North Dade Imported Motors, Inc. v. Brundage Motors, Inc.

221 So. 2d 170, 1969 Fla. App. LEXIS 5904
CourtDistrict Court of Appeal of Florida
DecidedMarch 18, 1969
DocketJ-475
StatusPublished
Cited by19 cases

This text of 221 So. 2d 170 (North Dade Imported Motors, Inc. v. Brundage Motors, Inc.) 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
North Dade Imported Motors, Inc. v. Brundage Motors, Inc., 221 So. 2d 170, 1969 Fla. App. LEXIS 5904 (Fla. Ct. App. 1969).

Opinion

221 So.2d 170 (1969)

NORTH DADE IMPORTED MOTORS, INC., Appellant,
v.
BRUNDAGE MOTORS, INC., Appellee.

No. J-475.

District Court of Appeal of Florida. First District.

March 18, 1969.
Rehearing Denied April 30, 1969.

*171 Boyd, Jenerette & Leemis, Jacksonville, for appellant.

Kent, Durden & Kent, Jacksonville, for appellee.

RAWLS, Judge.

We are again confronted with reviewing the discretion of a trial judge in granting a new trial. Appellee-Plaintiff Brundage Motors, Inc. instituted this action against Appellant-Defendant North Dade Imported Motors, Inc. for the recovery of $14,109.92, which sum North Dade admitted it owed. Concurrent with admitting its indebtedness to Brundage, North Dade counterclaimed for compensatory and exemplary damages in the sum of $500,000.00. This action was tried upon the counterclaim resulting in a jury verdict of $214,109.92 in favor of North Dade. After deducting the $14,109.92 due to Brundage, North Dade found itself the recipient of a $200,000.00 net verdict, which was set aside by the trial judge. North Dade now appeals the trial judge's order and contends he abused his discretion in setting aside the verdict and granting a new trial.

North Dade's nine-page counterclaim was phrased in three counts: Count 1 alleged breach of an express agreement by Brundage with North Dade by (a) failing and refusing to deliver Volkswagens in accordance with an allocation system; (b) discriminating against North Dade in withdrawing its name from cooperative advertising while making such available to its competitors; (c) failing to provide sales and/or management training to its personnel while making same available for other Volkswagen dealers in the area; (d) failing and refusing to deliver parts and special tools to it; and (e) withholding delivery of approximately sixty vehicles it had validly ordered until after its business was sold. Count 2 alleged a tortuous unlawful interference with the business relations by maliciously: (b) revealing confidential information about its business to prospective purchasers: (d) destroying the bargaining power of the defendant in connection with the sale of its business, but instead promoting the sale to others of plaintiff's choosing at financial loss to it. Claims under (a), (c) and (e) were removed from consideration of the *172 jury. Count 3 alleged breach of oral contract in that the plaintiff induced the defendant to purchase land at a cost of $61,000.00 and to have erected thereon a building worth $200,000.00 upon representations, relied upon by defendant, that if it did so, the plaintiff would permit the defendant to retain its dealership for a period of ten years in order to allow it to recover its investment and that the plaintiff breached that agreement to the damage of defendant. Exemplary as well as compensatory damages were claimed for Counts 2 and 3.

Material portions of the contested order granting a new trial are as follows:

"* * * it is the opinion of the Court that the jury did not follow the evidence or the law and that a new trial should be granted on defendant's counterclaim. As examples, the Court will point out that 86 exhibits totaling far more than 100 pages were received in evidence, the great majority of the exhibits being neither explained nor read to the jury by witnesses or attorneys; the jury also heard two full days of testimony: After being instructed on the law, the jury was `out' twenty minutes and returned a verdict in favor of counterclaimant in the sum of $214,109.92. Further, the testimony shows that plaintiff's distributorship was terminated April 1, 1966 (approximately nine months after it terminated defendant's dealership) and, therefore, could not have extended defendant's dealership contract into the year 1972 as alleged and claimed by defendant. * * *
"ADJUDGED that plaintiff's Motion and amended Motion for a Judgment non obstante veredicto shall be and the same are hereby denied. * * *
"ADJUDGED that the plaintiff's Motion for remititur shall be and the same is hereby denied. * * *
"ADJUDGED that plaintiff's Motion for a new trial of defendant's counterclaim shall be and the same is hereby granted on grounds (1) and (2) of said Motion for New Trial * * * and the Judgment entered thereon be and the same are hereby severally vacated and set aside and a new trial is hereby granted on defendant's counterclaim."

The grounds stated therein were:

(1) The verdict is contrary to the law and the evidence.
(2) The verdict is contrary to the manifest weight of the evidence.

Due to the grounds recited by the trial judge, it is necessary to delve into the facts and exhibits contained in this extensive record.

The facts are: North Dade Imported Motors, Inc., the stock of which was owned or controlled by William H. Chatlos, became an authorized Volkswagen dealer in the Miami area in 1956. Brundage Motors, Inc. was distributor for Volkswagen products in Florida and other areas. Prior to granting Chatlos (North Dade) a franchise for the year 1960, Brundage required that he construct new facilities. Chatlos made arrangements to purchase raw ground for the new facilities; however, by the spring of 1961, he decided that since North Dade would be unable to meet Brundage's "future requirements, as far as capital is concerned * * *", he should sell the dealership. Brundage, in a letter signed by Eric R. Sundstrom, its executive vice president, advised Chatlos that "In view of the present condition of your dealership, we must stress to you the importance of continuing every effort in the sale of the products you already have in inventory so that the dealership can maintain its obligations and show the profit that a prospective buyer would certainly be interested in." It was against this background that the present principals became involved in North Dade.

In late April or early May, 1961, H. Perry Gainey, on behalf of himself, Carl Schweers and L.E. Willis, Jr., telephoned Brundage Motors to discuss the possibility *173 of establishing a Volkswagen dealership in St. Petersburg. He was put in touch with Bob McDowell of Brundage who informed him that a dealership was for sale in the Miami area. Around the middle of May, Gainey and Willis journeyed to Jacksonville where they met with McDowell and other Brundage officials. Subsequently, McDowell, Brighton (a Brundage official), Gainey, and Willis flew from Jacksonville to Miami in Brundage's airplane to meet Chatlos and examine North Dade's operation. After several meetings with Brundage officials and Chatlos, an agreement was reached for Gainey, Willis and Schweers to purchase all of North Dade's stock. Brundage's chief concern was that adequate capital be provided by the Gainey group to assure construction of a new physical plant and working capital in the sum of $75,000.00. During these meetings, Brundage advised Gainey and Willis that since it only had a one-year contract as a distributor, it could only give to them a year's contract. Gainey and Willis "thought it was an awful undertaking to build new facilities for the amount of money they were talking about spending, and in talking to banks, they wouldn't lend no money under the circumstances to build facilities." Brundage assured Gainey and Willis as long as they performed and attended to their customers and sales, they would have the dealership as long as Brundage was a distributor. On June 2, 1961, the Gainey group purchased North Dade.

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Cite This Page — Counsel Stack

Bluebook (online)
221 So. 2d 170, 1969 Fla. App. LEXIS 5904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-dade-imported-motors-inc-v-brundage-motors-inc-fladistctapp-1969.