LARJIM MANAGEMENT CORPORATION AND LAWRENCE GORDON, APPELLANTS,
v.
CAPITAL BANK, APPELLEE

Fla. 3d DCA | 1989-12-19
No. 89-1169
Before SCHWARTZ, C.J., and BASKIN and COPE, JJ.
554 So. 2d 587 Florida District Court of Appeal, Third District (1989) Positive Treatment
Cited by 15 cases

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Synopsis

Lawrence Gordon and Larjim Management Corporation appealed a judgment requiring them to indemnify Capital Bank for losses resulting from their unauthorized endorsement and deposit of two checks payable to Atlantic Avenue West Partnership. The Florida District Court of Appeal affirmed, holding that indemnification obligations can be imposed by law even without a direct contractual relationship between parties.


Holding

The trial court correctly held that Gordon and Larjim were liable for indemnifying Capital Bank. An indemnification obligation need not derive from a specific relationship between parties but may be imposed by law when one party discharges a duty that should have been discharged by another.


Headnotes

[1] An obligation to indemnify may be imposed by law, independent of a specific relationship between the parties.

[2] Indemnity is a right that inures to a person who has discharged a duty that is owed by him but which, as between himself and another, should have been discharged by the o…

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Key Quotes

“The obligation to indemnify need not derive from a specific relationship between the parties; it may be imposed by law.”

Establishes the core principle that indemnification can arise by operation of law without a contractual relationship

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Facts & Procedural History

Larjim was the general managing partner of Atlantic Avenue West Partnership until 1984. In 1985, the Board of County Commissioners of Palm Beach Count…

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Opinion of the Court
BASKIN, Judge.

BASKIN, Judge.

Lawrence Gordon and Larjim Management Corporation [Larjim] appeal a final judgment requiring them to indemnify Capital Bank for the consequences of their unauthorized endorsement, deposit, and retention of the proceeds of two checks. We affirm.

Larjim was the general managing partner of Atlantic Avenue West Partnership [Partnership] until 1984. In 1985, the Board of County Commissioners of Palm Beach County issued two checks to the Partnership drawn on its Barnett Bank account. Lawrence Gordon, as president of Larjim, endorsed both checks and deposited them in Larjim’s Capital Bank account. The Partnership subsequently informed Barnett Bank that Larjim was not a partner and was not authorized to endorse the checks. Barnett Bank and the Partnership sued Capital Bank for reimbursement of the proceeds; Capital Bank, in turn, sued Larjim and Gordon for indemnification. Based on its finding that Gordon and Lar-jim lacked authority to endorse the checks, the trial court entered final judgment in favor of Barnett Bank and the Partnership, and subsequently entered final judgment granting Capital Bank indemnification from Gordon and Larjim. Gordon and Lar-jim appeal.1

The record contains no transcript of the hearing the trial court conducted before deciding whether Gordon or Larjim were authorized to endorse and deposit the checks on behalf of the Partnership. We must therefore assume that the trial court correctly decided that issue. Applegate v. Barnett Bank of Tallahassee, 377 So. 2d 1150 (Fla.1979); Peters Mach. Corp. v. Blairsville Mach. Prod. Co., 413 So. 2d 802 (Fla. 3d DCA 1982); Starks v. Starks, 423 So. 2d 452 (Fla. 1st DCA 1982).

Gordon argues that he had no relationship with Capital Bank which could render him liable for indemnification. We disagree. The obligation to indemnify need not derive from a specific relationship between the parties; it may be imposed by law. K-Mart Corp. v. Chairs, Inc., 506 So. 2d 7 (Fla. 5th DCA), review denied, 513 So. 2d 1060 (Fla.1987); Mims Crane Serv., Inc. v. Insley Mfg. Corp., 226 So. 2d 836 (Fla. 2d DCA), cert. denied, 234 So. 2d 122 (Fla.1969). “Indemnity has been generally defined as a right that inures to a person who has discharged a duty that is owed by him but which, as between himself and another, should have been discharged by the other.” Atlantic Nat’l Bank of Fla. v. Vest, 480 So. 2d 1328, 1331 (Fla. 2d DCA 1985), review denied, 491 So. 2d 281 (Fla.1986); Houdaille Indus., Inc. v. Edwards, 374 So. 2d 490 (Fla.1979); Stuart v. Hertz Corp., 351 So. 2d 703 (Fla.1977). Capital Bank’s liability to Barnett Bank and the Partnership resulted not from any wrongful act of its own, but from Gordon’s unau thorized conduct. Consequently, the trial court committed no error in ordering Gordon to indemnify Capital Bank.

Affirmed.

. Although Larjim is a party to this appeal, it has submitted no arguments on its behalf.


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Citator

Cited By

  • Seal Prods. v. Mansfield, 705 So. 2d 973 (Fla. 3d DCA 1998)
    …nscript of a trial or other evidentiary proceeding, where consideration of the evidence was necessary for decision of the issue presented on appeal. See Applegate v. Barnett Bank, 377 So. 2d 1150, 1152 (Fla.1979); Larjim Mgmt. Corp. v. Capital Bank, 554 So. 2d 587, 588 (Fla. 3d DCA 1989); Crusaw v. Crusaw, 637 So. 2d 949, 950 (Fla. 1st DCA 1994); State, Department of HRS v. Christman, 635 So. 2d 94, 95 (Fla. 1st DCA 1994); Walt v. Walt, 596 So. 2d 761, 762 (Fla. 1st DCA 1992); Dinn v. Haynes, 22 Fla. L. Weekl…
  • Hudson Pest Control, Inc. v. Westford Asset Mgmt., Inc., 622 So. 2d 546 (Fla. 5th DCA 1993)
    …is fact findings, and assume there was the best imaginable evidence adduced to support them. Applegate v. Barnett Bank of Tallahassee, 377 So. 2d 1150 (Fla.1979); McClosky v. Martin, 56 So. 2d 916 (Fla.1951); Larjim Management Corp. v. Capital Bank, 554 So. 2d 587 (Fla. 3d DCA 1989); Damkohler v. Damkohler, 336 So. 2d 1243 (Fla. 4th DCA 1976). Only if the trial judge erred as a matter of law, should we reverse this ease. The record shows the Trust filed a complaint dated February 17, 1992 against Hudson seek…
  • …s been an abuse of trial court’s discretion.”).1 Affirmed. . Where no transcript of the hearing on the motion to set aside exists, there is a presumption that the trial court correctly ruled on the motion below. Larjim Mgmt. Corp. v. Capital Bank, 554 So. 2d 587 (Fla. 3d DCA 1989).…

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Authorities Cited (11 total)

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