Goodwin v. Alexatos

584 So. 2d 1007, 1991 Fla. App. LEXIS 862, 1991 WL 11697
CourtDistrict Court of Appeal of Florida
DecidedFebruary 7, 1991
DocketNos. 89-1005, 89-1024 and 89-1774
StatusPublished
Cited by10 cases

This text of 584 So. 2d 1007 (Goodwin v. Alexatos) 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
Goodwin v. Alexatos, 584 So. 2d 1007, 1991 Fla. App. LEXIS 862, 1991 WL 11697 (Fla. Ct. App. 1991).

Opinion

PETERSON, Judge.

John M. Goodwin appeals the trial court’s entry of:

(a) Judgment denying relief on Count I of his complaint seeking rescission and cancellation.
(b) Judgment denying recovery on Count II seeking damages for breach of contract; judgment was entered after a jury trial and denial of a motion for directed verdict.
(c) Judgment denying recovery on Count IV seeking damages for professional negligence and legal malpractice af[1009]*1009ter a jury awarded Goodwin a partial recovery and the trial court granted defendant’s motion for directed verdict.
(d) Judgment denying recovery on Count Y for breach of fiduciary duty as an escrow agent; procedurally, the denial followed the same route as in (c), above.
(e) Judgment denying recovery on Count VII for conversion after the trial court granted a motion for summary judgment.

We affirm all judgments except the latter two. We vacate a portion of the judgment denying recovery on Count V and vacate the judgment on Count VII of Goodwin’s third amended complaint, and remand for further proceedings.

Goodwin’s 138-paragraph complaint portrays a purchaser whose opportunity to make a large profit upon resale of 323 acres of Lake County land, part of which was planted in orange trees, was frustrated by the disastrous freeze of January 1982. In 1981, Goodwin, an experienced and sophisticated real estate investor from Maine, attended a Florida Real Estate Exchange meeting where he learned about the land. It had sold in 1979 for $600,000 and now was available for about $300,000. The bargain was not without complexities, however, and Goodwin learned that he would have to act within a few days to secure an assignment of a purchase contract that would soon expire. He learned, inter alia, that the previous owner, Michael S. Alexa-tos, held a purchase money mortgage on the land, that the mortgagor was in default, and that a superior mortgage was also in default. Goodwin decided to use Alexatos’ attorney, L. Danner Hiers, to represent him in the transaction even though he knew that Hiers would also act as Alexatos’ attorney. Goodwin retained Hiers because he was familiar with the title to the lands. Hiers explained to Goodwin that either a deed in lieu of foreclosure or a mortgage foreclosure was required to place title back in Alexatos and that, to eliminate clouds and to perfect title, other instruments and actions would be required, including lien satisfactions, a mortgage assumption, and interim debt servicing. Goodwin then executed a contract for purchase and sale with Alexatos on September 29, 1981, and closed the transaction on October 9, 1981, with a purchase price of $295,374.09.

It was understood at closing that the clouds on the title still required clearing, but no written understanding was prepared as to what was required by each of the parties, nor were written directions prepared regarding disbursement of $10,-927.11 that Goodwin had paid into Hiers’ trust account. It is undisputed that Hiers began taking steps to clear the title. On October 13, 1981, Hiers disbursed monies to Alexatos as seller, to his law firm for attorney’s fees, and to satisfy outstanding ad valorem tax certificates. Goodwin paid $28,125.91 directly to the first mortgagee to satisfy delinquent loan installments and paid $1,350 per month for seven months to Hiers’ trust account for Goodwin’s purchase money mortgage to Alexatos. These payments equaled the exact amount of payments owed in turn by Alexatos to a bank. The bank had lent funds to Alexatos using as security the mortgage that Hiers was endeavoring to foreclose or satisfy through a deed in lieu of foreclosure. Goodwin directed these monthly payments to Hiers rather than to Alexatos to ensure that the bank received the payments.

In January 1982, a freeze visited Florida, but the effect upon the orange trees was not known for several months; the effect was devastating in fact to the extent that the value of the lands was reduced by approximately $200,000. On May 10, 1982, Goodwin abruptly demanded of Hiers a return of the money he “put into [the lands],” citing as the reasons the alleged but disputed previous offer by Hiers that he, evidently personally, would refund Goodwin’s money at any time he became dissatisfied with the deal,1 that he intended to move the property rapidly after closing, and that, [1010]*1010although progress had been made in clearing the title, Goodwin still did not have clear title seven months after the closing. Hiers responded to the letter by denying that any promise of refund was made by him. Needless to say, he also withdrew as Goodwin’s attorney. It was learned later at trial that in late April 1982 the most important impediment to closing was overcome upon Hiers’ receipt of the deed in lieu of foreclosure. During the seven-month period about which Goodwin complained, no claims, defaults, or additional impediments to closing occurred that would have resulted in an insurmountable or costly conclusion to the task of clearing title.

Goodwin then filed his complaint which contained eight counts as amended. The complaint requested rescission and cancellation and alleged breach of contract against Alexatos. It requested an accounting and alleged negligence, malpractice, and breach of fiduciary duty as escrow agent against Hiers. It also alleged constructive fraud, conversion, and civil theft against both defendants. The jury found for Alexatos on the breach of contract claim. It awarded Goodwin $49,946 after finding him sixty percent comparatively negligent on the negligence and malpractice claims and awarded Goodwin $18,820 on the breach of fiduciary duty claim. The trial court directed verdicts for the defendants after receiving the jury verdicts and after reserving the right to do so during trial.

Our review of the record indicates that Goodwin’s damages were caused by his own abrupt, unilateral decision to call a halt to Hiers’ further efforts to eliminate the impediments to clear title. The only arguable and possibly material negligence on Hiers’ part may have been the seven months that passed without his perfecting title; but there never existed any agreement as to a deadline. Further, testimony at trial indicated that the foreclosure initiated by Hiers with full knowledge by the parties to the transaction was aggressively contested until the title holder’s decision to grant the deed in lieu of foreclosure. Even the delivery of that deed was delayed through no fault of Hiers because one of the signatories was outside the United States. Goodwin’s intentions to remarket the property may have been frustrated by the expiration of the seven months, but the testimony at trial did not indicate that any attempted resale had been lost or that the delay caused any expense that would not have been incurred had the title been cleared within a few months after the closing.

Goodwin says that he had $53,543.02 less at the end of the transaction than he did when he entered into it and has nothing to show for it. To recover that amount, it was his burden to prove that Hiers’ negligence was the proximate cause of that loss. The proximate cause was Goodwin’s decision to abandon the transaction, not any delay allegedly caused by Hiers. Even if Hiers had been slow in eliminating the clouds on the title, the delay must still be the proximate cause of Goodwin’s damages. Lawyers Professional Liability Ins. Co. v. McKenzie, 470 So.2d 752 (Fla. 3d DCA 1985); Graham v.

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

Related

UN2JC AIR 1, LLC v. R. D. DON WHITTINGTON
District Court of Appeal of Florida, 2021
TANER GOKALP and SAMTRAC CORP. v. MEHMET SERHAN UNSAL
District Court of Appeal of Florida, 2019
Palm Beach Florida Hotel v. Nantucket Enterprises, Inc.
211 So. 3d 42 (District Court of Appeal of Florida, 2016)
Roman v. Sage Title Group, LLC
146 A.3d 479 (Court of Special Appeals of Maryland, 2016)
IberiaBank v. Coconut 41, LLC
984 F. Supp. 2d 1283 (M.D. Alabama, 2013)
Wright v. Emory
41 So. 3d 290 (District Court of Appeal of Florida, 2010)
Joseph v. Chanin
940 So. 2d 483 (District Court of Appeal of Florida, 2006)
AMERISEAL OF NE FLA., INC. v. Leiffer
673 So. 2d 68 (District Court of Appeal of Florida, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
584 So. 2d 1007, 1991 Fla. App. LEXIS 862, 1991 WL 11697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goodwin-v-alexatos-fladistctapp-1991.