Bond v. Koscot Interplanetary, Inc.

246 So. 2d 631
CourtDistrict Court of Appeal of Florida
DecidedApril 2, 1971
Docket70-722
StatusPublished
Cited by30 cases

This text of 246 So. 2d 631 (Bond v. Koscot Interplanetary, 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
Bond v. Koscot Interplanetary, Inc., 246 So. 2d 631 (Fla. Ct. App. 1971).

Opinion

246 So.2d 631 (1971)

Marjorie BOND et al., Appellants,
v.
KOSCOT INTERPLANETARY, INC., a Florida Corporation, Glenn W. Turner, Individually and As Chief Executive Officer of Koscot Interplanetary, Inc., Alice Ann Turner and Fantastic, Inc., a Florida Corporation, Appellees.

No. 70-722.

District Court of Appeal of Florida, Fourth District.

April 2, 1971.

*632 J. Russell Hornsby of the Law Offices of J. Russell Hornsby, Orlando, for appellants.

Tanya M. Plaut and Gordon D. Simonds, Orlando, for appellees.

*633 MAGER, Judge.

This is an appeal from an order entered by the trial court dismissing with prejudice plaintiffs-appellants' complaint. Defendants-appellees filed a motion to strike or in the alternative to dismiss plaintiffs' complaint substantially on the basis that the allegations therein did not state a cause of action. The trial court granted the motion to dismiss with prejudice due to the fact that plaintiffs orally announced their intention not to amend the complaint.

Before discussing the applicable principles relating to motions to dismiss we feel that it would not be inappropriate to observe that when a complaint is drawn in such a manner as to reflect a departure from the general principles of pleading and practice, the judicial labors become unnecessarily encumbered to the point that the substantive merits of the controversy are sometimes obscured. This situation can be avoided if due care is taken by the drafter so that the controversy can be resolved on the basis of substance rather than form.

In Russell v. Community Blood Bank, Inc., Fla.App. 1966, 185 So.2d 749, 750, it is stated:

"* * * [T]hat a defendant moving to dismiss a complaint is deemed, for the purpose of ruling on the motion, to have admitted all facts well pleaded in the complaint, as well as all reasonable inferences arising from those facts. E.g., Jackson Tom, Inc. v. Carlton, Fla.App. 1961, 133 So.2d 752." (Emphasis added.)

In Rice v. White, Fla.App. 1962, 147 So.2d 204, 207, it is likewise stated:

"Under our practice a motion to dismiss a complaint on the ground of failure to state a cause of action is addressed exclusively to the allegations of the complaint, the well-pleaded allegations being assumed to be true for the sole purpose of determining the validity of the motion. In other words, the court determines whether the plaintiff, if he later proves the allegations of his complaint, would thereby establish a cause of action against the defendant." (Emphasis added.)

In Lytell v. McGahey Chrysler-Plymouth, Inc., Fla.App. 1965, 180 So.2d 354, 355, citing Regan v. Davis, Fla.App. 1957, 97 So.2d 324, it has been held that:

"If a complaint states a cause of action upon any ground, a motion to dismiss the complaint for failure to state a cause of action should be denied. * * " (Emphasis added.)

With these principles in mind we now turn to the allegations in plaintiffs' complaint to ascertain whether they are salvageable to such extent that justice requires a determination that a cause of action exists. Plaintiffs' complaint embodies four counts or causes of action: (1) rescission of contract; (2) recovery of purchase price for securities sold in violation of state security acts; (3) conspiracy, and (4) motion to enforce consent decree or in alternative for contempt. With regard to Count No. 1, defendants' motion to dismiss asserts that the allegations therein "do not state a cause of action against defendants because there is no basis in law for rescission of contract under the facts as therein alleged even if all the facts were true". In setting up the first cause of action plaintiffs allege the existence of "contracts with Koscot Interplanetary, Inc., a Florida corporation, which are attached hereto marked Exhibits 1 through 17 and made a part hereof by reference * * *".

Rule 1.130, F.R.C.P., 30 F.S.A., states "Any exhibit attached to a pleading shall be considered a part thereof for all purposes". Exhibits 1 through 17 contain, in part, "Distributor Application and Agreements" allegedly signed by several of the plaintiffs by virtue of which they are apparently authorized to function as wholesale distributors for the sale of Koscot cosmetic products.

*634 Other allegations in support of Count 1 are as follows: a description of the method by which distributorships or franchises are alleged to be sold; assertions that the profit to be made by a distributor "lies not in the sale of cosmetics but in the securing of other distributors under this distributor" with a "commission or finder's fee to be paid" by Koscot to each distributor for each subsequent distributor recruited; a description of the various levels in a distributorship plan with persons at each level receiving a "commission or finder's fee for each person recruited;[1] an assertion that "the scheme or plan as being operated and being promoted by Koscot", (described in the complaint) "is believed to be and therefore alleged to be violative of Section 849.091, Florida Statutes, F.S.A."; an assertion "that such contracts are void because they are contrary to the established public policy of the state". Plaintiffs in their prayer for relief assert that "the court should void the contract herein attached" and "return all monies paid for directorships and supervisors to the plaintiffs".

Irrespective of the deficiencies in draftsmanship, applying all reasonable inferences to the allegations in Count 1 as well as the exhibits attached thereto, we must conclude that a cause of action exists against Koscot only. In their motion to dismiss defendants have admitted for the purposes of such motion: that the plaintiffs "had contracts with Koscot"; that the method by which such distributorships are granted and the plan of Koscot's operation is as described in the complaint and attachments. While these allegations, although admitted by defendants, do not state a cause of action to support rescission, the allegations of the complaint appear to state a cause of action on other grounds, namely, the voiding of a contract on the basis that it violates a statute or is against public policy and, accordingly, the motion to dismiss should be denied.[2] See Lytell v. McGahey Chrysler-Plymouth, Inc., supra, and Regan v. Davis, supra.

Defendants' admissions are "solely for the purpose of determining, if the allegations are proven, whether there would be established a cause of action against the defendants". See Rice v. White, supra. See also Yoo Hoo of Florida Corp. v. Catroneo, Fla.App. 1965, 175 So.2d 220. If the plaintiffs are able to prove that the method and alleged scheme as described in their complaint constitutes a pyramid or lottery as prohibited by Section 849.091, the contract embodying such scheme or plan would be unenforceable and void. M. Lippincott Mortgage Investment Co. of Fla. v. Childress, Fla.App. 1967, 204 So.2d 919; Florida Discount Centers, Inc. v. Antinori, Fla.App. 1969, 226 So.2d 693; Florida Discount Centers, Inc. v. Antinori, Fla. 1970, 232 So.2d 17; Local No. 234, etc. v. Henley & Beckwith, Inc., Fla. 1953, 66 So.2d 818; 7 Fla.Jur., Contracts §§ 59-72; and 17 Am.Jur.2d, Contracts, §§ 165-180, 216-240.

The foregoing citations indicate the broad general rule that an agreement which violates a statute or is contrary to public policy is illegal, void and unenforceable as between the parties.

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