DLL v. Cricket's Termite Control

942 So. 2d 1001, 2006 WL 3452574
CourtDistrict Court of Appeal of Florida
DecidedDecember 1, 2006
Docket5D06-863, 5D06-1147
StatusPublished
Cited by2 cases

This text of 942 So. 2d 1001 (DLL v. Cricket's Termite Control) 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
DLL v. Cricket's Termite Control, 942 So. 2d 1001, 2006 WL 3452574 (Fla. Ct. App. 2006).

Opinion

942 So.2d 1001 (2006)

DE LAGE LANDEN FINANCIAL SERVICES, INC., Appellant,
v.
CRICKET'S TERMITE CONTROL INC., etc., et al., Appellee.

Nos. 5D06-863, 5D06-1147.

District Court of Appeal of Florida, Fifth District.

December 1, 2006.

*1002 Tracye K. Solove and Robert A. Solove, of Solove & Solove, P.A., Miami, for Appellant.

Garry D. Adel, of Blanchard, Merriam, Adel & Kirkland, P.A., Ocala, for Appellee.

ORFINGER, J.

De Lage Landen Financial Services, Inc. ("DLL") appeals an adverse final judgment in its breach of lease claim against Cricket's Termite Control, Inc. d/b/a Cricket's Pest Control and Donald L. McKamey (collectively, "Cricket's"). The trial court refused to enforce the lease, finding it to be illegal. Because we find the lease is legally enforceable, we reverse the final judgment. As a result, the attorney's fee award in favor of Cricket's is also reversed.

In November 2000, Cricket's entered into a written agreement with U.S. Bancorp to lease a Pro Lead PMC Computer Marketing System ("the System"). Mr. McKamey, Cricket's President, personally guaranteed performance of the lease. U.S. Bancorp subsequently assigned its rights under the lease to DLL. The System is essentially a computer and a program that randomly selects and dials the telephone numbers of potential customers and plays a pre-recorded message when a phone is answered. Cricket's intended to use the System to offer its pest control services to people who were not existing customers.

In January 2003, Cricket's received a notice from the Florida Department of Agriculture & Consumer Services ("the *1003 Department") concerning violations of Florida's No Sales Solicitation Law, section 501.059, Florida Statutes (2003). The notice stated that the Department had received complaints that Cricket's had been making telephonic sales calls in violation of section 501.059, which prohibits calls involving "an automated system for the selection or dialing of telephone numbers or the playing of a recorded message when a connection is completed to a number called." § 501.059(7)(a), Fla. Stat. (2003). The notice ordered Cricket's to stop such telephone calls immediately, and informed it that calls made in violation of section 501.059 would subject Cricket's to injunctive relief, including civil penalties of up to $10,000 per call. Upon receipt of this letter, Cricket's immediately stopped using the System and quit making lease payments to DLL.

DLL then filed a suit against Cricket's and Mr. McKamey. In its complaint, DLL alleged that Cricket's defaulted on its contract, and, as a result, owed DLL damages, court costs, interest, and reasonable attorney's fees. Cricket's sole defense was premised on its assertion that the lease was illegal in light of section 501.059 and was, therefore, unenforceable.

A non-jury trial was held before the court. During the trial, Mr. McKamey testified that PMC, the manufacturer, solicited him to purchase the System. During his initial conversation with PMC, Mr. McKamey did not ask about the legality of using the System in Florida. However, Mr. McKamey testified that at a later date, PMC told him that it had checked with its lawyers, and that the System was "perfectly legal." PMC gave Mr. McKamey some references, which he contacted to ensure the System's legality. U.S. Bancorp, the original lessor, also informed Mr. McKamey that PMC had other clients in Florida who were happy with the System, which "led [him] to believe that it's legal." Mr. McKamey explained that the System arrived with a message that had been pre-recorded by PMC. According to Mr. McKamey, he could not change the System to accommodate live messages. When Mr. McKamey turned the System on, it dialed numbers by zip code and then played the pre-recorded message when a connection was made to the number called. Mr. McKamey believed that as long as he did not dial any of the numbers on the "do not call" list, he would be in compliance with Florida law. After he received the notice from the Department notifying him that the System was illegal as it was being used, Mr. McKamey promptly shut down the machine and attempted to contact PMC, only to discover that it had gone out of business.

The trial court entered judgment in favor of Cricket's and subsequently granted Cricket's motion for attorney's fees. Although the trial court made no findings of fact or conclusions of law in its judgment, Cricket's only defense was the alleged illegality of the lease. In this consolidated appeal, DLL seeks review of both the final judgment and the judgment on attorney's fees.

The issue we consider is whether the lease agreement is an enforceable contract, or if it is void for violating the Florida Statutes or Florida public policy. Generally, "[a] contract which violates a provision of the constitution or a statute is void and illegal and, will not be enforced in our courts." Harris v. Gonzalez, 789 So.2d 405, 409 (Fla. 4th DCA 2001). Cricket's argues, and the trial court agreed, that the parties' lease agreement was void and unenforceable because its use of the System violated section 501.059's prohibition of automated telephone solicitation.[1]*1004 We disagree.

A contract is not void merely because a party used the contracted-for item illegally. "If an agreement is capable of being performed in a legal manner, the mere fact that one of the parties to the agreement intended to perform it in an illegal manner will not preclude its enforcement." 17A Am.Jur.2d Contracts § 225 (2006); see also 17A Am.Jur.2d Contracts § 228 (2006) (stating that "where a contract could have been performed in a legal manner as well as in an illegal manner, it will not be declared void because it was in fact performed in an illegal manner, at least if the performance is not seriously injurious to the public order[;] . . . [n]or will a contract be declared void because it might have been performed in an illegal manner, since bad motives are never to be imputed to any person where fair and honest intentions are sufficient to account for his or her conduct").

While no Florida courts have addressed these specific facts, the Arkansas Supreme Court dealt with the same issue on nearly identical facts in Potomac Leasing Co. v. Vitality Centers, Inc., 290 Ark. 265, 718 S.W.2d 928 (1986). In that case, Vitality Centers entered into an agreement with Potomac, to lease an automated telephone system that was manufactured by a company who was not a party to the action. After making a few payments on the lease, Vitality returned the system to Potomac and ceased payment. Potomac sued Vitality to enforce the lease. Vitality, who had planned to use the system to randomly dial phone numbers and play a recorded message advertising its products, claimed that the contract was void because its intended use was illegal in Arkansas, and, therefore, the subject matter of the lease was also illegal. The trial court agreed with Vitality, but the supreme court overruled that decision. Id. at 928-29.

*1005 The Arkansas Supreme Court held that the fact "[t]hat the subject matter of a contract is to be used for an illegal purpose, does not in itself make a contract for the sale of that product void." Potomac, 718 S.W.2d at 929. In support of its holding, the court cited to 6A Arthur L. Corbin, Corbin on Contracts, § 1519 (1962), which elaborates:

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