Paulucci v. General Dynamics Corp.

842 So. 2d 797, 28 Fla. L. Weekly Supp. 235, 2003 Fla. LEXIS 388, 2003 WL 1339067
CourtSupreme Court of Florida
DecidedMarch 20, 2003
DocketSC01-2346
StatusPublished
Cited by73 cases

This text of 842 So. 2d 797 (Paulucci v. General Dynamics Corp.) 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
Paulucci v. General Dynamics Corp., 842 So. 2d 797, 28 Fla. L. Weekly Supp. 235, 2003 Fla. LEXIS 388, 2003 WL 1339067 (Fla. 2003).

Opinion

842 So.2d 797 (2003)

Jeno F. PAULUCCI, et al., Petitioners,
v.
GENERAL DYNAMICS CORPORATION, et al., Respondents.

No. SC01-2346.

Supreme Court of Florida.

March 20, 2003.

*798 David H. Simmons, Dale T. Gobel and Daniel J. O'Malley of Drage, deBeaubien, Knight, Simmons, Mantzaris & Neal, Orlando, FL, for Petitioners.

Steven L. Brannock, Rory C. Ryan and Stacy D. Blank of Holland & Knight LLP, Tampa, FL, for Respondents.

PARIENTE, J.

We have for review the decision of the Fifth District Court of Appeal in General Dynamics Corp. v. Paulucci, 797 So.2d 18 (Fla. 5th DCA 2001), which certified a question of great public importance and also certified conflict with the decision of the Third District Court of Appeal in Buckley Towers Condominium, Inc. v. Buchwald, 321 So.2d 628 (Fla. 3d DCA 1975).[1] We have jurisdiction, see art. V, *799 § 3(b)(4), Fla. Const., and rephrase the certified question as follows:

DOES A COURT HAVE JURISDICTION TO ENFORCE A SETTLEMENT AGREEMENT WHERE THE COURT HAS EITHER INCORPORATED THE SETTLEMENT AGREEMENT INTO A FINAL JUDGMENT OR APPROVED THE SETTLEMENT AGREEMENT BY ORDER AND RETAINED JURISDICTION TO ENFORCE ITS TERMS?[2]

For the reasons that follow, we answer the rephrased question in the affirmative and hold that regardless of whether the remedy sought is outside the scope of the original pleadings, a court has jurisdiction to enforce a settlement agreement where the court has either incorporated the agreement into a final judgment or approved the agreement by order and retained jurisdiction to enforce it terms.

FACTS

In 1996, the Pauluccis filed a complaint alleging that General Dynamics Corporation or other named corporations or limited partnerships associated with it (hereinafter "GDC") had contaminated the Pauluccis' warehouse property when GDC leased it from the Pauluccis. On July 24, 1998, the parties entered into a settlement agreement that required GDC pay the Pauluccis a total of $3,000,000. The settlement agreement also required GDC to

promptly initiate contact with the DEP [Department of Environmental Protection] concerning the Environmental Condition of the property to maintain the NFA [No Further Action Letter] or to obtain reissuance of the NFA, and if required by the DEP for such purposes, [to] investigate and implement clean up, remediation, and monitoring activities.

The parties also agreed that

[i]f after 15 months from the date of this Settlement Agreement, there is no valid No Further Action (NFA) letter in place with regard to the property in question, then Plaintiffs shall be entitled to and Defendants shall pay to Plaintiffs, monthly payments (paid on the first of each month) equal to the difference between the fair market value of the lease rate of the property and any current monthly rental for each month following the 15 month period until a valid NFA letter is issued.

The Pauluccis and GDC requested that the trial court approve the settlement agreement and incorporate it into the final judgment. The trial court approved the agreement and incorporated it into a final judgment issued July 29, 1998, in which the court retained "jurisdiction of this matter in order to enforce, construe, interpret, and otherwise insure compliance by the Parties with the Settlement Agreement."

Subsequent to the final judgment, various motions were filed in the trial court by the Pauluccis alleging noncompliance by GDC with the terms of the settlement agreement. The trial court entered an order that stated in part:

*800 The Settlement Agreement in the present case contemplated further enforcement litigation. It settled all matters between the parties except for obligations set forth in the Settlement Agreement. It provided for the trial court to approve the Settlement Agreement, incorporate it into the Final Judgment, and for the court to retain jurisdiction to enforce the Settlement Agreement. The Settlement Agreement even provided for limited confidentiality in case the Agreement needed to be enforced. Further, the parties specified the calculation of damages should the Defendants fail to timely satisfy their obligations under the Settlement Agreement.... Finally, the Settlement Agreement gave the Defendants full, complete and uninterrupted control over the Environmental Condition of the property for 15 months from the date of the Settlement Agreement, July 24, 1998. However, the Settlement Agreement did not provide for a jury trial or for punitive damages. The court is not free to vary these terms.
While the Plaintiffs may file a motion in this court to enforce the Settlement Agreement, they may not file an action for its breach or for a statutory violation of Chapter 376, Florida Statutes; that must be done in a separate action. Further, an action to enforce the Settlement Agreement did not become ripe until 15 months after the effective date of the Settlement Agreement which was October 24, 1999.

(Citations omitted.)

On appeal, the Fifth District observed that the trial court's solution to the jurisdictional issue was "reasonable." However, the Fifth District concluded that its prior decision in Wallace v. Townsell, 471 So.2d 662 (Fla. 5th DCA 1985), required that any action seeking to enforce a settlement agreement "be brought in a separate action, by complaint and not motion, giving the defendant the opportunity to plead ... defenses and request a jury trial if appropriate." Paulucci, 797 So.2d at 21. Thus, the Fifth District reversed the trial court's order, holding that the trial court had no "subject matter jurisdiction" to enforce the terms of the settlement agreement because the remedy sought was outside the scope of the original pollution action. See id. at 20-21. Nevertheless, the Fifth District expressed reservations about the wisdom of its decision:

A complaint is, of course, essential to initiate an action. But its purpose is to invoke the subject matter jurisdiction of the court and to give notice of the claim. Has not that purpose been met when the parties stipulate in their settlement agreement resolving an action for which the court already has jurisdiction that based on a certain event occurring, or based on failure of a certain event to timely occur, stipulated consequences will flow and also agree that the court approving the settlement is authorized to determine whether such event did or did not occur and whether such consequences should or should not be suffered? Can it not be said that the settlement agreement approved by the court and adopted as part of the final judgment together with the agreement of the parties that the court can enforce that agreement, in effect, "amended" the initial pleadings and waived any claim for a jury trial?

Id. at 21. Accordingly, the Fifth District certified a question of great public importance to this Court and certified conflict with the Third District's decision in Buckley Towers.

ANALYSIS

Seventy years ago this Court recognized that "[w]hen a judgment or decree *801 has once been rendered, the court loses jurisdiction over the subject-matter of the suit, other than to see that proper entry of judgment or decree is made and that the rights determined and fixed by it are properly enforced." Davidson v. Stringer, 109 Fla. 238, 147 So. 228, 229 (1933) (emphasis supplied).

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Cite This Page — Counsel Stack

Bluebook (online)
842 So. 2d 797, 28 Fla. L. Weekly Supp. 235, 2003 Fla. LEXIS 388, 2003 WL 1339067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paulucci-v-general-dynamics-corp-fla-2003.