UVESCO, INCORPORATED, A MASSACHUSETTS CORPORATION, AND OCEAN RANCH & VILLAS MANAGEMENT CORP., A FLORIDA CORPORATION, APPELLANTS,
v.
HOWARD C. PETERSEN ET AL., APPELLEES

Fla. 4th DCA | 1974-05-31
No. 73-226
WALDEN, MAGER, and DOWNEY, JJ., concur.
295 So. 2d 353 Florida District Court of Appeal, Fourth District (1974) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

UVESCO and Ocean Ranch appealed a trial court judgment in a lease dispute, arguing that a sale lease-back financing transaction should be treated as a mortgage subject to foreclosure proceedings rather than as a standard lease. The appellate court affirmed, holding that the parties' clear contractual language established their intent to create a lease, not a mortgage, and that the trial court properly applied landlord-tenant law.


Holding

The court held that when parties knowingly enter into instruments that clearly reflect their intent—here, characterizing the transaction as a lease with specific default provisions—courts must honor that characterization and apply the appropriate legal framework (landlord-tenant law) rather than rewrite the parties' agreement.


Headnotes

[1] Instruments executed by parties in a sale lease-back transaction will be construed according to their clear terms, reflecting the parties' agreed-upon method of financing…

[2] A lease agreement may validly provide for the automatic termination of a tenant's interest and vesting of title in the landlord upon default.

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Key Quotes

“The parties knowingly entered into a lease and the parties knowingly entered into a mortgage; the respective instruments clearly reflect what those instruments were intended to be and how the rights of the parties were intended to be determined.”

Establishes that courts must respect the parties' characterization of their transaction as expressed in the contract language.

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Facts & Procedural History

The parties entered into a sale lease-back transaction involving real property and buildings. The lease agreement explicitly provided that upon defaul…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Upon a review of the record on appeal and consideration of the briefs and oral argument of the parties we are of the opinion that no reversible error has been demonstrated. The instruments executed by the parties pursuant to a sale lease-back transaction clearly reflect a method of financing which was agreeable to all parties. The lease in question specifically provided that upon default (either in payments to be made under the lease or in payments to be made under a supplementary mortgage agreement) the tenant’s interest would terminate and the title to and ownership of all buildings automatically vest in the landlord. To declare that the lease must be terminated pursuant to “foreclosure” proceedings as being part of an overall financing transaction instead of pursuant to the customary landlord-tenant procedures would require this court to rewrite the provisions of the agreements in question.

The parties knowingly entered into a lease and the parties knowingly entered into a mortgage; the respective instruments clearly reflect what those instruments were intended to be and how the rights of the parties were intended to be determined. The trial court properly construed the lease in question as a lease and in accordance with the terms thereof properly struck the appellant’s affirmative defense relating to “a mortgage and a foreclosure action.” In addition, the trial court did not err in disallowing other affirmative defenses which were not specifically pled. North v. Culmer, Fla.App.1967, 193 So. 2d 701; Fink v. Powsner, Fla.App. 1959, 108 So. 2d 324; and Davis v. Evans, Fla.App.1961, 132 So. 2d 476.

Accordingly, having given due consideration to the foregoing and the other contentions of the appellant and being of the opinion that no reversible error has been demonstrated the judgment below is

Affirmed.

WALDEN, MAGER, and DOWNEY, JJ., concur.


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Citator

Cited By

  • Lyn-Rand Metal Fabrications v. Am. Accessories Corp., 657 So. 2d 70 (Fla. 3d DCA 1995)
    …basis for the action below. We disagree and find that the trial court properly excluded such evidence where Lyn-Rand never pled the oral agreement with specificity in any of its affirmative defenses. Fla.R.Civ.P. 1.110(d); Uvesco, Inc. v. Petersen, 295 So. 2d 353 (Fla. 4th DCA 1974); Rod-Lyn Corp. v. DeBelay, 231 So. 2d 233 (Fla. 3d DCA), cert. denied, 238 So. 2d 108 (Fla.1970). Additionally, we find that Lyn-Rand’s remaining points lack merit. Accordingly, we affirm.…

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