GULFSTAR, INC., VINCENT S. LAZZARA AND ELIZABETH LAZZARA, APPELLANTS,
v.
BORG-WARNER ACCEPTANCE CORP., A DELAWARE CORPORATION, APPELLEE

Fla. 3d DCA | 1978-06-27
No. 77-1696
Before HAVERFIELD, C. J., BARK-DULL, J., and PARKER, J. GWYNN (Ret.), Associate Judge.
360 So. 2d 454 Florida District Court of Appeal, Third District (1978) Positive Treatment
Cited by 2 cases

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Synopsis

Gulfstar, Inc. and individual guarantors appealed a jury verdict finding them liable for $257,323.54 on a guarantee of Underwood Marine's debt to Borg-Warner. The court affirmed, holding that Gulfstar waived its right to strict contract compliance by accepting Borg-Warner's relaxed repayment terms without objection.


Holding

The court held that Gulfstar waived objection to Borg-Warner's non-performance of the contract's strict terms because Gulfstar knew of and accepted the readjusted repayment schedule. The trial court did not abuse its discretion in permitting the amendment to allege waiver because the underlying issue was already being tried and Gulfstar demonstrated no actual prejudice.


Headnotes

[1] A trial court does not abuse its discretion in permitting an amendment to a complaint if the issue raised by the amendment was tried by consent and the non-moving party s…

[2] A jury's finding of waiver may be supported by substantial competent evidence that the waiving party knew of the non-performance and accepted modifications to the contrac…

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Key Quotes

“Gulfstar knew of and accepted the modifications extended to Underwood by giving them more time”

This establishes that Gulfstar had notice of the modified repayment terms, which was critical to the waiver finding.

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Facts & Procedural History

Gulfstar manufactured boats sold to Underwood Marine, which Borg-Warner financed. Gulfstar guaranteed Underwood's repayment to Borg-Warner under a fin…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Gulfstar, Inc., and others (appellants) appeal a final judgment entered upon a jury verdict assessing damages of $257,323.54 for breach of a contract of guaranty.

Gulfstar is a boat manufacturer that was selling boats to Underwood Marine. Borg-Warner loaned Underwood money to pay Gulfstar, who guaranteed the repayments by Underwood to Borg-Warner. Five boats were sold by Underwood “out-of-trust”

, who received the proceeds from the sales and did not pay Borg-Warner. Borg-Warner sued Gulfstar on its guaranty for these amounts.

The financing agreement contained specific previsions regarding repayment. The principal amount was due ninety days after sale or from the date of the loan, whichever was earlier. Upon a payment of 10% each time, it could twice be extended for sixty-day periods. Borg-Warner did not require compliance with these provisions but, instead, relaxed the repayment requirements. Borg-Warner contended that Gulfstar was aware of the alternatives and consented by failing to object and continuing to perform.

Borg-Warner also filed a claim for conspiracy, upon which the trial court directed a verdict for Gulfstar. After the close of the evidence, the trial court permitted Borg-Warner to amend its complaint to allege an affirmative defense of waiver, i. e., that Gulfstar waived its right to have Borg-Warner perform according to the contract. The evidence adduced in support of the conspiracy claim was utilized in support of the waiver claim (to show Gulfstar’s knowledge of the change in collection). On special verdicts, the jury found for Gulfstar on the complaint, since Borg-Warner did not require strict compliance with the contract, but found Gulfstar had waived objection to this non-performance.

The appellants contend the trial court abused its discretion in permitting the amendment to the complaint, because the issue was not tried by consent and Gulfstar had no opportunity to defend against the claim of waiver. They also contend the trial court incorrectly entered final judgment, because there was no substantial competent evidence to support the finding of waiver. We affirm. First, the trial court did not abuse its discretion in permitting Borg-Warner to amend the complaint, because one of the issues tried was that “ * * * Gulfstar knew of and accepted the modifications extended to Underwood by giving them more time”. Gulfstar did not suggest actual prejudice nor request a continuance after the amendment was permitted. Raggs v. Gouse, 156 So. 2d 882 (Fla. 2d DCA 1963); McSwiggan v. Edson, 186 So. 2d 13 (Fla.1966); Strickland v. St. Petersburg Auto Auction, Inc., 243 So. 2d 603 (Fla. 4th DCA 1971); Fla.R.Civ.P. 1.190(b). Secondly, the trial court correctly entered final judgment because there was substantial competent evidence to support the jury’s finding that Gulfstar waived objection to Borg-Warner’s failure to require strict performance of the contract, because Gulfstar knew of the readjustment in repayment terms. Davis v. Evans, 132 So. 2d 476 (Fla. 1st DCA 1961); Richards v. Dodge, 150 So. 2d 477 (Fla. 2d DCA 1963).

Therefore, the final judgment under review be and the same is hereby affirmed.

Affirmed.

. Meaning Underwood sold vessels that were financed under the agreement, called a floor plan agreement.


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Citator

Cited By

  • Saunders v. Goulard, 569 So. 2d 1305 (Fla. 5th DCA 1990)
    …ND REMANDED. GOSHORN and HARRIS, JJ., concur. . See Howell F. Davis & Associates, Inc. v. Laabs, 389 So. 2d 1249 (Fla. 2d DCA 1980); Batista v. Walter & Bernstein, 378 So. 2d 1321 (Fla. 3d DCA 1980); Gulfstar, Inc. v. Borg-Warner Acceptance Corp., 360 So. 2d 454 (Fla. 3d DCA 1978); and Strickland v. St. Petersburg Auto Auction, Inc., 243 So. 2d 603 (Fla. 4th DCA 1971).…

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