Estate of Bobinger v. Deltona Corp.

563 So. 2d 739, 1990 WL 77248
CourtDistrict Court of Appeal of Florida
DecidedJune 8, 1990
Docket89-01524
StatusPublished
Cited by17 cases

This text of 563 So. 2d 739 (Estate of Bobinger v. Deltona 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
Estate of Bobinger v. Deltona Corp., 563 So. 2d 739, 1990 WL 77248 (Fla. Ct. App. 1990).

Opinion

563 So.2d 739 (1990)

ESTATE OF Margarete BOBINGER, Dino Spennato, Max Wimmer, Xavier Huber, Wilhemus J. Jansen, Martina Jansen, Max Schaeubli, and Gamil F. Zeyadi, Individually, Jointly, and Severally, and On Behalf of All Others Similarly Situated, Appellants,
v.
The DELTONA CORPORATION, a Delaware Corporation, Appellee.

No. 89-01524.

District Court of Appeal of Florida, Second District.

June 8, 1990.

*740 Mercedes Busto, Michael G. Nearing and Robbie D. Lake of Bailey & Hunt, Miami, and Roland Langen, Miami Beach, for appellants.

Joseph Mancilla, Jr. of Mancilla & Betz, P.A., Coral Gables, for appellee.

DANAHY, Acting Chief Judge.

This is an appeal from the dismissal with prejudice of a class action complaint alleging fraud upon the court. We reverse. Although the class allegations sometimes fall short of the pleading requirements of Florida Rule of Civil Procedure 1.220, we cannot say that the deficiencies are incapable of amendment. We disagree with the trial court in its holding that, as a matter of law, a class action cannot be grounded upon extrinsic fraud. We do, however, agree that dismissal was proper in this case because the complaint, as it presently is framed, fails to state a cause of action for extrinsic fraud. Nevertheless, we must reverse because the trial court's order stated that the dismissal was with prejudice. The appellants should have been allowed an opportunity to amend their complaint.

A. FACTUAL BACKGROUND

An outline of the events leading up to the filing and dismissal of this complaint is necessary for a complete understanding of the allegations of fraud. The problems at issue here were spawned by the appellee's (Deltona) frustrated attempts to develop *741 and sell residential and commercial properties on Marco Island. Deltona's development of the properties, which are located on environmentally sensitive wetlands, was halted when it failed to obtain necessary dredge and fill permits from state and federal authorities. Deltona's inability to develop these lots resulted in its failure to fulfill its part of the bargain with the thousands of purchasers who had already signed installment sales contracts. After negotiations with the State of Florida, Department of Business Regulation, Division of Land Sales and Condominiums, Deltona established the Marco Island Option Program which provided a method of lot exchanges, refunds and combinations of both, to its lot purchasers. Deltona was required to place additional properties in trust to insure that sufficient money would be available to secure the refunds under the Option Program. The state continues to oversee the Option Program.

The appellants are all purchasers of undeveloped lots who paid the money as required under their individual installment sales contracts but who have received neither the agreed-upon property, nor a refund, nor have had their claims otherwise settled through the Option Program. In March of 1984, Deltona conveyed fee simple title to all the lots it could not develop to the State of Florida as part of an overall agreement with the state that included the Option Program. Because all these contracts were filed in the public records, they constituted clouds on the title of the lands which Deltona had conveyed to the state. When the contract to which each appellant was a party was not satisfied by either the offer and acceptance of a refund or the substitution of an alternative lot to the mutual satisfaction of Deltona and the purchaser, Deltona instituted suits in the circuit court of Collier County seeking to quiet title to each of the lots covered by the installment sales contracts of the appellants. The suits also sought to cancel each contract. All of the class representatives/appellants are citizens and residents of foreign countries who were solicited by Deltona in their homelands and who entered into the sales contracts there. In the instant case, they sought to represent a class which includes similarly situated plaintiffs or military personnel stationed overseas.

No appellant or purported class member made an appearance to contest the quiet title action instituted against him or her. Consequently, defaults and final judgments thereon were entered quieting title to each of the appellants' lots and cancelling their contracts of record. When the appellants received notices of these judgments, they filed a class action complaint in the trial court in an effort to set aside all the defaults and final judgments. The trial court dismissed this complaint on the grounds that it failed sufficiently to allege a class action and, further, that a class action on extrinsic fraud is not allowed in Florida according to the rule announced in Osceola Groves, Inc. v. Wiley, 78 So.2d 700 (Fla. 1955), and Lance v. Wade, 457 So.2d 1008 (Fla. 1984). The dismissal was without prejudice to the refiling of individual suits to set aside the defaults, which the individual appellants subsequently did. These individual suits were then stayed, and continue to be stayed, pending the completion of these appellate proceedings.

The allegations contained in the class action complaint, which we summarize below, attempted to state a cause of action in extrinsic fraud:

1. The default judgments should be set aside as a product of mistake, inadvertence or excusable neglect in that although some of the appellants had received notice of the quiet title actions by mail, such notice was received beyond the time necessary to file an answer or the pleadings were in English which many of the appellants did not read or write so that they could not understand the import of the pleadings.
2. Although a quiet title action is an action in equity, Deltona requested the relief of cutting off appellants' rights under the contract (i.e., to get a refund) which relief is only obtainable in an action at law, specifically by requesting that the court cancel the contracts referred *742 to in the complaint for quieting title.
3. That Deltona manipulated the blind filing system in Collier County so that all the quiet title suits would be heard by one judge.
4. That Deltona failed to plead a valid cause of action for the exercise of long-arm jurisdiction over the appellants who are not subject to long-arm jurisdiction pursuant to section 48.193, Florida Statutes.
5. That Deltona alleged in the quiet title actions that service had been had on all appellants by publication which was not properly available to Deltona since the appellants were available for personal service and that Deltona knew their exact addresses; that Deltona had filed false affidavits stating that Deltona had made diligent inquiry to discover the appellants' residences; and that service by publication is improper and inadequate notice to extinguish one's contractual rights as Deltona was actually seeking to do.

The trial court dismissed the complaint based on two grounds: (1) that the appellants failed to plead their class action allegations sufficiently; and (2) that extrinsic fraud claims in Florida cannot be tried in the class action form.

B. SUFFICIENCY OF CLASS ALLEGATIONS

We start by reviewing the special pleading requirements for class action complaints as outlined in Florida Rule of Civil Procedure 1.220. Generally, the plaintiff must allege the existence of a class, demonstrate that the four prerequisites specified in rule 1.220(a) are satisfied and that the action meets the criteria for one of the three types of class actions defined in rule 1.220(b).

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Bluebook (online)
563 So. 2d 739, 1990 WL 77248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-bobinger-v-deltona-corp-fladistctapp-1990.