Kahn v. American Surety Co. of New York

162 So. 335, 120 Fla. 50, 1935 Fla. LEXIS 1339
CourtSupreme Court of Florida
DecidedJune 10, 1935
StatusPublished
Cited by11 cases

This text of 162 So. 335 (Kahn v. American Surety Co. of New York) 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
Kahn v. American Surety Co. of New York, 162 So. 335, 120 Fla. 50, 1935 Fla. LEXIS 1339 (Fla. 1935).

Opinion

Terrell, J.

In January, 1929, Charles Izenstark, Inc., as complainant, recovered a final decree against the defendant, Tropical Estates Corporation, in a suit to foreclose an equitable lien. In addition to the final decree foreclosing *52 the lien the court found and adjudicated Tropical Estates Corporation to be indebted to Charles Izenstark, Inc., in the sura of $56,795.06, and included a judgment for that sum in his final decree. From said final decree Tropical Estates Corporation entered an .appeal to this Court and posted its supersedeas bond conditioned to indemnify Charles Izenstark, Inc., for costs, damages, expenses, and attorneys’ fees in the event the cause was dismissed or affirmed by this Court.

After the final decree was entered but before the appeal was taken, Charles Izenstark, Inc., employed counsel and agreed to pay them a fee of $5,000.00 to represent it in said appeal before the Supreme Court. Subsequent to the execution, of the contract for attorney’s fees Charles Izenstark, Inc., assigned its final decree to Harry A. Kahn 'who ratified the agreement of Charles Izenstark, Inc., as to attorneys’ fees and agreed to assume same. A part of the consideration for the assignment of the final decree was to save Charles Izenstark, Inc., harmless from any costs and charges, including attorneys’ fees.

The final decree of the Circuit Court in said cause was in due course affirmed by the Supreme Court, and in February, 1933, Harry A. Kahn filed his declaration in this action against American Surety Company of New York, the surety on the supersedeas bond in the chancery suit. The declaration was in eleven counts, nine counts were common counts on which issue was joined but they were in effect abandoned at the trial as no evidence was offered in support of them. The first count of the declaration was based on an express contract for the payment of attorneys’ fees, and the second count was based on an implied contract for the payment of attorneys’ fees, resting in quantum meruit. -After much pleading which is not material to the issue raised here the *53 cause went to trial on the plea of non-damnificatus to the first and second.counts and the plea of the general issue to all other pleas. At the trial no material evidence was submitted except as to the count for attorney’s fees. The jury returned a verdict for the plaintiff in the sum of $5535.00' on which final judgment was entered. Motion for new trial was seasonably made by the defendant and granted, to which the instant writ of error was prosecuted.

The sole error assigned and with which we are concerned here is the propriety of the order granting the new trial. To answer the question raised we are required to determine whether or not under the facts presented Kahn was indemnified for attorneys’ fees by the supersedeas bond.

This Court indulges the presumption that when granted, motions for new trial are proper. The rule supporting such presumption is that there are so many matters occurring in the course and progress of a judicial trial that, in the opinion of the judge who tried the case, may effect the merits and justice of the cause to the substantial injury of one of the parties that of necessity a large discretion should be accorded to the trial court in granting a new trial, to the end that the administration of justice may be facilitated. The appellate court will not reverse an order granting a new trial, unless it clearly appears that a judicial discretion has been abused in its exercise, resulting in injustice, or that some settled principle- of law has been violated. Farrell v. Solary, 43 Fla. 124, 31 So. 283; Gulf Refining Co. v. Howard, 82 Fla. 27, 89 So. 349; Waters Realty Co. v. Miami Tripure Water Co., 100 Fla. 221, 129 So. 763; Ruston v. Green, 91 Fla. 434, 167 So. 368, 108 So. 846; Hainlin v. Budge, 56 Fla. 342, 47 So. 825; Louisville & N. R. Co. v. Wade, 49 Fla. 179, 38 So. 49. In the case at bar this rule and presumption supporting it is not applicable because the *54 trial judge wrote an opinion in which he gave the reasons for his judgment. If his reasons violated a settled principle of law his judgment must be reversed.

. The propriety of the order granting a new trial turns on the question of whether or not Kahn, the plaintiff in error who was plaintiff below, should be allowed to recover his attorneys’ fees in this cause on the basis of the supersedeas bond given by Tropical Estates Corporation in the equity suit to Charles Izenstark, Inc., Kahn’s assignor.

This Court is committed to the doctrine that the payment of reasonable attorneys’ fees' for the appellees may in proper cases be made the condition of a supepsedeas bond to indemnify the appellee for expenses and damages incurred by reason of the appeal should the order be affirmed or the appeal dismissed. Lawson v. County Board of Public Instruction, 114 Fla. 153, 154 So. 170. See also Wittich v. O’Neal, 22 Fla. 592; Fidelity and Deposit Co. of Maryland v. Aultman, 58 Fla. 228, 50 So. 991; Gonzales v. DeFuniak Havana Tobacco Co., 41 Fla. 471, 26 So. 1012.

The supersedeas bond in question was given by Tropical Estates Corporation in the chancery suit to indemnify Charles Izenstark, Inc., for costs, damages, expenses, and attorneys’ fees. Harry A. Kahn, Charles Izenstark’s assignee, brings this action to recover on the bond. If the obligation of the bond was an incident to the assignment of the final decree or if the obligation of the bond was otherwise vested in Kahn so that he could maintain an action in his own name for the attorneys’ fees he should be allowed to recover on it.

The defendant in error insists that Kahn had no right to sue and recover on the supersedeas bond, that if such right existed it belonged to the named obligee, Charles Izenstark, Inc., that the bond is one of indemnity and under the facts *55 alleged in the declaration, as supported by the evidence, Charles Izenstark, Inc., could suffer no damage by reason of the appeal and supersedeas. Defendant in error further insists that even if the court should hold that the assignment of the final decree carried with it as an incident the supersedeas bond, the right to claim attorneys’ fees was not an incident that passed with it.

This' contention of defendant is based on the interpretation by the trial court of the opinion of this Court in Daubmyre v. Hunter, 106 Fla. 858, 144 So. 408.

In Daubmyre v. Hunter we held that the question of damages and the amount thereof, if any, recoverable on a supersedeas bond, is dependent for its solution on the condition of the bond, interpreted in the light of the statute and order of court under and by virtue of which it was given.

We also hold in the Daubmyre case that “Both the order of court and the condition as set forth in the bond should be construed and read together, since the parties who were shown to have executed, filed, and had approved a supersedeas bond must be presumed to have given the kind of bond required by the statute and the order of the court, and are estopped to deny that such a bond was given, after having obtained and enjoyed the benefit of a supersedeas on the strength of apparently having given the approved bond that the law and the court required to be given to make the supersedeas' effective.

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Bluebook (online)
162 So. 335, 120 Fla. 50, 1935 Fla. LEXIS 1339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kahn-v-american-surety-co-of-new-york-fla-1935.