Jefferson Realty of Fort Lauderdale, Inc. v. United States Rubber Co.

222 So. 2d 738
CourtSupreme Court of Florida
DecidedApril 16, 1969
Docket37305
StatusPublished
Cited by13 cases

This text of 222 So. 2d 738 (Jefferson Realty of Fort Lauderdale, Inc. v. United States Rubber Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson Realty of Fort Lauderdale, Inc. v. United States Rubber Co., 222 So. 2d 738 (Fla. 1969).

Opinion

222 So.2d 738 (1969)

JEFFERSON REALTY OF FORT LAUDERDALE, INC., a Florida Corporation; Jefferson Realty of South Dade, Inc., a Florida Corporation; Jefferson Funland, Inc., a Florida Corporation; and Jefferson Stores, Inc., a Delaware Corporation Authorized to Do Business in the State of Florida, Petitioners,
v.
UNITED STATES RUBBER COMPANY, a New Jersey Corporation, Respondent.

No. 37305.

Supreme Court of Florida.

April 16, 1969.
Rehearing Denied June 10, 1969.

*739 B.C. Fuller of Fuller & Feingold, Miami Beach, and Frates, Fay, Floyd & Pearson, Miami, for petitioners.

Richard S. Banick, Miami, and Marvin E. Barkin of Fowler, White, Collins, Gillen, Humkey & Trenam, Tampa, for respondent.

MASON, Circuit Judge.

On July 8, 1968, this cause having theretofore been submitted to the Court on petition for writ of certiorari to be directed to the District Court of Appeal, Third District of Florida, we determined that this Court was without jurisdiction to review the decision of the District Court of Appeal, and we denied the Petition. Subsequently, we granted rehearing and issued the writ of certiorari. Rehearing has been had and we are now of the opinion that we have conflict jurisdiction to review the decision of the District Court of Appeal which reversed the judgment of the trial court in favor of the petitioners, who were plaintiffs below. The decision of the District Court of Appeal is reported as United States Rubber Company v. Jefferson Realty of Fort Lauderdale, Inc. et al., 208 So.2d 110.

The record reflects that Jefferson Realty of South Dade, Inc., Jefferson Realty of Fort Lauderdale, Inc., and Jefferson Funland, Inc., designated hereinafter as original plaintiffs, and Jefferson Stores, Inc., (which was permitted to be joined as a party-plaintiff during the trial) filed their complaint seeking damages for breach of contract alleging that United States Rubber Company negotiated with the original plaintiffs to become a sub-lessee of property upon which United States Rubber Company was to supply an automobile service center. Leases were entered into by United States Rubber Company severally with each of the three of the original plaintiffs. Each lease provided that the lessor (one of the original plaintiffs) would construct a designated type of building upon premises located near the Jefferson Stores. United States Rubber Company was to furnish construction costs under each lease and would receive reimbursement therefor, with interest, as a credit reduction from agreed rent. Executed lease agreements were delivered to an escrow agent. The plaintiff, Jefferson Stores, Inc., guaranteed performance by each of the original plaintiffs lessors of the terms and agreements contained in its respective lease with United States Rubber Company. It is recited in the Guarantee Agreement entered into by Jefferson Stores, *740 Inc., and United States Rubber Company that each of the lessors in said leases is a wholly owned subsidiary of Jefferson Stores, Inc., and that for such reason there existed sufficient and adequate consideration for the guarantee by Jefferson Stores, Inc., of performance by each of its said subsidiaries of the obligations undertaken by it in its lease agreement with United States Rubber Company.

The complaint alleged that the lease conditions were met and that the United States Rubber Company prevented the construction of the improvements contemplated by the leases and prevented the actual commencement of the terms of the three lease agreements, and thereby breached the contracts between the parties. Cross motions for summary judgments were filed and the trial court granted such a judgment upon the issue of liability in favor of the original plaintiffs, and the cause proceeded to trial on the sole issue of damages. Just prior to resting their case, and on the third day of trial, the original plaintiffs (the actual lessors who executed the lease moved the Court for permission to amend the complaint by adding Jefferson Stores, Inc., as a party plaintiff. The defendant, United States Rubber Company, objected to such amendment and joinder, and requested continuance of the cause if such were permitted. The trial court took the motion under advisement and the trial proceeded with the completion of the plaintiffs' evidence and the reception of defendant's. At the conclusion of all of the evidence counsel for the plaintiffs asked the Court for a ruling upon their previous motion for amendment and joinder, and over objection of defendant's counsel the motion was granted, and the trial proceeded to conclusion with all four parties plaintiffs. Jury verdicts were returned awarding no damages to the three original plaintiffs and $400,000 damages to Jefferson Stores, Inc. Final judgment was entered in favor of Jefferson Stores, Inc., in said amount of $400,000 and costs only for the three original plaintiffs.

In ruling on the motion of the plaintiffs to amend and to add Jefferson Stores, Inc., as a party plaintiff the trial court announced that the cause had proceeded to that point upon the assumption by all parties that Jefferson Stores, Inc., was the real party in interest, and that in his judgment no prejudice would result to the defendant by the granting of said motion. Likewise, in his order denying the defendant's motion for judgments notwithstanding the verdicts the trial judge reiterated his opinion and conclusion that the three original plaintiffs were mere instrumentalities of the parent corporation and that the record reflected that throughout the entire transaction all of the parties recognized that Jefferson Stores, Inc., was the real party in interest; that the original plaintiffs were "nothing more than mere nominal parties to the transactions." He further stated "There is not the slightest suggestion throughout this cause that the defendant was deceived or suffered any injury by reason of the fact that Jefferson Stores, Inc., the real party complainant was doing business through three wholly owned subsidiary corporations."

The District Court of Appeal reversed the trial court, holding that it was error for the trial court to enter summary judgment without previous notice under the rules stating "The court necessarily granted Jefferson Stores a partial summary judgment after all of the evidence was received even though summary judgments are properly pre-trial in character and it is not proper to grant summary judgments in favor of either party at the conclusion of the evidence during trial." We hold that this decision is in direct conflict with previous decisions of this Court, and particularly Jones v. Allen, 1938, 134 Fla. 751, 184 So. 651. In Jones v. Allen we held, "It is the policy of the law in this state to permit additional pleas any time before verdict and to allow amendments in pleading any time if they will facilitate a presentation of the merits. The time and conditions under which they will be allowed is vested in *741 the discretion of the trial court." See also Kasanof v. Embry-Riddle Co., 157 Fla. 677, 26 So.2d 889, at page 893, wherein the appellate court affirmed the judgment of the lower court, but modified it to permit the filing in the trial court of an amended declaration by the appellant. To like effect is Robert L. Weed, Architect, Inc. v. Horning, 1947, 159 Fla. 847, 33 So.2d 648, and Miracle House Corporation v. Haige, Fla. 1957, 96 So.2d 417.

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Bluebook (online)
222 So. 2d 738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-realty-of-fort-lauderdale-inc-v-united-states-rubber-co-fla-1969.