FIRST NAT. BANK OF LAKE PARK v. Gay

694 So. 2d 784, 1997 WL 227450
CourtDistrict Court of Appeal of Florida
DecidedMay 7, 1997
Docket95-1231
StatusPublished
Cited by9 cases

This text of 694 So. 2d 784 (FIRST NAT. BANK OF LAKE PARK v. Gay) 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
FIRST NAT. BANK OF LAKE PARK v. Gay, 694 So. 2d 784, 1997 WL 227450 (Fla. Ct. App. 1997).

Opinion

694 So.2d 784 (1997)

FIRST NATIONAL BANK OF LAKE PARK, Appellant/Cross-Appellee,
v.
Luella GAY, as Trustee of the Charles L. Gay and Luella Gay Trust, Appellee/Cross-Appellant.

No. 95-1231.

District Court of Appeal of Florida, Fourth District.

May 7, 1997.
Rehearing, Rehearing, Certification of Question and Certification of Conflict Denied June 10, 1997.

*786 Kathleen J. Loggins of Gibson & Adams, P.A., West Palm Beach, for appellant/crossappellee.

Richard H. Gaunt, Jr. of Gaunt, Pratt, Radford & Methe, P.A., West Palm Beach, for appellee/cross-appellant.

Rehearing, Rehearing En Banc, Certification of Question and Certification of Conflict Denied June 10, 1997.

WARNER, Judge.

This appeal arises from a final judgment in favor of a lessor on an action involving a breach of a commercial lease. Appellant, First National Bank, as lessee, claims that the trial court erred in requiring it to elect its remedy on the day of trial, in failing to give a jury instruction on "best efforts," in excluding evidence regarding conditions of the contract, and in refusing to have a question on the interrogatory verdict form as to appellant's affirmative defenses to appellee's counterclaim. We agree with appellant's contentions and reverse.

In September 1989, appellee Gay, as lessor, and appellant/lessee entered into a commercial lease for property to be used as a bank branch office. The lease of the current tenant, Barnett Bank, was to expire October 31, 1992, with First National's five year lease to commence November 1, 1992. The parties agreed in a provision of the lease to use their best efforts and reasonable diligence to induce Barnett to terminate the lease early. First National made several efforts to this end, and Gay testified that she also made some phone calls. After obtaining the Barnett lease in discovery, First National argued that a provision of the Barnett lease provided for the lessor's option to terminate the lease if Barnett ceased to operate the premises as a commercial bank. Barnett vacated the premises in December 1989 but continued to pay rent to Gay until the normal expiration of the lease.

While the lease between First National and Gay did not contain any provision which provided for the restoration of the premises to their original condition prior to First National's occupancy, First National sought to introduce parol evidence that Gay had advised First National that Barnett had the obligation to restore the property to its original condition, and that when asked what that condition was, she showed the bank officers floor plans representing the interior configuration of the property prior to its use as a bank. Letters between the parties were also proffered to show that the property was to be restored to its original condition when delivered.

In addition, when the lease was signed there was a roof-top sign bolted to the building. First National claimed that this was of material significance to it in entering into the lease. However, Barnett cut down the sign before its lease expired, arguing that it had belonged to Barnett. First National discovered that it could not get a permit to erect a similar sign.

Because Gay did not deliver the premises to First National in their original condition and the rooftop sign had been removed by the date the lease was to commence, First National advised Gay that she could not perform in a timely manner. First National repudiated the lease and filed suit both for breach of contract and rescission of the lease. Gay counterclaimed, alleging that First National breached the lease by failing to take possession.

Just prior to trial, the court made First National elect whether it wished to proceed on its contract remedy or its rescission claims. Its objection to the election prior to trial being overruled, First National pursued its contract remedy. After a jury trial, the jury found for Gay and awarded $100,000 in damages. It is from that judgment that this appeal is taken.

In its first point on appeal, First National argues that the trial court erroneously granted Gay's motion to require First National to elect its remedy prior to the commencement of the trial. We agree. Even where remedies are mutually exclusive, an election between such remedies can be made at any time prior to the entry of judgment. Barbe v. Villeneuve, 505 So.2d 1331 (Fla.1987). Although First National could recover only on one remedy, it had the right to await the outcome of the entire trial and elect its remedy at the end of trial. The proper procedure to follow in such a case is outlined in Goldstein v. Serio, 566 So.2d 1338 *787 (Fla. 4th DCA 1990). Where one remedy is a legal remedy to be tried to the jury and one is an equitable action for the court to decide, the factual issues should be submitted to the jury with an interrogatory verdict form so that the jury would be required to resolve the specific factual issues in dispute. Thereafter, the plaintiff would be required to elect the remedy. As in Goldstein, here requiring the premature election of remedies was reversible error.

The trial court also erred in refusing to allow First National to put on evidence that the property was to be delivered to First National in its "original condition" as defined by the oral representations of Gay prior to the signing of the lease. That Gay could not deliver the premises in this condition was used as a defense to Gay's claim that First National repudiated the lease. One exception to the parol evidence rule allows the admission of an oral agreement which is shown by clear, precise, and indubitable evidence to establish a contemporaneous oral agreement which induced the execution of the written contract. Furlong v. First Nat'l Bank of Hialeah, 329 So.2d 406, 408 (Fla. 3d DCA 1976); Wise v. Quina, 174 So.2d 590 (Fla. 1st DCA 1965). The testimony proffered by First National was precise and detailed regarding the representation as to what condition the property would be in when possession was delivered to First National. Furthermore, there was documentary evidence in the form of blueprints and letters of the parties confirming First National's understanding. The exclusion of the evidence was not harmless error because it would have supported First National's defense that Gay did not perform her obligations under the lease. It would also be relevant to the claim of rescission on retrial.

First National also contends that the trial court erred in refusing to give an instruction on "best efforts" in connection with its claim that Gay had failed to use her best efforts to obtain Barnett Bank's early termination of its lease. The instruction First National submitted was as follows:

The contractual term "best efforts" imposes a legal duty of performance more demanding than mere competence, due diligence, or good faith. It requires the party owing the duty to take all action and do all things necessary to consummate the transaction contemplated by the agreement. "Best efforts" means maximizing the contractual benefits of the person to whom the duty is owed even if the benefits to the one owing the duty are reduced. If the duty of best efforts is owed, it must be performed even at a loss.

When presented, the court commented that "the way that reads, you would almost think they have to take an UZI submachine gun and go down there and say `end this lease.'" The trial court denied the instruction, determining that the parties could argue the meaning of the term.

We can locate no definition of "best efforts" in Florida law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Standard Jury Instructions—Contract & Business Cases
116 So. 3d 284 (Supreme Court of Florida, 2013)
Hazara Enterprises, Inc. v. Motiva Enterprises, LLC
126 F. Supp. 2d 1365 (S.D. Florida, 2000)
Liddle v. AF Dozer, Inc.
777 So. 2d 421 (District Court of Appeal of Florida, 2000)
Force v. ITT Hartford Life & Annuity Insurance
192 F.R.D. 592 (D. Minnesota, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
694 So. 2d 784, 1997 WL 227450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-of-lake-park-v-gay-fladistctapp-1997.