GEORGE V. R. MULLIGAN AND HAROLD P. KOENIG, APPELLANTS,
v.
DAVID WALLACE ET AL., APPELLEES
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Officers, directors, and stockholders of a corporation lack standing to sue accountants for breach of contract, and voluntary resignation bars claims for tortious interference with employment contracts.
[1] Officers, directors, or stockholders of a corporation lack standing to sue an accountant for breach of contract as third-party beneficiaries of the contract between the c…
[2] A voluntary resignation from employment bars an action for tortious interference with employment contracts.
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PER CURIAM.
George V. R. Mulligan and Harold P. Koenig, plaintiffs in the trial court, appeal from that portion of a final judgment which was designated as an order on the pleadings, dismissing with prejudice Counts I and III of their amended complaint.
Harold P. Koenig, formerly president, a director, chief executive officer, and a stockholder of Ecological Science Corporation, and George Mulligan, formerly a director and some-time consultant to Ecological, filed their four-count complaint against Haskins & Sells following an intracorporate battle for management of Ecological. In Count I of the amended complaint, the plaintiffs (allegedly as third-party beneficiaries of the contract for accounting services between Ecological and Haskins & Sells, a certified public accounting firm) sued Has-kins & Sells and its individual members for breach of the said contract. Count II sued Haskins & Sells and its individual members for the negligent performance of accounting services. Counts III and IV were alleged against all defendants. Besides the aforementioned parties, the other defendants included Norman J. Davidson, McChes-ney Goodall, Mark Auerbach, Grinnell Morris, Hugo Mieth, and Renselaer Bartram. Ecological was not a named party to this litigation. Count III sued all defendants for conspiracy to force resignation and interference with employment contracts. Count IV alleged that all defendants participated in a conspiracy to defame by slander and libel. The plaintiffs appeal from dismissal with prejudice of Counts I and III.
The appellants contend the trial court erred in dismissing Count I of the amended complaint with prejudice, because officers, directors, and stockholders of a corporation, indicted as a result of a breach of contract by accountants to perform accounting services for said corporation, have standing as third party beneficiaries of said contract to sue said accountants. The intent of the parties is paramount in determining questions of liability to third party beneficiaries. The appellants contend the contract in question surely was intended to benefit the officers, directors, and stockholders of Ecological, and that mistake in a Form 10K with the Securities & Exchange Commission by Haskins & Sells led the plaintiffs to an indictment and damages. The appellants further contend the trial court erred in dismissing Count III with prejudice, because the plaintiffs, as corporate officers and directors, may recover damages against third parties for interference with their employment contracts with their corporate employer or for precipitating events leading to their resignations even though the corporate employer, Ecological, did not discharge them.
We affirm. An accountant is liable to his client (Ecological Science Corporation) only for breach of contract to provide auditing services. Officers, directors, or stockholders of the client, and others not in privity with the accountant, lack standing to maintain an action for breach of contract. Citizens National Bank of St. Petersburg v. Peters, 175 So. 2d 54 (Fla.2d DCA 1965); Fried v. Easton, 293 So. 2d 87 (Fla.3d DCA 1974); Dubbin v. Touche Ross & Co., 324 So. 2d 128 (Fla.3d DCA 1975); Barzda v. Quality Courts Motel, Inc., 386 F. 2d 417 (5th Cir. 1967). In Dubbin v. Touche Ross & Co., supra, this court stated the following:
* * * * * *
“ * * * The plaintiffs urge that the fact that they sought to have their stock registered with the Securities and Exchange Commission so that its value would be enhanced, and the fact that it was necessary for them to make their application for registration as an adjunct to the corporation’s application to register stock, made them parties to, or third party beneficiaries of, the contract between the corporation and the public accounting firm. The trial court correctly determined that the facts pleaded did not create an exception to the rule. The injury, if any, was primarily to the corporation. * * * ”
**
Plaintiffs’ resignations from their positions with Ecological bar their action for tortious interference with employment contracts. Chipley v. Atkinson, 23 Fla. 206, 1 So. 934 (1887); Anno. 84 A.L.R. 57; Anno. 26 A.L. R.2d 1227, 1249. In Chipley v. Atkinson, supra, the Supreme Court of Florida succinctly set forth the necessity that an employee be discharged by his employer in order to have a cause of action for tortious interference with employment contracts. In said opinion, the court stated:
**
“ * * * The effect of this is that if the plaintiff, knowing of the alleged conduct of Chipley, voluntarily left the service of Kehoe & Walker on account of such conduct, yet without being in fact discharged by them, that such voluntary leaving their service constituted in law a discharge of him from their service by Ke-hoe & Walker. There must, we think always be such a discharge of the plaintiff in a case like this, as amounts to a termination by his employer of the contract to the employe. * * * ”
**
Wherefore, the final order under review be and the same is hereby affirmed.
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Sec. Mut. Cas. Co. v. Pacura, 402 So. 2d 1266 (Fla. 3d DCA 1981)…claims to belong as a third party beneficiary. Wright v. Terry, 23 Fla. 160, 2 So. 6 (1887); McCann Plumbing Co. v. Plumbing Industry Program, 105 So. 2d 26 (Fla. 3d DCA 1958); Bryant v. Cole, 282 So. 2d 652 (Fla. 2d DCA 1973); Mulligan v. Wallace, 349 So. 2d 745 (Fla. 3d DCA 1977). Florida has also recognized the right of a third party beneficiary to bring an action directly against an insurer to recover under contractual provisions of medical payment [*1268] coverages. Maxwell v. Southern American Fire In…
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Seminole Tribe OF Florida v. Times Publ'g Co., Inc., 780 So. 2d 310 (Fla. 4th DCA 2001)…terference of an existing employment relationship, the plaintiff typically demonstrates that the relationship was terminated or blocked in order to state a claim. See Chipley v. Atkinson, 23 Fla. 206, 212, 1 So. 934, 938 (1887); Mulligan v. Wallace, 349 So. 2d 745, 747 (Fla. 3d DCA 1977); Lingard v. Kiraly, 110 So. 2d 715, 717 (Fla. 3d DCA 1959). The reporters’ conduct in this case is not the type of conduct at which the tort is usually directed. The reporters did not undertake to influence the Tribe’s emplo…
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Invs. TAX Sheltered Real Est., Ltd. v. Laventhol, 370 So. 2d 815 (Fla. 3d DCA 1979)…negligence, or, having knowledge that the third party intended to rely upon the statements prepared by him, was guilty of fraud in connection therewith. See also, Dubbin v. Touche Ross & Co., 324 So. 2d 128 (Fla.3d DCA1975) and Mulligan v. Wallace, 349 So. 2d 745 (Fla.3d DCA1977).7 See general [*818] ly, 46 A.L.R.3d 979, Liability of Public Accountant to Third Parties. We have carefully considered the record and points on appeal and have concluded that the directed verdict was legally justified in light of…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Citizens Nat'l Bank OF ST. Petersburg v. Peters, 175 So. 2d 54 (Fla. 2d DCA 1965)
- Wm. D. Chipley v. Atkinson, 23 Fla. 206 (Fla. 1887)
- Mortimer Fried v. Easton, 293 So. 2d 87 (Fla. 3d DCA 1974)
- Stasys Barzda and Mary Barzda v. Quality Courts Motel, Inc., 386 F.2d 417 (5th Cir. 1967)
- Dubbin v. Touche Ross & Co., 324 So. 2d 128 (Fla. 3d DCA 1975)