Realty Growth Investors v. Gruman

47 Fla. Supp. 203

This text of 47 Fla. Supp. 203 (Realty Growth Investors v. Gruman) is published on Counsel Stack Legal Research, covering Circuit Court of the 13th Judicial Circuit of Florida, Hillsborough County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Realty Growth Investors v. Gruman, 47 Fla. Supp. 203 (Fla. Super. Ct. 1978).

Opinion

JOHN G. HODGES, Circuit Judge.

Final judgment entered on summary judgment: Plaintiff filed its motion for summary judgment, seeking judgment on the basis of a judgment entered against defendants in Maryland by the superior court for Baltimore City. There is no genuine issue as to the following facts —

1. Gulf Standard Corp., a Florida corporation, of which defendant William Victor Gruman is president, borrowed from plaintiff the sum of $1,849,000. Mr. Gruman signed the note as the corporation’s president on September 12, 1973.

2. Concurrently with execution of the aforesaid note, defendants executed their unconditional guaranty of the corporation’s debt as evidenced by the note.

3. Defendant Eva G. Gruman executed the guaranty in Hills-borough County, Florida and the same was delivered to plaintiff in Maryland.

4. Defendant William Victor Gruman executed the guaranty in Maryland.

5. Gulf Standard Corp. defaulted in its obligation on the note and plaintiff called the guaranty which defendants have not honored.

6. Plaintiff filed suit against defendants in the superior court for Baltimore City: defendants were personally served with process in Florida by one Rose Marie Brown, a person over the age of 18 years; service was effected on January 17, 1977; defendants declined to enter an appearance in the Maryland superior court and final judgment was entered against them in the amount of $489,969,21, plus $50 costs. Defendants did not appeal that final judgment on any ground. Specifically, defendants did not pursue in Maryland the sole defense which (as counsel has verbally stipulated with this court) they pursue here, i.e., the Maryland court lacked jurisdiction over their persons. Defendants claim that the court file herein is “silent as to the authority of the process server to subject [their] persons ... to the jurisdiction of the Maryland court.” (Memorandum, p 2).

7. The affidavits of one Marie Brown, process server, demonstrate that she is personally knowledgeable as to the persons of the defendants and that she served them with the Maryland process.

[205]*205In oral argument, and by written memorandum, defendants’ counsel asserts on the one hand that their affirmative defense is that the Maryland court lacked jurisdiction of their persons, but on the other that plaintiff has failed to allege and prove Maryland law reflecting statutory basis for the service of process which was made, citing Fla. Stat. §92.031(4). The court notes parenthetically that defendants do not contend that they were without notice of the Maryland action against them. Were this a trial on the merits, defendants would have the burden of proving their affirmative defense. Hough v. Menses, 95 So. 2d 410 (Fla. 1957); Futterman v. Gerber, 109 So. 2d 575 (Fla. 3d DCA 1959). Defendants have not offered any evidence or law warranting an inference that process was not served pursuant to Maryland law.

Plaintiff was required to do no more than to “aver the judgment . . . without setting forth matter showing jurisdiction to render it.” Rule 1.120(3), Fla. R. Civ. P. Lack of jurisdiction in a foreign court is a defensive matter which should be set out in the answer. Pacific Mills v. Hillman Garment, 87 So. 2d 599, 601 (Fla. 1956); Futterman v. Gerber, above. It is readily apparent that plaintiff was not required to notify defendants of any specific Maryland statutes (in the pleadings or otherwise, Fla. Stat. §92.031 (4)) but to the contrary, defendants were required to notify plaintiff of any such statutes.

On motion for summary judgment, the movant has the burden of proving the absence of genuine issues of material fact. Hall v. Talcott, 191 So. 2d 40, 43 (Fla. 1966). Here, plaintiff has conclusively established that defendants were served with process and defendants, by their pleadings, do not suggest that they were without notice of the Maryland suit. And, defendants have not affirmatively pleaded a Maryland statute which would assist this court in determining whether or not service was defective. Of course, if plaintiff, in its Maryland action, failed to comply with a service of process statute, such would warrant the conclusion that service was defective; it would not warrant the conclusion that the court lacked jurisdiction over the person of defendants, e.g., it is always possible that a defendant will voluntarily appear in the case. However, counsel have advised the court that defendants did not voluntrily appear, so the court merely suggests the distinction between jurisdictional and technical service of process concepts. Although defendants would have the burden of proving a defect in service were this cause to be tried, the plaintiff has the burden to come forward with sufficient proof on motion for summary judgment in order to establish that no genuine issue exists. Ratner v. Hensley, 303 So. 2d 41 (Fla. 3d DCA 1974).

[206]*206Although the court might be inclined to conclude that, by failing to plead plaintiff’s failure to comply with the Maryland service of process statute, there is no valid defense, the court will pass the temptation and review the Maryland law in order to determine whether or not there is a genuine issue of material fact as to jurisdiction. If there is no issue, this court must accord the Maryland judgment full faith and credit; in this regard the Maryland judgment is presumptively valid. See Futterman v. Gerber, 109 So. 2d 575, 576 (Fla. 3d DCA 1959).

The Maryland long arm statute applicable at the time of service of process by Ms. Brown in January, 1977 was §6-103, Courts and Judicial Proceedings, Annotated Code of Maryland, The Michie Company (1974). It provides, in pertinent part —

“(b) In general. — A court may exercise personal jurisdiction over a person, who directly or by agent:
(1) Transacts any business ... in the state;
* * *
(6) Contracts to insure or act as surety for, or on, any person . . ., risk, contract, obligation, or agreement located, executed or to be performed within the state at the time the contract is made . . .”

The court notes that the terms “surety” and “guarantor” are synonymous. A & T Motors, Inc. v. Roemelmeyer, 158 So. 2d 567, 569 (Fla. 3d DCA 1965). Also, see Nicolaysen v. Flato, 204 So 2d 547 (Fla. 4th DCA 1967) and Vilord v. Jenkins, 226 So. 2d 245 (Fla. 2d DCA 1969).

In National Truckers Service, Inc. v. Aero Systems,

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Bluebook (online)
47 Fla. Supp. 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/realty-growth-investors-v-gruman-flacirct13hil-1978.