Berenson v. World Jai-Alai, Inc.

374 So. 2d 35
CourtDistrict Court of Appeal of Florida
DecidedJuly 17, 1979
Docket78-1232
StatusPublished
Cited by9 cases

This text of 374 So. 2d 35 (Berenson v. World Jai-Alai, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berenson v. World Jai-Alai, Inc., 374 So. 2d 35 (Fla. Ct. App. 1979).

Opinion

374 So.2d 35 (1979)

L. Stanley BERENSON, Appellant,
v.
WORLD JAI-ALAI, INC., and Lloyd's Underwriters, Appellees.

No. 78-1232.

District Court of Appeal of Florida, Third District.

July 17, 1979.
Rehearing Denied September 10, 1979.

*36 Wallace & Breslow and Milton J. Wallace, Miami, for appellant.

Frates, Floyd, Pearson, Stewart, Richman & Greer and James B. Tilghman, Jr., Kelly, Black, Black, Wright & Earle and George W. Wright, Jr., Miami, for appellees.

Before HENDRY, HUBBART and SCHWARTZ, JJ.

HENDRY, Judge.

The question raised by this appeal is whether the trial court erred in entering summary final judgment against appellant, Berenson, and in favor of World Jai-Alai, Inc. and its insurer, Lloyd's Underwriters on Berenson's third-party complaint for indemnification. We have determined that the order should be affirmed.

The main action, seeking compensatory and punitive damages against the appellant, was filed by two individual businessmen, Cooper and Simon, alleging that Berenson unlawfully interfered with Cooper and Simon's business relationship with World Jai-Alai, Inc., one of the appellees herein. The claimed tortious interference by Berenson is alleged to have been caused by Berenson's actions and conduct in "sabotaging" Cooper and Simon's business relationship with World Jai-Alai and attempting to procure it for himself; that is, for his own personal gain and benefit. The complaint in the main action specifically alleges that Cooper and Simon entered into negotiations with World Jai-Alai which culminated in a tentative agreement by World Jai-Alai to lease all its property and businesses to Cooper *37 and Simon as limited partners; that when Berenson learned of the negotiations, he contacted Cooper and Simon to inquire about possible terms and conditions under which they would permit him (Berenson) to participate as a partner with them; that they and Berenson orally agreed to a joint venture whereby Berenson would own twenty-five percent of the venture and would be chief executive officer; that Berenson thereafter frustrated the agreement between plaintiffs and World Jai-Alai by certain words and conduct intended to cause the directors and officers of World Jai-Alai to terminate negotiations with Cooper and Simon; that while Berenson was engaged in the conduct complained of, he was simultaneously attempting to procure the same leasing agreement with World Jai-Alai for himself and to the exclusion of Cooper and Simon. In his answer, appellant/defendant denied the allegations of interference, denied that he did anything to cause World Jai-Alai to terminate negotiations with Cooper and Simon. Berenson further asserted that his status "as the major stockholder, director, officer, employee and agent of World Jai-Alai, as well as his status as a trustee under the agreement and declaration of trust, a document executed in 1975[1], precluded the maintenance of the action because, by virtue of said status, any statements, opinions, or actions by him were privileged."

Subsequently, Berenson filed a third-party complaint against World Jai-Alai and its insurer seeking indemnification for any expenses incurred or money judgment entered against him resulting from the main action. In the third-party action, Berenson alleged that he was entitled to indemnification based upon his status in the organization, the language used in World Jai-Alai's certificate of incorporation, its by-laws, the aforementioned agreement and declaration of trust, as well as upon the provisions of the insurance policy between World Jai-Alai and Lloyd's Underwriters. In their answers to the third-party complaint, World Jai-Alai and Lloyd's, inter alia, denied Berenson's right to indemnification, alleging that he was not acting in any one of his representative capacities at the times material to the main action, and that he was not acting in good faith and in a manner reasonably believed to be in the best interests of World Jai-Alai, Inc.

Motions for summary judgment were filed by the parties, hearing was held, memoranda submitted, and thereafter the trial court rendered the order herein appealed, which states in pertinent part:

"1. That the Motion of Defendant Berenson for Summary Judgment be and the same is hereby denied."
2. That the Motion of Third Party Defendant Lloyd's for Summary Judgment be and the same is hereby granted and Summary Final Judgment be and the same is hereby entered in favor of Lloyd's and against Defendant Berenson, and Berenson shall take nothing by his action against Lloyd's.
3. That Defendant Berenson's claim for indemnification against World for expenses (including attorneys' fees) incurred in defense of the main action by Plaintiffs against Berenson, not being in the nature of a third party claim, is hereby dismissed sua sponte. Said dismissal is without prejudice and with leave to be reasserted when and if Berenson is successful in defeating Plaintiffs' claim against him in the main action.[2]
"4. That, subject to the provisions of paragraph 3 of this Order, the Motion of Third Party Defendant World for Summary Judgment be and the same is hereby entered in favor of World and against Defendant Berenson, and Berenson shall take nothing by his action against World."

*38 On appeal from the order of summary judgment entered in favor of the third-party defendants/appellees in the third-party action, Berenson contends that the trial court erred in finding that he was not entitled to indemnification because: (1) article VII of World Jai-Alai, Inc.'s agreement and declaration of trust provides indemnification for the trustees, and Berenson was a trustee and acted as such at all times material to the main action; (2) he is entitled to indemnification for expenses, including attorneys' fees, from World Jai-Alai in defense of the main action where the issues presented by third-party action are integrally related and substantially similar to the issues raised in the main action; (3) World Jai-Alai's certificate of incorporation and its by-laws provide indemnification for directors, officers, employees and agents; (4) Lloyd's Underwriters' motion for summary judgment should not have been granted, since the insurance policy provides indemnification for a trustee of World Jai-Alai, and Berenson maintains he was acting in that capacity at all times material to the main action.

Appellee, World Jai-Alai, Inc., argues that the entry of summary judgment was not, as appellant urges it was, a matter of disputed versus undisputed issues of material fact, but was rather a matter of viewing all possible combinations of claims in light of the law of interference with contract or advantageous business relationships. The appellee discusses the two elements of the subject tort. The first is that the interference by the defendant must be for the purpose of securing a business advantage for himself over the plaintiff.[3] The second is that the interference must be by a third party and not by a party to the contract or business relationship.[4] This appellee further argues that none of appellant's claimed capacities (that of an officer, director, agent, representative or trustee) has legal viability in the context of the main suit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Standard Jury Instructions-Civil Cases
778 So. 2d 264 (Supreme Court of Florida, 2000)
Raychem Corp. v. Federal Insurance
853 F. Supp. 1170 (N.D. California, 1994)
Sloan v. Sax
505 So. 2d 526 (District Court of Appeal of Florida, 1987)
Florida Bar Standard Jury Instructions Civil 85-1
475 So. 2d 682 (Supreme Court of Florida, 1985)
Tamiami Trail Tours, Inc. v. Cotton
463 So. 2d 1126 (Supreme Court of Florida, 1985)
Rabren v. Gulf Towing Co.
434 So. 2d 340 (District Court of Appeal of Florida, 1983)
Tamiami Trail Tours, Inc. v. Cotton
432 So. 2d 148 (District Court of Appeal of Florida, 1983)
Muller v. Stromberg Carlson Corp.
427 So. 2d 266 (District Court of Appeal of Florida, 1983)
Ethyl Corp. v. Balter
386 So. 2d 1220 (District Court of Appeal of Florida, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
374 So. 2d 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berenson-v-world-jai-alai-inc-fladistctapp-1979.