14 September

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Proving a Novation

“A novation is an agreement between the parties concerned for the discharge of a valid existing obligation by the substitution of a new valid obligation.” Schroer v. Cumdale Partners, LLC, 2024 WL 3882430 (Fla. 4th DCA 2024) (internal citation omitted). “Four elements form a novation: (1) the existence of a previously valid contract; (2) the agreement of the parties to cancel and extinguish the first contract; (3) the agreement of the parties that the second contract takes the place of the first; and (4) the validity of the new contract.” Id. (internal citation omitted). When arguing novation, remember these four...

02 September

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You cannot Profit from Your Own Illegality

Posted by David Adelstein

in Trial Perspectives

Remember this adage: You cannot profit from your own illegality. In a recent case, parties entered into a promissory note for the repayment of gambling debts. Naturally, the promissory note was not repaid and a lawsuit on the note was initiated. However, the promissory note was illegal as a matter of law and parties cannot ratify an otherwise illegal transaction: [Florida Statute] Section 849.26 provides that “[a]ll promises, agreements, notes, bills, bonds or other contracts, mortgages or other securities . . . for the repayment of money lent or advanced at the time of a gambling transaction for the purpose of being...

21 July

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Fraudulent Inducement Renders Contract Voidable, but Induced Party can Still Ratify Contract

Posted by David Adelstein

in Trial Perspectives

Here’s an interesting tidbit when it comes to fraudulent inducement of a contract: the inducement renders a contract voidable (not void). See Buyer’s Choice Auto Sales, LLC v. Palm Beach Motors, LLC, 49 Fla. L. Weekly D1512a (Fla. 4th DCA 2024) (citation omitted). This means if a party claims they were fraudulently induced into entering a contract, and elects to sue for damages on the contract, even a contract procured by fraud, the election to sue for damages on the contract “ratifies the contract and ensures that a party who accepts the proceeds and benefits of a contract remains subject...

22 June

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Nondelegable Duty Doctrine

Posted by David Adelstein

in Trial Perspectives

The recent Fourth District Court of Appeal decision, Publix Super Markets, Inc. v. Safonte, 49 Fla.L.Weekly D1337a (Fla. 4thDCA 2024), discussed what is known as the nondelegable duty doctrine: A business establishment owes a non-delegable duty to an invitee “to maintain the premises in a safe condition.” Pembroke Lakes Mall Ltd. v. McGruder, 137 So. 3d 418, 431 (Fla. 4th DCA 2014). “[A] breach of [this] duty is a form of direct liability, in which a business owner may be liable to the plaintiff for negligently failing to take reasonable efforts to maintain the premises in a safe condition.” Id. Thus, a business establishment...

15 June

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Preferred Contractor Endorsement in Property Insurance Policies

Posted by David Adelstein

in Trial Perspectives

Certain property insurance policies have what is known as a preferred contractor endorsement. It can be written in numerous ways, but the objective is to allow the insurer to perform covered repairs through its preferred contractor. In a recent case, the property insurance policy contained this endorsement: That policy includes a preferred contractor endorsement which states that when a covered loss occurs to the insured's property “and repairs are necessary to protect property from further damage,” the insured must notify People's Trust [insurer] “before authorizing or commencing repairs so [People's Trust], at [its] option, may select Rapid Response Team, LLC, to make...

09 June

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Unit Owner vs. Association Dispute Regarding “Duty to Repair”

Posted by David Adelstein

in Trial Perspectives

If you live in a community governed by an association – whether it is a condominium association or homeowner’s association – you may find yourself at odds with the association over certain issues. Or the association may find itself at odds with you over positions you want to take. This seemed by the dynamics of a recent appeal dealing with the duty to repair damage. In this matter, a unit owner notified its condominium association over leaks and mold in its unit. A driving leak was caused by a leak from an upstairs unit. The association did not remediate the unit...

28 May

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Difference Between Conversion and Civil Theft

Posted by David Adelstein

in Trial Perspectives

A recent case discusses the distinction between a conversion claim and a civil theft claim. Guess what? It’s a minor distinction, but one with a huge difference. In Batista v. Rodriguez, 49 Fla.L.Weekly D1099a (Fla. 3d DCA 2024), the allegations were that people wrongfully received checks from a woman’s bank account. These checks were the result of people taking advantage and exerting undue influence over the woman. A letter was sent demanding a return of the money and the money was not returned. The woman was found to be incapacitated and the woman’s guardian filed a lawsuit for conversion and civil...

19 May

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Don’t File a Meritless Claim You Know is Meritless (You May be Exposed to a 57.105 Motion)

Posted by David Adelstein

in Trial Perspectives

Florida Statute 57.105 is a statute designed to deter meritless filings: “The central purpose of section 57.105 is, and always has been, to deter meritless filings and thus streamline the administration and procedure of the courts.” Mullins v. Kennelly, 847 So. 2d 1151, 1154 (Fla. 5th DCA 2003). Subsection (1) of the statute provides: (1) Upon the court's initiative or motion of any party, the court shall award a reasonable attorney's fee, including prejudgment interest, to be paid to the prevailing party in equal amounts by the losing party and the losing party's attorney on any claim or defense at any time during a civil...

04 May

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There can be Consequences when Voluntarily Dismissing Lawsuit

Posted by David Adelstein

in Trial Perspectives

There can be consequences when you voluntarily dismiss a lawsuit simply because you don’t want to deal with the claim anymore. Or, you realize there are problems with your claim. Such consequences can arise if there is a basis for the prevailing party to recover attorney’s fees. Thus, don’t think you can just voluntarily dismiss your case without dealing with attorney’s fees. These are consequences you may need to deal with if you want to voluntarily dismiss your lawsuit. “The general rule is that when a plaintiff voluntarily dismisses an action, the defendant is the ‘prevailing party' within the meaning of...

14 April

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Equitable Estoppel SOMETIMES Allows a Non-Signatory the Right to Compel Arbitration

Posted by David Adelstein

in Trial Perspectives

“Where a contract subjects to arbitration claims between certain enumerated parties, that limiting language matters. Under appropriate circumstances, a non-signatory might invoke equitable estoppel to access an arbitration clause, but not to excavate it and fill it with new terms.” Florida Roads Trucking, LLC v. Zion Jacksonville, LLC, 49 Fla.L.Weekly D819a (Fla. 5th DCA 2024). Arbitration is a creature of contract. In Florida Roads Trucking, a non-signatory to a contract tried to compel arbitration of a dispute arguing that the arbitration provision in the plaintiff’s contract with another party should apply. This argument is based on a theory of equitable estoppel: Florida and federal...