L. Y. DOUGLAS, APPELLANT,
v.
CITY OF DUNEDIN, APPELLEE

Fla. 2d DCA | 1967-09-29
No. 7412
PIERCE, J., and MAXWELL, OLIVER, Associate Judge, concur.
202 So. 2d 787 Florida District Court of Appeal, Second District (1967) Positive Treatment
Cited by 6 cases

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Holding

A contract between a municipality and an attorney for collecting delinquent taxes, with compensation contingent on successful collection and sale of foreclosed property, is valid and does not offend public policy.


Facts & Procedural History

An attorney contracted with a city to collect delinquent tax liens, receiving 10% of collected funds. If the city purchased property at foreclosure, t…

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Opinion of the Court
SHANNON, Acting Chief Judge.

SHANNON, Acting Chief Judge.

Appellant L. Y. Douglas, an attorney, sued appellee City of Dunedin for monies allegedly owing to him by contract. His complaint was dismissed for failure to state a cause of action, with leave to amend within twenty days. Upon his failure to amend, final judgment was entered against him, and he appeals.

Appellant’s complaint was filed before the effective date of Fla.R.Civ.P. 1.110 (d), 30 F.S.A., which makes it clear that affirmative defenses appearing on the face of a complaint are to be considered for purposes of a motion to dismiss for failure to state a cause of action. However, the conflict on this matter which existed prior to the enactment of Fla.R.Civ.P. 1.110(d) was resolved by the Florida Supreme Court in Hawkins v. Williams, Fla. 1967, 200 So.2d 800, wherein the Court held that under the rules preceding those now in effect, affirmative defenses appearing on the face of a complaint can be considered for purposes of a motion to dismiss. 200 So.2d at 802. Therefore, in determining the sufficiency of appellant’s complaint, we will consider any affirmative defenses appearing on its face which would clearly defeat the claim for relief.

Appellant’s complaint alleged the following facts: In March, 1938, the parties executed a contract whereby appellee hired appellant to collect, and where necessary, to foreclose, certain delinquent tax liens. As compensation appellant was to receive ten per cent of monies actually collected by him. In the event foreclosure was necessary and appellee purchased the encumbered property at the ensuing public sale, appellant was to receive ten per cent of the price realized by appellee upon subsequent sale, if ever, of such property. Pursuant to the contract appellant caused certain property to be sold at foreclosure sale, and it was purchased by appellee. When appellee sold such property in 1964 for $17,500.00, appellant claimed his ten per cent, and the city commission refused his claim.

If the fact that one of the parties is a municipality is disregarded, there is nothing which renders the contract invalid. It might appear that the obligation assumed by appellee was merely an illusory one, as appellee had complete control over whether appellant would receive any compensation at all for his services in connection with the property involved. A promise, however, is illusory only if it in no way limits the promisor’s future action. Appellee could not sell the property without paying ten per cent of the sale price to appellee. To this extent, then, appellee’s promise in fact lim*789ited its future action, and the contract contained sufficient mutuality of obligation to be valid.

Thus, the contract is valid unless rendered otherwise by the fact that one of the parties to it is a municipality. Any additional considerations necessitated by such fact are by their nature founded on questions of public policy, and appellee’s various asserted grounds of invalidity are basically contentions that the contract offends public policy.

Appellee specifically contends that its 1938 commission violated public policy in that it bound appellee in perpetuity. Although a municipality, perhaps, cannot legally bind itself in perpetuity, the allegedly perpetual nature of appellee’s obligation is not offensive to any public policy considerations. Appellant was not hired for an indefinite period of time. The only resemblance to “perpetuity” contained in the agreement is the fact that the time for performance by appellee was not definitely fixed in terms of a specified date. This does not mean, however, that appellee was perpetually bound. Indeed, its obligation was not even to arise until it sold the land involved. An obligation to pay a specified sum of money upon the occurrence of a particular event is not a perpetual obligation offensive to public policy.

Appellee also contends that the contract offends public policy in that it permitted the 1938 commissioners to bind their successors in office. Admittedly, the attorney-client relationship is a personal one, and, perhaps, each city commission should be free to select its own confidential legal advisor. Accordingly, a particular commission should not be bound in this regard by its predecessor’s selection. It would be illogical, however, at least as it concerns public policy, to apply this line of reasoning to the circumstances involved here. The relationship between appellant and the 1938 commission was not a confidential one for the performance of personal services to the commissioners. It was merely a matter of appellant’s being hired by the commissioners, acting as agents of appellee, to handle certain specified matters for a fixed compensation, with no time factor involved. The contract was with appellee rather than with the commissioners in their personal capacities as such. A municipality continues as the same legal entity regardless of changes in the personnel on its governing council. Such continuity is necessary for the transaction of.business by it.

Appellee further contends that the 1938 commissioners abused their discretion in agreeing to the manner of compensation which gives rise to the cause sub judice. This arrangement, however, when considered in the context of the circumstances existing at the time it was made, by no means offends public policy. Indeed, it was highly advantageous to appellee. The contract was executed at a time when municipalities had definite financial problems, of which delinquent property taxes were very much a contributing cause. Ap-pellee was obligated to compensate appellant only when it actually realized funds as a result of his services. The contract was fair and reasonable, was prompted by the necessities or existing conditions, and was highly advantageous to appellee.

For these reasons we find that appellant’s complaint stated a cause of action. Accordingly, the order of the court below dismissing the complaint is reversed.

Reversed.

PIERCE, J., and MAXWELL, OLIVER, Associate Judge, concur.


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Citator

Cited By

  • City OF Riviera Beach v. Witt, 286 So. 2d 574 (Fla. 4th DCA 1973)
    …eight; they were dealing with a crucial business matter and the very purpose that actuated Commission-Manager form of City Government, was more efficient business administration.” (Emphasis added.) See also Douglas v. City of Dunedin, Fla.App.1967, 202 So. 2d 787.1 The operation of a Municipal Court by the City under its charter and the employment of a City Prosecutor to prosecute all persons arrested and brought to trial before the court for the violation of municipal ordinances “has to do with the adminis…
  • Miller v. Federated Dep't Stores, Inc., 457 So. 2d 1151 (Fla. 3d DCA 1984)
    …PER CURIAM. Affirmed. Douglas v. City of Dunedin, 202 So. 2d 787 (Fla. 2d DCA 1967); Curran & MacDonell, Inc. v. Pearre, 202 So. 2d 858 (Fla. 1st DCA 1967).…
  • Famous Brands, Inc. v. David Sherman Corp., 814 F.2d 517 (8th Cir. 1987)
    …‘only if it in no way limits the promisor’s future action. * * * [Where a party has] impliedly promised to use his best effort [to carry out the goals of the contract] * * * there was adequate consideration.” Id. (quoting Douglas v. City of Dunedin, 202 So. 2d 787, 788 (Fla. Dist.Ct.App.1967)). This arrangement also could be regarded as a “requirements” contract, under which Sherman promised to fill all of Famous’ Everclear needs in return for Famous’ promise to buy all of its Everclear from Sherman. South D…

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