Walsh v. Alfidi

• Decision Date: 27 March 1984
• Docket Number: No. AR-339,AR-339
• Citation: 448 So.2d 1084
• Parties: Theodora WALSH, Appellant, v. Frank ALFIDI and Siesta Motor Inn, Inc., Appellees.
• Court: Florida District Court of Appeals

Page 1084

448 So.2d 1084

Theodora WALSH, Appellant, v. Frank ALFIDI and Siesta Motor Inn, Inc., Appellees.

No. AR-339.

District Court of Appeal of Florida,

First District.

March 27, 1984.

Rehearing Denied May 15, 1984.

Gary A. Benson, of Weil, Johnson & Benson, Jacksonville, for appellant.

Michael Basford, of Basford & Basford, and Michael J. Korn, of Boyer, Tanzler, Blackburn, Boyer & Nichols, Jacksonville, for appellees.

ZEHMER, Judge.

Appellant Walsh received a final judgment for compensatory damages on her claim that appellees, Alfidi and Siesta Motor Inn, fraudulently misrepresented the condition and business use of the motel restaurant she leased from them. Both parties have appealed. Walsh contends that the trial court erred in refusing to submit her claim for punitive damages to the jury. Appellees complain of two evidentiary rulings and also contend that the evidence is insufficient to establish fraud on their part. We agree with Walsh and reverse.

On November 12, 1981, Walsh filed a complaint against appellees alleging fraud and seeking compensatory and punitive damages. The two primary allegations of the complaint were that Alfidi fraudulently and intentionally misrepresented the character of the restaurant operation on the motel property as a "mom and pop style family restaurant" when Alfidi knew that the restaurant catered to prostitutes and drug users. Walsh also alleges that Alfidi fraudulently and intentionally misrepresented the condition of the plumbing system in the restaurant when he knew that such system was defective. Based upon Alfidi's representations, appellant undertook to lease and operate the restaurant.

The case was tried to a jury, and at the close of Walsh's case the trial judge directed a verdict against her on punitive damages. The trial judge specifically held that although Walsh had proven all of the necessary elements of fraud she had failed to produce any evidence of malicious or outrageous conduct by Alfidi that would support an award of punitive damages. The jury returned a verdict in favor of appellant for $2,946 compensatory damages. Both parties have appealed.

Addressing, first, appellees' cross-appeal, we hold that the trial court did not commit reversible error in receiving the evidence complained of by appellees and that the trial court was correct in denying appellees' motion for directed verdict on Walsh's fraud claim. There was sufficient evidence for the jury to find that Alfidi intentionally misrepresented the condition of the restaurant plumbing system when he knew that the system was substantially defective or, because of past adverse experience with the plumbing on the entire premises, knew that he lacked sufficient knowledge to make such affirmative representation; that Alfidi intentionally misrepresented the restaurant was a "mom and pop style family restaurant" operation while knowing that the neighborhood clientele included a significant number of prostitutes and drug users; that Alfidi made these misrepresentations for the purpose of inducing Walsh to lease the property; and that Walsh relied upon these fraudulent statements to her detriment.

Addressing, next, the issue raised by Walsh, we hold that the trial court erred in taking the punitive damage claim from the jury. Punitive damages may be awarded when there is evidence that the defendant acted with malice, moral turpitude, wantonness, willfulness, or reckless indifference to the rights of others. Campbell v. Government Employees Insurance Co., 306 So.2d 525 (Fla.1975); Florida Power & Light Co. v. Walker, 440 So.2d 659 (Fla. 1st DCA, 1983); Florida Standard Jury Instruction 6.12 (1982). In Arab Termite & Pest Control of Florida, Inc. v. Jenkins, 409 So.2d 1039 (Fla.1982), the Supreme Court defined the respective roles of the trial court and the jury regarding punitive damages, quoting from Wackenhut Corp. v. Canty, 359 So.2d 430, 435 (Fla.1978):

When claims for punitive damages are made, the respective provinces of the court and jury are well defined. The court is to decide at the close of evidence whether there is a legal basis for recovery of punitive damages shown by any interpretation of the evidence favorable to the plaintiff. Winn & Lovett Grocery Co. v. Archer, 126 Fla. 308, 171 So. 214, 222 (Fla.1936). A legal basis for punitive damages exists where torts are committed in an outrageous manner or with fraud, malice, wantonness or oppression. Id. [171 So.] at 221. Once the court permits the issue of punitive damages to go to the jury, the jury has the discretion whether or not to award punitive damages and the amount which should be awarded. Punitive damages 'are peculiarly left to the discretion of the jury as the degree of punishment to be inflicted must always be dependent on the circumstances of each case, as well as upon the demonstrated...