v. Zaconick, 74 So. 2d 108 (Fla.1954); Spicuglia v. Green, 302 So. 2d 772 (Fla. 2d DCA 1974), cert. denied, 315 So. 2d 193 (Fla.1975); Jordon v. Reynolds, 154 So. 2d 200 (Fla. 3d DCA 1963). The Fernandezes are clearly the parties recovering judgment and should be awarded cost…
  • Swartzman v. The Honorable Catherine M. Harlan, 535 So. 2d 605 (Fla. 2d DCA 1988)
    …U.S.C. § 362 (1978) prevented the commencement of any action against the Swartzmans during the penden-cy of the bankruptcy proceedings. In sup [*607] port of its contention, Scrub-A-Dub relies on the “general rule” as cited in Schwartz v. Zaconick, 74 So. 2d 108 (Fla.1954); City of Orlando v. Williams, 493 So. 2d 15 (Fla. 5th DCA 1986), rev. denied, 503 So. 2d 328 (Fla.1987); Major Appliances, Inc. v. Mount Vernon Fire Insurance Co., 462 So. 2d 561, 563 n. 1 (Fla. 3d DCA 1985); and DuPont v. Parker & Co., 1…
  • Flagala Corp. v. Hamm, 302 So. 2d 195 (Fla. 1st DCA 1974)
    …or may require that all costs shall be paid by the prevailing party. In either situation, an appellate court will not disturb the ruling of the chancellor, unless a clear abuse of discretion is made to appear.” Later in Schwartz v. Zaconick, Fla., 74 So. 2d 108, the Supreme Court said: “ . . . The general rule is that costs follow the results of the litigation but in [*197] equity this rule may be departed from according to the circumstances. Wilhelm v. Adams, 102 Fla. 669, 136 So. 397; Holly Hill Grove &…

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