CITY OF MASCOTTE, APPELLANT,
v.
FLORIDA MUNICIPAL LIABILITY SELF INSURERS PROGRAM, APPELLEE
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The City of Mascotte appealed the dismissal of its motion for supplemental relief seeking contract reformation in a declaratory judgment action against its insurer. The court affirmed the dismissal, holding that the city's reformation claim was a compulsory counterclaim that should have been raised in the original suit and was therefore barred.
The court held that the city's reformation claim was a compulsory counterclaim that arose out of the same transaction or occurrence as the insurer's original action and should have been raised in the original suit. Consequently, the motion for supplemental relief was properly dismissed as untimely.
[1] A motion for supplemental relief seeking reformation of a contract is untimely when filed after adjudication and appeal of the principal action for declaratory relief on…
[2] A claim for reformation of a contract arises from the same transaction or occurrence as an action for declaratory judgment interpreting that contract, making it a compuls…
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Join FLexlaw to unlock all legal intelligence“A compulsory counterclaim is one which must be raised by a defendant in the original suit or he will be forever barred from raising it. It is a defendant's cause of action arising out of the same transaction or occurrence as the plaintiffs action.”
Defines the compulsory counterclaim doctrine and establishes the standard for determining whether a claim must be raised in the original suit.
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Join FLexlaw to unlock all legal intelligenceThe City of Mascotte obtained an insurance policy from the Florida Municipal Liability Self Insurers Program. A dispute arose regarding the insurer's …
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DAUKSCH, Judge.
This is an appeal from an order dismissing a motion for supplemental relief in a declaratory judgment action filed under Section 86.061, Florida Declaratory Judgments Act. Because the relief requested was sought after adjudication of the principal action for declaratory relief (and, in fact, after an appeal in that action) we agree with the trial court that the motion was filed too late.
The principal action involved the appellee seeking declaratory relief regarding its duty to defend under its insurance policy with appellant. The insurer alleged it had no duty to defend and the insured countered by saying the insurer had a duty to defend. Thus, the issue before the trial court was a clear-cut interpretation of the policy. The city lost. It took an appeal. It lost again. The courts said the insurer had no duty to defend because the insurance policy should be interpreted that way.
Now the city is attempting to come back into court and allege a reformation of the contract. Its new allegations include a claim that the city was misled into believing there would be coverage and even though the policy may not say there was coverage that the insurer should provide it any way. The rationale urged is that the insurer said there would be coverage before the policy was issued, the city bought the policy with that assurance and the insurer cannot deny that coverage even though the policy omits it.
That matter should have been brought to the trial judge in the original suit. The relief sought is in the nature of a counterclaim and under these circumstances is a compulsory counterclaim. A compulsory counterclaim is one which must be raised by a defendant in the original suit or he will be forever barred from raising it. It is a defendant’s cause of action arising out of the same transaction or occurrence as the plaintiffs action. Here the original suit was on the contract, an interpretation of it. The supplemental relief sought is also on the contract, a reformation of it.
In Florida there is no caselaw on point but in Colorado there is. See Atchison v. City of Englewood, 180 Colo. 407, 506 P. 2d 140 (1973). We disagree with the Colorado court.
In 40 Fla.Jur.2d, Pleadings § 87 there is a statement that Florida’s rules regarding counterclaims are patterned after the federal rules. We can accept that and agree with the transaction or occurrence test set out in Roberts v. National School of Radio and Television Broadcasting, 374 F.Supp. 1266, 1270 (D.C.Ga.1974):
(1) Are the issues of fact and law raised by the claim and counterclaim largely the same?
(2) Would res judicata bar the subsequent suit on defendant’s claim absent the compulsory counterclaim rule?
(3) Will substantially the same evidence support or refute plaintiff’s claim as well as defendant’s counterclaim?
(4) Is there any logical relation between the claim and the counterclaim?
In Roberts it was held by the district judge that an affirmative answer to any of these questions would mean counterclaim is a compulsory one. We agree and say that at least numbers 1 and 4 are applicable to this case. It is in the interest of all litigants and the courts in cases where a dispute over a contract exists that all elements of that dispute be tried and resolved at one time and not by trying one tactic, then another and still another until all approaches are made. If there is a dispute resolve it, once and for all, one way or the other. This case is a prime example of what misery can be suffered and expense incurred by multiple bites at the same apple.
The order dismissing the motion for supplemental relief is affirmed.
AFFIRMED.
SHARP, J., and SCOTT, Associate Judge, concur.
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Javier H. Londono, M.D. v. Turkey Creek, Inc., 609 So. 2d 14 (Fla. 1992)…f action arising out of the transaction or occurrence that formed the subject matter of the plaintiff’s claim.” Yost v. American Nat. Bank, 570 So. 2d 350, 352 (Fla. 1st DCA 1990) (citing City of Mascotte v. Florida Mun. Liab. Self Insurers Program, 444 So. 2d 965, 966 (Fla. 5th DCA 1983), review denied, 451 So. 2d 847 (Fla.1984)). Failure to raise a compulsory counterclaim in the first suit will result in a waiver of that claim. Yost, 570 So. 2d at 352. The purpose of the compulsory counterclaim is to promo…
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Seymour v. Adams, 638 So. 2d 1044 (Fla. 5th DCA 1994)…ly, we conclude that the lower court correctly entered summary judgment on the fraud claim, which was plainly barred because not raised as a counterclaim in the first action. See City of Mascotte v. Florida Municipal Liability Self-Insurers Program, 444 So. 2d 965 (Fla. 5th DCA 1983), review denied, 451 So. 2d 847 (Fla.1984). AFFIRMED in part; REVERSED in part and REMANDED. HARRIS, C.J., and DAUKSCH, J., concur. . Seymour Construction was not a party to the lease. . The lease of the house was part of a la…
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Yost v. Am. Nat'l Bank, 570 So. 2d 350 (Fla. 1st DCA 1990)…pulsory counterclaim is a defendant’s cause of action arising out of the transaction or occurrence that formed the subject matter of the plaintiff’s claim. Fla. R.Civ.P. 1.170(a); City ofMascotte v. Florida Municipal Liability Self Insurers Program, 444 So. 2d 965, 966 (Fla. 5th DCA 1983), review denied, 451 So. 2d 847 (Fla. 1984). It is termed compulsory because the claim will be barred unless raised by the defendant in the original suit. Cher-ney v. Moody, 413 So. 2d 866, 867 (Fla. 1st DCA 1982), approved b…
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