Georgia-Pacific Corp. v. Squires Development

387 So. 2d 986
CourtDistrict Court of Appeal of Florida
DecidedAugust 1, 1980
Docket76-2395, 78-420 and 78-639
StatusPublished
Cited by7 cases

This text of 387 So. 2d 986 (Georgia-Pacific Corp. v. Squires Development) 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
Georgia-Pacific Corp. v. Squires Development, 387 So. 2d 986 (Fla. Ct. App. 1980).

Opinion

387 So.2d 986 (1980)

GEORGIA-PACIFIC CORPORATION, Appellant,
v.
SQUIRES DEVELOPMENT CORPORATION, Appellee.
SQUIRES DEVELOPMENT CORPORATION, Appellant,
v.
Conrad J. De SANTIS, and Others, Appellees.
GEORGIA-PACIFIC CORPORATION, Appellant,
v.
Conrad J. De SANTIS, and Others, Appellees.

Nos. 76-2395, 78-420 and 78-639.

District Court of Appeal of Florida, Fourth District.

August 1, 1980.

*987 Basil E. Dalack and Donald J. Beuttenmuller, Jr., of Walton, Lantaff, Schroeder & Carson, West Palm Beach, for Georgia-Pacific Corp.

Paul D. Mark Lucas and Michael J. Amendola of Hamilton, James, Merkle & Young, West Palm Beach, for Squires Development Corp.

Timothy W. Gaskill of De Santis, Cook, Meehan, Cohen, Gaskill & Silverman, P.A., North Palm Beach, for De Santis and others.

BERANEK, Judge.

This matter involves three consolidated appeals from two different final judgments entered in separate lawsuits. The general situation involved a condominium office in which defective wood paneling was installed. The manufacturer of the paneling, the developer/builder of the condominium unit, and the purchasers of the condominium were involved in two lawsuits resulting in the two final judgments under attack. The matter is extremely confused and we sympathize with the trial court in attempting to sort out the inartfully pled claims. We conclude that the final judgments below must be reversed. On remand, it will be *988 necessary to consolidate the claims and require total repleading of the issues. We will first attempt to outline the facts giving rise to the litigation, then summarize the status of the cases, the issues tried and the damages awarded, and finally, discuss the errors requiring reversal.

There are three entities involved. Squires Development Corporation was a developer involved in the construction and sale of the condominium office unit located in a building complex it constructed. De Santis and Cook, P.A., was a law firm composed of Conrad De Santis and Robert Cook. The owners of this professional association purchased a new condominium unit from Squires and had the developer install wall paneling in it. Georgia-Pacific Corporation was a manufacturer of various wood products who manufactured and sold the particular paneling in question. These three parties, Squires, De Santis, and Georgia-Pacific, were involved in two separate lawsuits, both relating to the consequences of a defect in the wood paneling which had been supplied by a retailer who was also initially involved in the litigation but is not involved in this appeal.

The facts are generally as follows. The De Santis law firm purchased an undecorated condominium office from Squires on January 7, 1974, for a total of $60,236.50. This price included the cost of paneling which the buyers chose to have installed in the office. The De Santis group selected a particular wood paneling manufactured by Georgia-Pacific. A supplier named Ray Tylander, Inc., sold the paneling and delivered it to Squires for installation in the unit. De Santis & Cook took possession of their unit and attempted to practice law there. After the unit had been occupied for a brief period, it became evident that the paneling was defective. For unknown reasons, the paneling emitted a substance or fumes which irritated the eyes, nose, throat and lungs of all persons remaining in the office for any period of time. Although not without dispute, there was substantial evidence that the paneling made the office totally unuseable as a place in which to practice law. De Santis complained to Squires, who, in turn, complained to the retailer and to Georgia-Pacific. The parties had numerous conferences and various steps were taken in an attempt to remedy the problem. Georgia-Pacific told De Santis to run the air conditioners constantly. This was done, but the offending fumes remained. The walls were sprayed with a special material and were eventually washed down. The problem remained unabated.

De Santis made complaints to Squires and after approximately three months of occupancy demanded that Squires consider removing the defective paneling. At approximately the same time, De Santis and Squires were also negotiating regarding the possibility of De Santis' purchasing a new office unit. In May, 1974, after approximately four to five months of occupancy, De Santis moved out of the first unit into a second unit within the same complex.[1] In a complex contractual arrangement, De Santis and Squires agreed to exchange the office with the defective paneling for another office twice the size of the first office. Squires gave De Santis a $64,496.73 credit on the purchase of the new office unit which had a sales price of $130,000. The $64,496.73 credit covered the initial purchase price of $60,236.50, plus reimbursement for all of the specialized improvements, including paneling, carpeting and furnishings, which De Santis had put in the first unit. De Santis did not actually need or want a unit twice as large as the one initially purchased. However, De Santis and Squires had an additional side agreement regarding De Santis' sub-leasing half of the new unit to a sub-tenant and Squires' cooperation in providing such a tenant. De Santis did sub-lease half of the new unit. De Santis apparently moved into that unit and practiced law without difficulty. The financial details of the exchange of the old unit for the new units are confusing to say the least. When Squires took back the initial unit, it somehow assumed the mortgage and also began paying the monthly maintenance *989 fees and taxes on it. Despite this, De Santis still remained liable on the mortgage but apparently no demand was ever made on De Santis for this obligation.

Also, in May, 1974, Squires offered to sell the initial condominium unit to Georgia-Pacific for $64,496.73, the same price it credited De Santis for the unit. At this point, the paneling was still in place. Georgia-Pacific rejected this offer of sale but offered to pay Squires $7,000, which Georgia-Pacific estimated would completely cover the costs of removing and replacing the paneling. The evidence at the later trials showed repairs could have been accomplished for less than the $7,000 offered. Squires rejected this cost of cure approach and continued to hold the unit. Squires later asserted it did incur expenses in doing so.

The condominium unit was eventually sold by Squires to a Dr. Ackerman in August, 1975, for $57,000, with the paneling still in place. After the period of approximately two years, it had become inoffensive and was acceptable for it intended use as a wall covering.

On the basis of these facts, two suits were instituted. On October 10, 1974, De Santis filed suit against both Squires and Georgia-Pacific in Case No. 74-2721. On March 25, 1975, Squires filed a cross-claim for indemnity against Georgia-Pacific. On October 15, 1974, five days after the initial suit was filed, Squires also filed a separate suit against Georgia-Pacific designated as Circuit Court Case No. 74-2779. The first case of De Santis v. Squires and Georgia-Pacific was a non-jury matter. The second filed case of Squires vs. Georgia-Pacific was a jury case and was tried and determined before trial of the earlier filed non-jury case.

The two cases proceeded independently of each other, and the trial court denied Georgia-Pacific's motions to consolidate them. The eventual judgment in Case No. 74-2779 (the jury case) was in favor of Squires against Georgia-Pacific in the amount of $16,030. In Case No.

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Bluebook (online)
387 So. 2d 986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-pacific-corp-v-squires-development-fladistctapp-1980.