ALFRED BASSATO, APPELLANT,
v.
RALPH M. DENICOLA, APPELLEE

Fla. | 1955-05-11
DREW C. J., and TERRELL and SE-BRIN'G, JJ., concur.
80 So. 2d 353 Florida Supreme Court (1955) Caution
Cited by 14 cases

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Synopsis

Bassato appeals a summary judgment entered against him in a promissory note action. The Florida Supreme Court reversed, holding that Bassato's defense—that the notes represented a conditional delivery evidencing his partner's interest in a liquor business rather than a true debt—raised a genuine issue of material fact precluding summary judgment.


Holding

The court held that Bassato's allegations were sufficient under Florida law to establish a defense that the promissory notes were conditionally delivered and not intended to become binding obligations until a future event occurred. Summary judgment was therefore improper, and the matter should proceed to trial before a jury.


Key Quotes

“Parol evidence is admissible, as between the parties, to show that a negotiable note was not to become binding, except upon the happening of a certain event in the future. Such evidence does not vary the terms of a written instrument but tends to establish the fact that the note as between the parties never became a fixed and binding obligation because the event in the future contemplated by the parties failed to happen or occur.”

Establishes the legal rule permitting parol evidence to show conditional delivery of negotiable instruments without varying their terms

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Facts & Procedural History

Denicola sued Bassato on two promissory notes of $2,500 each. Bassato denied borrowing money and asserted that the $5,000 represented his investment c…

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Opinion of the Court
ROBERTS, Justice.

ROBERTS, Justice.

The appellee, plaintiff below, filed suit in the lower court on two promissory notes, each in the amount of $2,500, executed by the defendant and made payable to the plaintiff. The defendant, appellant here, filed his answer in which he denied that he had borrowed any money from the plaintiff and related certain facts concerning a partnership between the parties, which need not be recounted at this time. The sufficiency of the answer was not attacked in the lower court, so far as this record shows. The discovery deposition of the defendant was then taken, at the instance of the plaintiff, on November 12, 1954, and on that same date a pre-trial conference was held and a “Memorandum of Pretrial Conference” was entered by the trial judge in which he “adjudged” that the defense sought to be interposed in the answer of the defendant constituted an attempt-to vary the terms of the promissory notes by a parol agreement; that “summary judgment is entered against the defendant”; and that “final judgment will be entered upon due notice to the parties.”

The defendant then moved to set aside the “summary judgment” (for which no motion had ever been filed by plaintiff, so far as the record shows) and also filed a motion for leave to file an amended answer and counterclaim. These motions were denied on the same ground as stated in the “Memorandum of Pretrial Conference”, referred to above, and final judgment was entered for plaintiff in the amount of the notes, with interest and costs. The defendant has appealed.

The defense sought to be interposed by the defendant in his amended answer was, in effect, that the $5,000 represented by the notes sued upon was, in reality, an investment by the plaintiff in a partnership business to operate a liquor establishment; that defendant, who owned a liquor license, advanced to the partnership all of the stock, some of the fixtures, the liquor license, and the good will of a liquor establishment theretofore operated by the defendant, and the $5,000 was contributed by the plaintiff; that plaintiff was not a registered voter in Connecticut, the place where the note was executed and the partnership business was located, so that he could not legally be shown as a partner in such business; that the notes in the total amount of $5,000 were executed by defendant at plaintiff’s request in order to evidence plaintiff’s interest in the partnership until such time as he could be shown as a partner in the business; that the plaintiff was later officially listed as a partner with defendant in the business; and that “the notes became null and void and of no effect as now plaintiff was a partner and his interest was represented by his having a one-half share in said business.”

We think that the above allegations were sufficient to make out a case under Section 674.18, Fla.Stat.1953, F.S.A., that, as between the immediate parties, “the delivery [of a promissory note] may be shown to have been conditional, or for a special purpose only, and not for the purpose of transferring the property in the instrument. * * and within the rule stated in Tharp v. Kitchell, 151 Fla.226, 9 So. 2d 457, 460, as follows:

“Parol evidence is admissible, as between the parties, to show that a negotiable note was not to become binding, except upon the happening of a certain event in the future. Such evidence does not vary the terms of a written instrument but tends to establish the fact that the note as between the parties never became a fixed and binding obligation because the event in the future contemplated by the parties failed to happen or occur.”

We find nothing in the deposition of the defendant inconsistent with the allegations of his amended answer, and we think he should have been allowed to prove, if he could, before a jury the defense alleged in his amended answer. For the reasons stated, the judgment appealed from should be and it is hereby reversed and the cause remanded for further proceedings.

Reversed and remanded.

DREW C. J., and TERRELL and SE-BRIN'G, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • The Nw. Bank v. Cortner, 275 So. 2d 317 (Fla. 2d DCA 1973)
    …Halliburton Co. v. McPheron, 1962, 70 N.M. 403, 374 P. 2d 286; 30 Am.Jur.2d, Evidence, § 1032; 13 Fla.Jur., Evidence, § 399. Parol evidence is also admissible to show a condition precedent; Jackson v. Parker, supra; Bassato v. Denicola, Fla. 1955, 80 So. 2d 353; Chappell v. Hasche, Fla.App.1957, 98 So. 2d 808; Burns v. Board of Public Instruction of Okaloosa Co., Fla.App.1968, 212 So. 2d 654; Beach Keys, Inc. v. Girvin, Fla.1968, 213 So. 2d 314; 32A C.J.S. Evidence § 935; 30 Am. Jur.2d, Evidence, § 1038; C…
  • Paradise Beach Homes, Inc v. S. Atl. Lumber Co., Inc., 118 So. 2d 825 (Fla. 1st DCA 1960)
    …ng obligation except upon the happening of a certain event, such as an inspection and approval by the buyer of goods which are the subject matter of the sale. * * *’ ” A clear application of this rule may be found in Bassato v. Denicola, Fla. 1955, 80 So. 2d 353-354. There the plaintiff had filed a suit on two promissory notes, each in the amount of $2,500, executed by the defendant and made payable to the plaintiff. In his amended answer the defendant alleged that the $5,000 represented by these notes was,…
  • THE Race, Inc. v. Lake & River Recreational Props., Inc., 573 So. 2d 409 (Fla. 1st DCA 1991)
    …to become binding except upon the happening of a certain event in the future, for the purpose of establishing the fact that the note never became a fixed and binding obligation because the contemplated event failed to occur. See Bassato v. Denicola, 80 So. 2d 353 (Fla.1955); Beach Keys, Inc. v. Girvin, 213 So. 2d 314, 316 (Fla. 1st DCA 1968) (summary judgment reversed on a record showing that defendants-mortgagors alleged that they had entered into an oral contract with the mortgagees, agreeing that the mort…

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