Evans v. Hydeman

168 So. 2d 183
CourtDistrict Court of Appeal of Florida
DecidedAugust 26, 1964
Docket3773
StatusPublished
Cited by10 cases

This text of 168 So. 2d 183 (Evans v. Hydeman) 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
Evans v. Hydeman, 168 So. 2d 183 (Fla. Ct. App. 1964).

Opinion

168 So.2d 183 (1964)

Luther J. EVANS, Petitioner,
v.
Edwin N. HYDEMAN, Jack Klinger, Joseph F. Lawless, Isidore Levy, Thomas J. McGinty, Stuart L. Moore, Edward Sloan, Howard Steele, James L. Weiskopf, Richard R. White, and G. Dudley Harris, Respondents.

No. 3773.

District Court of Appeal of Florida. Second District.

August 26, 1964.
Rehearing Denied September 24, 1964.

*184 McCune, Hiaasen, Crum & Ferris, Fort Lauderdale, for petitioner.

Burns, Middleton, Rogers & Farrell, Palm Beach, for respondents.

KANNER, Judge (Ret.).

A default order and final judgment consequent upon it were obtained in the court below by defendant-petitioner, Luther J. Evans, against the plaintiffs-respondents, Edwin N. Hydeman, Jack Klinger, Joseph F. Lawless, Isidore Levy, Thomas J. McGinty, Stuart L. Moore, Edward Sloan, Howard Steele, James L. Weiskopf, Richard R. White, and G. Dudley Harris, for failure to plead defensively to a counterclaim. Subsequently, the trial court entered an order setting aside the default and final judgment. Evans then filed in this court a petition "For the Extraordinary Relief of Mandamus, Certiorari, Common Law Certiorari and Prohibition" directed against the mentioned vacating order. There was also filed an appeal. The petition containing the combination of remedies was denied; then this court ordered that the notice of appeal and the transcript of the record be treated and considered as a petition for writ of certiorari.

The salient issues which have emerged relate to jurisdictional power of the trial judge to enter the order setting aside the default and final judgment and the propriety of his action in doing so under the facts and procedures set out by the record as these relate to plaintiffs' motion to vacate.

By their amended complaint filed on July 27, 1962, against Evans and Empire Industries, Inc., plaintiffs sued upon a promissory note executed by Empire in the principal sum of $100,000 and endorsed by Evans. On August 1, Empire's attorney moved for a continuance, stating that he was a member of the Florida Legislature and that this body had on that day been called into special session. The court on August 7 entered an order staying the proceedings and granting a continuance for the period of the legislative session and fifteen day subsequent to it.

On August 9, 1962, Evans filed an answer, setting up three defenses, the first two of which are not relevant here. The third defense was incorporated by reference as a cross-claim against Empire[1] and as the full counterclaim against plaintiffs, with the addition of a prayer divided into three parts. Since it carries the total substance of the counterclaim upon which the default and final judgment were rendered, we shall summarize below, in the main, the principal averments of this third defense.

In April, 1961, certain of the plaintiffs were elected as directors, officers, and executive committee members of Empire. Two of the plaintiffs, as president and treasurer, respectively, issued a total of 284,334 shares of stock of Empire to the eleven plaintiffs, who forty days later, or on November 22, 1961, transferred and sold to *185 Empire for $150,000 all of the stock thus acquired, payable $50,000 in cash and $100,000 through the promissory note sued upon; later, on the same day, those plaintiffs who were directors, officers, and executive committee members submitted their written resignations. Evans at no time was a stockholder, officer, director, or employee of Empire. Empire was never domesticated in Florida. The third defense described as illegal the corporate action of plaintiffs authorizing purchase by Empire of their shares of stock in the corporation, characterized as null and void the promissory note, and stated that Empire was insolvent and was forbidden by statute, section 608.13, F.S.A., from purchasing its own stock in the manner described.

Evans further averred that on November 20, 1961, he had been approached by the officers of Empire and persuaded and induced by representations as to the present and potential financial status of the corporate defendant to lend his credit to it and advance certain funds with which to enable it to purchase from plaintiffs all the shares of stock previously referred to for the consideration mentioned. Those representations were that Empire was solvent, that it owned valuable lands and personal property in Honduras and other Latin American countries, that plaintiffs were a group of dissident minority stockholders who constantly pursued obstructionist tactics to prevent Empire from performing its corporate purposes and realizing its potential financial advantages, that plaintiffs' stock could be purchased by Empire only if the purchase were finalized and completely consummated not later than November 22, 1961, and that, upon removal of plaintiffs, Empire could realize its potential success. These representations, continued the third defense, were false and were fraudulently made for the purpose of inducing Evans to act as he did within a short period of time without making any independent investigations. It was then stated that plaintiffs, acting by and through their agents, had actual knowledge of the representations, knew that they were false, and knew that Empire was without financial assets to pay its promissory note; further, that plaintiffs through their agents were directly the cause of Evans' becoming an accommodation endorser on the promissory note. Relying on these representations, Evans, on November 20, with his own funds purchased two cashiers checks payable to himself, one for $25,000 and the other for $50,000. On November 22, he endorsed and delivered to Empire Industries, Inc. the $25,000 check and endorsed and delivered the $50,000 check to Stuart L. Moore and Richard R. White as agents, the latter having been further endorsed for deposit to the account of Joseph F. Lawless-trustee, Stuart L. Moore, and Richard R. White. Evans received nothing for the funds thus advanced and received nothing for his endorsement of the promissory note.

The prayer of the counterclaim was a multiple one, seeking a money judgment against the plaintiffs in the sum of $50,000 plus interest, a decree adjudicating as null and void Evans' endorsement on the promissory note, and a further declaratory decree adjudicating as null and void the transaction between the plaintiffs and Empire.

Under date of September 19, 1962, Evans' counsel wrote to plaintiffs' attorneys a letter[2] which is at the core of this dispute and which dealt with time for filing of responsive *186 pleadings to the counterclaim. On November 29, 1962, Evans filed an application for default order and judgment. This application, subscribed to by oath of counsel for Evans, showed filing of Evans' answer with counterclaim and cross-claim; a copy of the letter footnoted below; departure of Evans' counsel for a vacation on September 22 and his return on October 19; motions of Empire to dismiss the amended complaint and the cross-claim on November 1 and November 5, respectively. The application went on to state that plaintiffs were required to file their reply or defensive motions within 20 days after service of the counterclaim, that the period expired Wednesday, August 29, that the September 19 letter gave additional time but that 112 days had expired without the filing of any responsive pleadings. In his final judgment which, with the default, was entered on November 29, 1962, the trial judge adjudicated as void the endorsement and delivery of the promissory note and the transaction between plaintiffs and Evans.

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Bluebook (online)
168 So. 2d 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-v-hydeman-fladistctapp-1964.