CLAUDE STAGG LEON, APPELLANT,
v.
WEST COLLIER PROPERTIES, INC., APPELLEE
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Leon purchased property from West Collier Properties through an agreement for deed based on fraudulent misrepresentations about the property's condition. The trial court awarded Leon the amount he had paid but denied prejudgment interest, reasoning the judgment was based on rescission. The appellate court reversed, holding that Leon is entitled to prejudgment interest from the date of his first payment because West Collier had beneficial use of his money.
Leon is entitled to prejudgment interest from the date he made his first payment under the agreement for deed at the statutory rate in effect at the time of each payment, because West Collier had the beneficial use of Leon's money from the time each payment was received.
[1] A plaintiff is entitled, as a matter of law, to prejudgment interest on out-of-pocket, pecuniary losses from the date of loss once the verdict liquidates those damages.
[2] Prejudgment interest is recoverable on damages representing a plaintiff's out-of-pocket, pecuniary losses, even when the judgment is based on rescission of a contract.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Once "a verdict liquidates damages on a plaintiffs out-of-pocket, pecuniary losses, the plaintiff is entitled, as a matter of law, to prejudgment interest at the statutory rate, from the date of loss."”
Establishes the legal standard for awarding prejudgment interest in cases involving liquidated out-of-pocket losses
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Join FLexlaw to unlock all legal intelligenceOn December 30, 1980, Leon signed an agreement for deed to purchase property in Collier County from West Collier Properties, which represented the pro…
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RYDER, Acting Chief Judge.
Claude Stagg Leon (Leon) appeals a final order which denied his claim for prejudgment interest prior to the date of the final judgment. We reverse because Leon is entitled to prejudgment interest from the date of loss.
On December 30, 1980, Leon signed an agreement for deed to purchase property in Collier County from the defendant, West Collier Properties, Inc. (West Collier). West Collier represented to Leon that the property was high and dry, in the path of development, close to developed communities, and close to Fort Myers and the regional airport. Subsequently, Leon discovered that West Collier had misrepresented the conditions of the property; however, Leon had made all the payments due under the agreement of deed, except one.
Leon filed suit against West Collier alleging fraudulent misrepresentation. On May 17, 1988, the trial court entered judgment against West Collier in the amount of $29,-064.00, representing the amount Leon had paid under the agreement. Leon then filed a motion for prejudgment interest, which was denied by the court because the judgment was based on rescission.
Once “a verdict liquidates damages on a plaintiffs out-of-pocket, pecuniary losses, the plaintiff is entitled, as a matter of law, to prejudgment interest at the statutory rate, from the date of loss.” Argonaut Insurance Co. v. May Plumbing Co., 474 So. 2d 212, 215 (Fla.1985). In this case, Leon suffered loss when he made the first payment under the agreement for deed to purchase. See Thomas v. Toth, 539 So. 2d 8 (Fla. 2d DCA 1989).
The trial court’s reliance on Paradis v. Second Ave. Used Car Co., 61 So. 2d 919 (Fla.1952) and Warner v. Harris Miami Beach, Inc., 219 So. 2d 93 (Fla. 3d DCA 1969), was misplaced. Both of these cases addressed the issue of whether the vendor was liable for interest on earnest money deposits when rescission occurred. Interest was denied because the vendor did not have the benefit of the use of the money. In the instant case, West Collier had the use of Leon’s money from the time it received each payment under the agreement for deed. This money was not being held in an escrow account. Therefore, we hold that Paradis and Warner are not applicable to the facts of this case.
We therefore reverse the trial court’s order denying Leon prejudgment interest, and remand with instructions that interest should begin from the date he made his first payment. The amount of interest should be determined according to the statutory rate in effect at the time of each payment.
Reversed and remanded.
FRANK and PARKER, JJ., concur.
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Citibank, N.A. v. Judien J. Studley, Inc., 580 So. 2d 784 (Fla. 3d DCA 1991)…s to the issues of liability, and reverse and remand for a determination of the proper damages and prejudgment interest. See, e.g., Argonaut Insurance Company v. May Plumbing Company, 474 So. 2d 212 (Fla.1985); Leon v. West Collier Properties, Inc., 575 So. 2d 1316 (Fla. 2d DCA 1991). Affirmed in part, reversed in part, and remanded.…
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Kolter Signature Homes, Inc. v. Shenton, 46 So. 3d 1211 (Fla. 4th DCA 2010)…purchasers demanded rescission. The purchasers argue that the court should have calculated prejudgment interest from the date the purchasers paid their deposit. The sellers correctly concede error on this point. See Leon v. W. Collier Props., Inc., 575 So. 2d 1316, 1317 (Fla. 2d DCA 1991) (plaintiff was entitled to prejudgment interest from the date of loss which should have been calculated from “when he made the first payment under the agreement for deed to purchase”). Therefore, we remand for correction of…
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Serna v. Trujillo, 664 So. 2d 49 (Fla. 3d DCA 1995)…In the instant case, Serna suffered a pecuniary loss from the date he paid Trujillo $20,000 for the sale of the stock. As such, as a matter of law, Serna is entitled to prejudgment interest from that date. See Leon v. West Collier Properties, Inc., 575 So. 2d 1316, 1317 (Fla. 2d DCA 1991); Miller v. Reinhart, 548 So. 2d 1174, 1175 (Fla. 4th DCA 1989); Chiado v. Rauch, 497 So. 2d 945, 946 (Fla. 1st DCA 1986). [*50] Accordingly, we reverse and remand for further proceedings consistent with this opinion.…
Authorities Cited
- Argonaut Ins. Co. v. MAY Plumbing Co., 474 So. 2d 212 (Fla. 1985)
- Paradis v. Second Ave. Used Car Co., 61 So. 2d 919 (Fla. 1952)
- Martin Cnty. Liquors, Inc. v. Dep't of Bus. Reg., 539 So. 2d 8 (Fla. 1st DCA 1989)
- Warner v. Harris Miami Beach, Inc., 219 So. 2d 93 (Fla. 3d DCA 1969)