MacArthur v. Gaines, 73--369
| Decision Date | 11 December 1973 |
| Docket Number | No. 73--369,73--369 |
| Parties | John D. MacARTHUR and Bankers Life and Casualty Co., etc., Appellants, v. Julius GAINES et al., Appellees. |
| Court | Florida District Court of Appeals |
Fuller & Feingold, Miami Beach, for appellants.
Cushman & Cushman, Miami, for appellees.
Before PEARSON and HAVERFIELD JJ., and SPECTOR, SAM, Associate Judge.
Defendant-appellants seek review of an adverse final judgment entered in favor of plaintiffs in an action to recover obligations owed by the defendants arising out of an indemnity agreement.
In 1958, Gaines Construction Company contracted with Haven Green Development Company to construct a townsite in Brevard County, Florida. Before 1960, construction ceased for lack of funds and as a result various materialmen and laborers were about to file suit to establish mechanics' and materialmen's liens against the townsite of 'Haven Green', Gaines Construction and Julius Gaines, president and sole stockholder thereof, for monies owed them upon accounts and obligations incurred by Gaines Construction and Julius Gaines arising out of the construction and development of Haven Green for labor and material. During 1960, John MacArthur, president and sole stockholder of Bankers Life and Casualty Co., negotiated with Julius Gaines to have the entire Haven Green development turned over to him (MacArthur) in exchange for his (MacArthur's) promise to pay off all the creditors. Thereafter, Gaines agreed to the proposal upon the understanding that MacArthur would give him a written agreement to pay the creditors. In July 1961, in exchange for a conveyance of Gaines' interest in another tract of land, MacArthur delivered to Gaines the indemnity agreement upon which the instant suit was brought. Thereafter, Julius Gaines conferred with the various creditors of Haven Green and then wrote MacArthur a letter in which he advised him (MacArthur) of possible settlements and urging him to settle. In response, MacArthur told Gaines that when the creditors got tired of fighting the lawsuits, he would settle with them and for Gaines to forget about it.
In May 1962, Construction Products filed suit against Haven Green, Gaines, Gaines Construction, MacArthur, and Bankers Life and Casualty to recover an obligation incurred in the construction of Haven Green. Before trial, the suit was dismissed without prejudice as to MacArthur and Bankers Life. Construction Products recovered a judgment against Julius Gaines and Gaines Construction which paid $8,179.40 in discharge thereof.
On February 21, 1967, James Sottile, Jr. recovered judgment against Gaines Construction for $79,515.24 in Brevard County, Florida upon an obligation incurred or arising out of the construction of Haven Green. Gaines Construction thereafter filed suit in Dade County and obtained a judgment enjoining Sottile from enforcing his 1967 judgment. An appeal therefrom was taken to this court (which was decided in Sottile's favor after the conclusion of the trial of the instant case). 1 Plaintiffs, Julius Gaines and Gaines Construction Company brought action against the defendants, MacArthur and Bankers Life and Casualty Co., to recover on the indemnity agreement 2 for the two judgments entered against the plaintiffs for obligations owed to creditors on the construction project, which obligations defendant MacArthur had agreed to assume.
A non-jury trial was held, at the conclusion of which the trial judge found that the...
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