Callaway Land & Cattle Co., Inc. v. Banyon Lakes C. Corp.

831 So. 2d 204, 2002 WL 31174884
CourtDistrict Court of Appeal of Florida
DecidedDecember 4, 2002
Docket4D01-2032
StatusPublished
Cited by32 cases

This text of 831 So. 2d 204 (Callaway Land & Cattle Co., Inc. v. Banyon Lakes C. Corp.) 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
Callaway Land & Cattle Co., Inc. v. Banyon Lakes C. Corp., 831 So. 2d 204, 2002 WL 31174884 (Fla. Ct. App. 2002).

Opinion

831 So.2d 204 (2002)

CALLAWAY LAND & CATTLE CO., INC., a Florida corporation, and Callaway Land & Cattle Co. Limited Partnership, a Florida limited partnership, Appellants,
v.
BANYON LAKES C. CORP., a Florida corporation; John Nierlich; Richard Puzzitiello, Sr.; William C. Wingfield, individually; Reserve Homes, Ltd., L.P., a Delaware limited partnership, by and through its general partner, Kolter Property Development, L.L.C., a Delaware limited liability company; and POD 31 Homes, Inc., a Delaware corporation, Appellees.

No. 4D01-2032.

District Court of Appeal of Florida, Fourth District.

October 2, 2002.
Concurring Opinion on Denial of Rehearing December 4, 2002.

*205 Alan S. Polackwich, Sr. of Clem, Polackwich, Vocelle & Berg, L.L.P., Vero Beach, for appellants.

Ivan J. Reich and Joann Nesta Burnett of Becker & Poliakoff, P.A., Fort Lauderdale, for Appellees Banyon Lakes C. Corp., John Nierlich, and Richard Puzzitiello, Sr.

STONE, J.

Callaway Land & Cattle Co., Inc. (Callaway) appeals the dismissal of its counterclaim where the trial court found the disparagement of title claim to be permissive and, thus, barred by the statute of limitations. The trial court also dismissed claims for tortious interference with a contractual relationship and abuse of process because they were based on the same facts and circumstances as the disparagement of title claim. We affirm.

*206 Banyon Lakes C. Corp. (Banyon) sued Callaway in March 1997, for damages and specific performance based upon Callaway's anticipatory breach of an option to purchase land and for fraud in the inducement. According to the fourth amended complaint, Banyon's predecessor in interest, Bridlewood, purchased property within a Callaway planned unit development in April 1996. In connection with the purchase, Bridlewood and Callaway entered into an option agreement granting Bridlewood the right to purchase certain other parcels. In September 1996, however, Callaway notified Bridlewood that it was cancelling the options.

Banyon filed this suit against Callaway for breach of contract along with a lis pendens containing a legal description of the option parcels. In March 1997, Banyon filed an amended lis pendens with its fourth amended complaint.

In March 2001, Callaway filed an amended counterclaim containing counts against Banyon, and two of its principals, for (i) disparagement of title, (ii) tortious interference with a contractual relationship between Callaway and a third party, Kolter Entities, and (iii) abuse of process. Callaway alleged that in 1997, it was engaged in negotiations with Kolter for the sale of a portion of the previously optioned property. An agreement with Kolter was reached in September 1997. Callaway alleged that both before and after the execution of the Kolter agreement, Banyon engaged in conduct designed to prevent Callaway from selling the property to Kolter.

In its counterclaim, Callaway alleged that Banyan made false statements and threats to Kolter, claiming that it held a valid and enforceable option and other rights to a portion of the property. In March 1997, Banyon recorded a copy of the option agreement that, according to Callaway, had been terminated. The counterclaim asserts that Banyon's conduct interfered with Callaway's purchase and sale agreement with Kolter and that such actions amounted to disparagement of title, interference with a contractual relationship, and abuse of process.

Banyon moved to dismiss the amended counterclaim as to all counts, asserting that they were permissive and not compulsory counterclaims. As such, they were subject to the applicable statute of limitations, which Banyon asserts is two years as to all Callaway claims under section 95.11(4)(g), Florida Statutes. Banyon argued that the last of the alleged defamatory statements occurred in April 1998 and, thus, the time for bringing an action expired in April 2000. Banyon also argued that the contract interference claim and the abuse of action claim were time barred because they arose from the same facts and circumstances that constitute the basis for the disparagement (slander) of title count. The trial court dismissed all counts of the counterclaim.

First, the trial court correctly determined that Callaway's counterclaim was permissive. Thus, the disparagement of title claim was barred by the two year limitations period governing actions for libel and slander.

Second, the trial court correctly decided that the counts for interference with contract and abuse of process were also barred by virtue of applying the "single publication/single action" rule, a principle applicable in defamation claims.

Initially, as to the dismissal of the disparagement of title claim, the trial court correctly recognized that Banyon's alleged conduct does not constitute grounds for a compulsory counterclaim. As to this conduct, no tolling of the statute of limitations is permissible as would be allowed in the *207 case of compulsory counterclaim. See Stein v. Feingold, 629 So.2d 998, 999 (Fla. 3d DCA 1993)

Florida Rule of Civil Procedure 1.170(a) requires a party to state as a counterclaim any claim that "arises out of the transaction or occurrence that is the subject matter of the opposing party's claim...." A counterclaim not arising out of the transaction or occurrence that is the subject matter of the opposing party's claim is deemed permissive. Fla. R. Civ. P. 1.170(b). The supreme court has adopted the "logical relationship" test in determining whether a counterclaim is compulsory or permissive. Londono v. Turkey Creek, Inc., 609 So.2d 14, 20 (Fla.1992). The test is as follows:

[A] claim has a logical relationship to the original claim if it arises out of the same aggregate of operative facts as the original claim in two senses: (1) that the same aggregate of operative facts serves as the basis of both claims; or (2) that the aggregate core of facts upon which the original claim rests activates additional legal rights in a party defendant that would otherwise remain dormant.

Id.

Applying the first prong of the Londono standard, the operative facts which serve as the basis for Banyon's breach of contract claim do not serve as the basis for Callaway's counterclaims. While Banyon's complaint focuses on the breach of the agreement, Callaway's counterclaim focuses on Banyon's actions after the alleged breach. The counterclaim is based on allegations that Banyon maliciously and unlawfully undertook actions to cloud the title to Callaway's property in order to prevent its disposition by Callaway to Kolter. Specifically, the counterclaim alleges that Banyon spread false information about the property to Kolter, illegally attempted to record the option agreement, and filed numerous motions for lis pendens for the purpose of further clouding the title to the property.

Applying the second prong of the Londono standard, the aggregate core of facts upon which the breach of contract action is based do not "activate" additional legal rights in Callaway that would have otherwise remained dormant. See Aguilar v. Southeast Bank, 728 So.2d 744 (Fla.1999)(holding that breach of one agreement did not relate or support the breach of a separate and distinct agreement).

In light of the fact that a permissive counterclaim is subject to the applicable statute of limitations, the trial court correctly held that the action for disparagement of title was barred by the two year statute of limitations under section 95.11(4)(g), Florida Statutes (1999).

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Cite This Page — Counsel Stack

Bluebook (online)
831 So. 2d 204, 2002 WL 31174884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callaway-land-cattle-co-inc-v-banyon-lakes-c-corp-fladistctapp-2002.