Dwight v. Tobin, 90-5037
| Decision Date | 20 November 1991 |
| Docket Number | No. 90-5037,90-5037 |
| Citation | 947 F.2d 455 |
| Parties | Charles W. DWIGHT, III, Plaintiff-Appellee, Cross-Appellant, v. Joan F. TOBIN, Howard N. Ellman, Defendants-Appellants, Cross-Appellees. |
| Court | U.S. Court of Appeals — Eleventh Circuit |
Michael Nachwalter, Scott E. Perwin, Brian F. Spector, Miami, Fla., Kenneth S. Geller, Kerry Edwards Cormier, Washington, D.C., Daniel S. Pearson, Holland & Knight, Miami, Fla., for Tobin.
John M. Brumbaugh, Robert J. Borrello, Floyd Pearson Richman Greer Weil Brumbaugh & Russomanno, P.A., Miami, Fla., David M. Berrett, Horowitz & Berrett, P.C., Denver, Colo., for Ellman.
Sara Soto, John L. Chalif, Guy B. Bailey, Jr., Mercedes C. Busto, Miami, Fla., for plaintiff-appellee, cross-appellant.
Appeals from the United States District Court for the Southern District of Florida.
Before BIRCH, Circuit Judge, TUTTLE *, Senior Circuit Judge, and FULLAM **, Senior District Judge.
This is an appeal by defendants Joan F. Tobin ("Tobin") and Howard N. Ellman ("Ellman") and a cross-appeal by plaintiff Charles W. Dwight, III ("Dwight") from various orders of the United States District Court for the Southern District of Florida stemming from a multimillion dollar civil suit involving a number of real estate partnerships in Colorado and Florida.
In 1987, Dwight filed a civil complaint in Florida state court alleging several claims against Tobin and Ellman, and the case was later removed to the District Court for the Southern District of Florida on diversity grounds. As ultimately amended, Dwight's complaint stated claims against Tobin for breach of an oral partnership agreement between Dwight and Tobin, breach of fiduciary duty, tortious interference with contractual and business relationships, and declaratory relief. Dwight's complaint against Ellman alleged that he had tortiously interfered with Dwight's business relationship with Tobin.
Tobin raised numerous counterclaims against Dwight including fraud in inducing her to invest in two Colorado real estate partnerships, civil theft, conversion, breach of fiduciary duty, breach of contract, RICO violations, and securities fraud.
Ellman asserted fourteen counterclaims against Dwight, including a claim that Dwight had breached his fiduciary duties to Ellman and a claim that Ellman had repaid $200,000 to the Bank of San Francisco on Dwight's behalf.
The jury returned a verdict for Dwight on his breach of contract claim against Tobin, awarding him $350,000 for the value of his services to the partnership and $3,000,000 for damages to his business reputation resulting from the breach. The jury also returned a verdict for Dwight on his tortious interference with business relationship claim against Ellman, awarding him $2,000,000 for injury to his business reputation.
The counterclaims raised by Tobin and Ellman were tried with Dwight's claims. The jury returned verdicts against Tobin on all of her counterclaims, except the claims for conversion of a certain automobile, contribution on the repayment of a note to the Laredo National Bank, and breach of contract in connection with the sale of stock. The jury awarded her approximately $83,000 in damages. The jury also returned verdicts against Ellman on all of his counterclaims, except the claim for repayment on the note to the Bank of San Francisco. The jury awarded Ellman $200,000 on this counterclaim.
Tobin and Ellman made timely motions for judgments notwithstanding the verdict and for new trials. The district court denied these motions, and both Tobin and Ellman appeal. 1
During the early 1980's, Charles Dwight, a Colorado real estate developer, joined Howard Ellman, an attorney, and John M. Beattie, in incorporating the Siena Company. The Siena Company served as the general partner in three real estate partnerships--the Ironwood Partnership, Siena Number One, and Siena Eastpark, Ltd. (collectively known as the "Siena Ventures")--involved in the construction and development of office, retail and manufacturing space in the Boulder, Colorado area. Dwight, Ellman, and Beattie were also individual partners in these partnerships. In all of the partnerships, Dwight was the "lead developer" and oversaw the details of the construction and management of the projects.
Both parties agree that by 1986 the Siena Ventures were in serious financial trouble. The development of the projects had required heavy financial leveraging, and the occupancy rate in the buildings was low. At least one lender had formally declared a default on its construction loans, and the partnerships were late on other payments. There was uncontradicted testimony at trial that the partnerships had engaged in irregular financial practices during this time, including commingling of funds, unauthorized overdrawing, and check kiting.
Joan Tobin was the beneficiary of a trust that included three valuable parcels of property in Naples, Florida, known as "Third Street" (retail, office, and restaurant space), "Crayton Cove" (a boathouse and land on Naples Bay), and the "Caribbean Gardens" (200 acres of undeveloped land just outside of Naples). The properties were owned by an entity known as Neapolitan Enterprises, which, in turn, was owned by the trustees of the trust. Tobin, her brother, her sister, and her mother were beneficiaries of the trust properties.
Dwight and Tobin first met at a dinner party in Aspen, Colorado in February of 1986. There, Dwight described his real estate projects in Colorado, and Tobin described her real estate interests in Florida. She invited Dwight to visit Florida, and Dwight later toured the properties offering general suggestions on how to improve their value. 2
After Dwight viewed the properties, Tobin apparently told Dwight that she wanted to form a partnership with him to develop the Florida properties. Over a period of several weeks, they reached an oral agreement on the partnership. It provided that Dwight would develop the Florida properties and would give Tobin a share in two of the Colorado partnerships that was equal to Dwight's share; Tobin would invest approximately $2,000,000 in those two Colorado partnerships, would meet all of the financial obligations of the Siena Ventures, and would give Dwight a fifty percent equity interest in the Florida properties.
Dwight presented ample evidence that Tobin frequently described herself to others as Dwight's "partner" in a real estate venture involving properties in Colorado and in Florida. The two borrowed considerable sums of money together from a number of different banks, purchased and managed several parcels of real estate together, and bought planes, cars and a boat. They even went so far as to draft a partnership agreement; this draft, however, lacked provisions on material terms and was never signed by either party.
While the evidence was disputed, Dwight presented testimony that he invested considerable time and effort in the development of the Florida properties. He diverted time and energy from his ventures in Colorado, and it was only Tobin's continuing investments in these projects (which ultimately amounted to over $2,000,000) that permitted these partnerships to meet their financial obligations. There was testimony that under a separate agreement with Neapolitan Enterprises Dwight received over $313,000 in fees and approximately $131,000 in expenses for his work on the Florida properties from the spring of 1986 to the fall of 1987.
By the spring of 1987, the business relationship between Tobin and Dwight had begun to unravel. According to Dwight, Tobin and Ellman had commenced a romantic relationship at about this time, and Ellman began to usurp Dwight's role in the alleged Dwight-Tobin partnership. Ellman gradually took control of important decisions in the Dwight-Tobin ventures, and on March 20, 1987, Tobin finally called Dwight on the telephone and terminated their business relationship. Thereafter, Ellman assumed the role as developer on the Florida properties; Neapolitan Enterprises terminated Dwight's management contract, and Tobin stopped funding the obligations of the Colorado partnerships. The Colorado properties then soon fell into bankruptcy.
There was testimony at trial that as a result of the defaults and bankruptcies Dwight suffered injury to his business and credit reputation.
Tobin argues that the district court erred in refusing her motion for a judgment NOV. Tobin argued below that the statute of frauds applied to her alleged partnership agreement with Dwight and that it was unenforceable. The district court agreed that the statute of frauds applied but held that the doctrine of part performance removed the statute of frauds barrier. Tobin challenges this finding.
As an initial matter, the district court was certainly correct in finding that the statute of frauds applies to this contract. Under well-settled Florida law, the statute of frauds bars the enforcement of a contract when the parties intended and contemplated that performance of the agreement would take longer than one year. Yates v. Ball, 132 Fla. 132, 181 So. 341, 344 (1937). The intent of the parties may be inferred from the "surrounding circumstances" or the "object to be accomplished." Id. As the purpose of the alleged Dwight-Tobin partnership was the purchase and development of properties throughout the country it seems clear that neither party intended the contract to be performed within a year from the time that it was made. While it is certainly possible that some agreements regarding the purchase and development of real estate could be accomplished within a year and would thus fall outside the statute of frauds, the contract under consideration in this case involved a long-term development scheme that would take a great deal of time to accomplish. Consequently, we agree with the...
To continue reading
Request your trial
-
Collier v. Brooks
...a judgment for damages is the only relief sought and the position of the Plaintiff is not well taken. See Dwight v. Tobin, 5 FLW Fed. C1818 [947 F.2d 455 (11th Cir.1991) ] and the cases cited We reject the reasoning of the trial court and the arguments of the parties on appeal 5 to the exte......
-
Hall v. Burger King Corp.
...contract when the parties intended and contemplated that performance of the agreement would take longer than one year." Dwight v. Tobin, 947 F.2d 455, 459 (11th Cir.1991). Here, since the standard Burger King® Franchise Agreement provides for a franchise term of twenty (20) years, the purpo......
-
Southland Bank v. A & a Drywall Supply
...Pacurib v. Villacruz, 183 Misc.2d 850, 861, 705 N.Y.S.2d 819, 827 (N.Y.Civ.Ct.1999) (emphasis added); see also Dwight v. Tobin, 947 F.2d 455, 460 (11th Cir.1991); McDabco, Inc. v. Chet Adams Co., 548 F.Supp. 456, 458 (D.S.C.1982) (it is a `well accepted doctrine that one cannot circumvent t......
-
Doe v. Roe
...Hosp. Corp. of America v. Associates in Adolescent Psychiatry, S.C. , 605 So. 2d 556, 558 (Fla. 4th DCA 1992) ; Dwight v. Tobin , 947 F.2d 455, 459 (11th Cir. 1991) ; see also Harrington v. Murray , 169 A.D.2d 580, 564 N.Y.S.2d 738, 740 (1st Dept. 1991). With the exception of Plaintiff's cl......