Gulf Eagle, LLC v. Park East Development, Ltd.

196 So. 3d 476, 2016 Fla. App. LEXIS 9963, 2016 WL 3541028
CourtDistrict Court of Appeal of Florida
DecidedJune 29, 2016
Docket2D14-5571
StatusPublished
Cited by5 cases

This text of 196 So. 3d 476 (Gulf Eagle, LLC v. Park East Development, Ltd.) 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
Gulf Eagle, LLC v. Park East Development, Ltd., 196 So. 3d 476, 2016 Fla. App. LEXIS 9963, 2016 WL 3541028 (Fla. Ct. App. 2016).

Opinion

CASANUEVA, Judge.

Gulf Eagle, LLC, appeals an order vacating a deficiency judgment which had been entered against the Appellees, Park East Development, LTD, Todd E. Gates, James G, O’Gara, and Marquette Development Company, after a bench trial. The convoluted path, that the deficiency judgment took in the trial court has resulted in legal chaos; we are asked to make order from this chaos. We conclude that an erroneous ruling made without notice or an opportunity .to be heard requires us to reverse this case.

I. Facts and Procedural History

In 2007, Park East obtained loans totaling $1,570,000 from Liberty Bank. In addition to Park East’s promise to pay, Liberty Bank obtained guarantees ensuring repayment of the loan from Mr. Gates, Mr. O’Gara, and Marquette Development. After Park East defaulted on its loan payments, Liberty Bank sued all of the. Ap-pellees. The trial court entered a summary judgment of foreclosure in the amount of $1,539,863.61 against Park East as to. count one of the complaint which was related to Park East’s mortgage and *478 promissory note. The judgment did not address the remaining counts of the complaint related to- the guarantees allegedly made by Mr. Gates, Mr. O’Gara, and Marquette Development. Following the foreclosure judgment, Gulf Eagle was substituted as the plaintiff. The real property securing the promissory note was sold at a judicial sale, and a deficiency judgment was thereafter sought against the Appel-lees in the amount of $606,863.61.

• The matter was set for trial on May 1, 2014, and after Gulf Eagle had rested its case, the Appellees moved for a directed verdict based on the failure of Gulf Eagle to introduce as evidence the written guarantees on which liability was predicated and the failure to establish the authenticity of each guarantee. Gulf Eagle argued that the summary judgment of foreclosure was against all of the Appellees, that the personal guarantees “were part of' the original summary judgment of foreclosure,” and that “[n]o additional evidence is needed.” As a result, Gulf Eagle argued, liability for the guarantees had already been determined and the only issue to be tried was damages. The Appellees correctly noted that the summary judgment of foreclosure did not address the counts of the complaint related to the personal guarantees of Mr. Gates, Mr. O’Gara, ánd Marquette Development.

The trial court agreed with Gulf Eagle, denied the motion for a directed verdict and, on the same date as the trial, May 1, 2014, entered a deficiency judgmént against all of the Appellees. Thereafter, on October 6, 2014, pursuant to Gulf Eagle’s motion to correct scrivener’s error, the trial court entered a “Final Deficiency Judgment” and an “Order on Amended Motion to Correct Error[;] Order Vacating Deficiency Judgment Entered May 1, 2014.” This order made two important findings: first, that Gulf Eagle proved its debt only against Park East; and second, because the counts against the guarantors had never been noticed for trial; liability against the guarantors had not yet been determined. Therefore, the trial court vacated the deficiency judgment previously entered and ruled that the deficiency judgment would apply to only Park East.

On October 9, 2014, the Appellees filed an “Emergency Motion for Rehearing,” arguing that the counts against them had been noticed for trial and were tried on May 1. Thereafter, on October 13, 2014, without prior notice to the parties or an opportunity for them to be heard, the trial court issued an “Amended Final Deficiency Judgment” and an “Amended Order on Amended Motion to Correct Error[;] Order Vacating Deficiency Judgment Entered May 1, 2014,” changing, in substance and impact, the October 6 order. In these new rulings, the trial court concluded that the guarantees necessary to establish the liability of Mr. Gates, Mr. O’Gara, and Marquette Development “were never offered into evidence” and, therefore, these three Appellees could not “be held liable for the debt.” Judgment was entered in their favor, thereby rescinding the prior order’s determination that further proceedings were necessary.

II. Discussion

It is clear from this record, as the trial court ultimately found, that the guarantees had never been admitted into evidence and that there had never been a ruling that the Appellees were liable for the guarantees. The representation by counsel for Gulf Eagle during the trial that the guarantees “were part of the original summary judgment of foreclosure” was incorrect. However, there is nothing in this record to suggest that counsel’s representation was made iii anything but good faith. During trial, both the trial court and counsel for Gulf Eagle had the mistaken belief that *479 summary judgment had been entered against the Appellees as to their liability for the guarantees, even though the Appel-lees informed the trial court and counsel that this was not correct.

As a result of this incorrect finding, the trial court improperly denied the Appel-lees’ motion for directed verdict. If the trial court had correctly granted the motion for directed verdict, Gulf Eagle could have moved for rehearing to present additional evidence. Florida Rule of Civil Procedure 1.530(a) provides as follows:

Jury and Non-Jury Actions. A new trial may be granted to all or any of the parties and on all or a part of the issues. On a motion for a rehearing of matters heard without a jury, including summary judgments, the court may. open .the judgment if one has been entered, take additional testimony, and enter a new judgment.

This court’s jurisprudence is clear that “[a] party cannot be penalized for good faith reliance on a trial court’s ruling.” John Hancock Mut. Life Ins. Co. v. Zalay, 522 So.2d 944, 946 (Fla. 2d DCA 1988) (citing Fla. Air Conditioners, Inc. v. Colonial Supply Co., 390 So.2d 174 (1980)). In those instances where later events establish the existence of an erroneous ruling, this court has required that “litigants must be granted an opportunity to present their case under the corrected ruling.” 522 So.2d at 946. A remedy in such circumstances is to allow‘the aggrieved party to present additional evidence, and the failure to do so may constitute an abuse of discretion. Id. We continued to follow this rationale in Moody v. Dorsett, 149 So.3d 1182, 1184 (Fla. 2d DCA 2014), where this court, noted that it affords the party “no more relief than that” originally available.

Generally, to reopen a case, a party must establish two evidentiary predicates. The fust predicate is that the presentation of evidence will not unfairly prejudice the opposing party and, second, that reopening will serve the best interests of justice. Robinson v. Weiland, 936 So.2d 777, 781 (Fla. 5th DCA 2006); Hernandez v. Cacciamani Dev. Co., 698 So.2d 927, 928-29 (Fla. 3d DCA 1997). Both factors are met here.

This case is factually similar to Hernandez. There, the appellant sued to enforce a promissory note and a personal guarantee but failed to move the original promissory note and assignment into evidence at trial. 698 So.2d at 928.

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Bluebook (online)
196 So. 3d 476, 2016 Fla. App. LEXIS 9963, 2016 WL 3541028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-eagle-llc-v-park-east-development-ltd-fladistctapp-2016.