Pinnacle Port Community Association, Inc. v. Charles Orenstein

872 F.2d 1536, 1989 U.S. App. LEXIS 7148, 1989 WL 45963
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 23, 1989
Docket88-3018
StatusPublished
Cited by31 cases

This text of 872 F.2d 1536 (Pinnacle Port Community Association, Inc. v. Charles Orenstein) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinnacle Port Community Association, Inc. v. Charles Orenstein, 872 F.2d 1536, 1989 U.S. App. LEXIS 7148, 1989 WL 45963 (11th Cir. 1989).

Opinion

ANDERSON, Circuit Judge:

The Pinnacle Port Community Association, Inc. (“Pinnacle Port”) brought suit against Charles Orenstein, North American Mortgage Investors (“NAMI”), and South-mark Corporation (“Southmark”), on claims arising from the construction of a condominium project. The district court granted summary judgment in favor of NAMI and Southmark, and Pinnacle Port appeals. We reverse as to the oral contract, contract adoption and negligence issues, and affirm as to the remaining claims.

I. BACKGROUND

The plaintiff, Pinnacle Port, is an association of owners of units of the Pinnacle Port condominium complex, located in Bay County, Florida. The defendants are Charles Orenstein, the owner of the project during the relevant period; NAMI, the lender to the project; and Southmark Corporation, a successor of NAMI.

In 1974, Orenstein took over the second mortgage of the condominium project from the original developers in lieu of foreclosure of the project. Undertaking to complete the project, he negotiated with NAMI, the first mortgagee, to provide funds under the same terms as provided to the original developer, and NAMI agreed. As the units were sold, the resulting revenues were to be applied to repay the principal and interest on NAMI’s loan, with any additional revenue paid to Orenstein. 1

*1538 All was not smooth sailing for the Pinnacle Port project. In 1979, when construction was complete and most of the units had been sold, various deficiencies in the construction became apparent. In addition to assorted finishing touches that remained to be completed, the most serious structural difficulty was that the exterior stucco walls of several units were not watertight. After NAMI took steps to rectify the problems, Pinnacle Port, unsatisfied, sued Oren-stein and NAMI in Florida state court. The suit was settled pursuant to a stipulation dated October 4, 1979. The named parties to the stipulation were Charles Or-enstein, “d/b/a Pinnacle Port Developers,” and Pinnacle Port Community Association, Inc. The stipulation released both Oren-stein and NAMI from all claims which had been or could have been made against them based on any aspect of the development, in exchange for promises by Orenstein to perform under the stipulation. 2 The stipulation required Orenstein to make several enumerated repairs, replacements, and other corrections within 180 days. The stipulation also included a merger clause, specifying that “the Association and the Developer agree that there are no oral agreements between them and that all negotiations, discussions, and agreements have been merged herein,” as well as a separate integration clause.

Work proceeded under the stipulation. Although there is conflicting testimony as to the division of responsibilities for the repair work, NAMI seems to have taken an increased role. It indicated, at least until August 26, 1982, its intention to complete the work required by the stipulation and it paid for the work actually done. It actively supervised repairs, while Orenstein played at best a small role. The 180-day time limit for completion of the repairs was reached, but Pinnacle Port extended the time. Repairs continued, until in November, 1982, NAMI’s attorney presented Pinnacle Port with a report proclaiming the work completed.

Disputing this assertion, on September 24, 1984, Pinnacle Port filed suit against Charles Orenstein and Southmark in district court, seeking to enforce the terms of the stipulation. NAMI was joined as a party on December 4, 1985, and all defendants moved for summary judgment on October 27, 1986. The district court granted summary judgment for NAMI and Southmark, and, after certification pursuant to Fed.R.Civ.P. 54(b), Pinnacle Port appealed the judgment in favor of those defendants to this court.

On appeal, Pinnacle Port raises a number of issues. First, it contends that NAMI and Orenstein were joint venturers. Second, Pinnacle Port argues that the defendants were partners by estoppel. Third, Pinnacle Port claims that NAMI is es-topped from denying that it is bound under the stipulation, regardless of whether it is a joint venturer. Fourth, appellant claims that NAMI is obligated due to promissory estoppel. Fifth, Pinnacle Port next contends, NAMI is bound by an independent obligation arising out of an oral contract. Sixth, Pinnacle Port argues that NAMI adopted the stipulation. Finally, Pinnacle Port claims that NAMI is liable for negligently performing the repairs it did undertake.

The scope of this court’s inquiry is determined by the summary judgment posture of this case. Summary judgment is inappropriate where, viewing the evidence in the light most favorable to the nonmoving party, there is any genuine issue of material fact. Sweat v. Miller Brewing Co., 708 F.2d 655, 656 (11th Cir.1983). However, summary judgment must be entered against a party “who fails to make a showing sufficient to establish the existence of *1539 an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322-24, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). With these considerations to chart our course, we proceed to the analysis of the claims.

II. JOINT VENTURE

Pinnacle Port argues that NAMI is a joint venturer of Orenstein. If Pinnacle Port were to create a genuine issue in this regard and, on remand, were to prevail in showing the existence of a joint venture (or, as discussed in section III, partnership by estoppel), NAMI would be bound under the undisputed terms of the stipulation through its partnership with Orenstein. While the release in the stipulation would bar any claims against NAMI arising before the stipulation was signed, claims arising out of the stipulation — i.e., claims derivative of Orenstein’s obligations — would not be barred.

In a joint venture, a form of partnership, one joint venturer can bind the others in matters within the scope of the joint enterprise. See Fla.Stat.Ann. § 620.60 (West 1977). 3 A joint venture is established contractually. The contractual relationship must consist of the following elements: (1) a common purpose; (2) a joint proprietary interest in the subject matter; (3) the right to share profits and duty to share losses; and (4) the right of joint control. Kislak v. Kreedian, 95 So.2d 510, 515 (Fla.1957). 4

That the relationship between NAMI and Orenstein satisfies the first and second elements is not in dispute. It is evident that NAMI and Orenstein had a common purpose and a joint proprietary interest: they wished to complete and sell at a profit the Pinnacle Port condominiums, of which Orenstein was the owner and NAMI the mortgagee. With respect to the third element, i.e., the right to share profits and duty to share losses, the financial arrangement between the two is less clear.

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Cite This Page — Counsel Stack

Bluebook (online)
872 F.2d 1536, 1989 U.S. App. LEXIS 7148, 1989 WL 45963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinnacle-port-community-association-inc-v-charles-orenstein-ca11-1989.