WAMCO XXVIII v. INTEGRATED ELEC. ENVTS.
| Decision Date | 13 April 2005 |
| Docket Number | No. 2D04-2717.,2D04-2717. |
| Citation | 903 So.2d 230 |
| Parties | WAMCO XXVIII, LTD., a Texas Limited Liability Partnership, Appellant, v. INTEGRATED ELECTRONIC ENVIRONMENTS, INC., a Florida corporation; Mark D. Wilson, individually; Wayne L. Kahn, individually; and William O'Meara, individually, Appellees. |
| Court | Florida District Court of Appeals |
Devon G. Coughlan and Eric C. Christu of Elk, Bankier & Christu & Bakst, LLP, Boca Raton, for Appellant.
Edward K. Cheffy, Louis D. D'Agostino, and Stanley A. Bunner, Jr. of Cheffy Passidomo Wilson & Johnson, LLP, Naples, for AppelleeMark D. Wilson.
Jon Fishbane and Ashley D. Lupo of Roetzel & Andress, Naples, for AppelleeWayne Kahn.
Michael D. Moore of Roetzel & Andress, Naples, for AppelleeWilliam O'Meara.
No appearance for AppelleeIntegrated Electronic Environments, Inc.
WAMCO XXVIII, Ltd., appeals a final judgment that finds a corporate debtor liable on two promissory notes but finds in favor of appelleesMark D. Wilson, Wayne L. Kahn, and William O'Meara, the individual guarantors (collectively, the Guarantors).The trial court concluded that WAMCO failed to prove its damages against the Guarantors.Because the record evidence demonstrates that WAMCO proved its damages, we reverse that portion of the trial court's ruling and remand for entry of a judgment in favor of WAMCO.We affirm the trial court's ruling to the extent that it found that the guaranties executed in connection with a March 1998 loan did not apply to a loan made by another lender in October 1998.In early 1998 the Guarantors formed a company, appelleeIntegrated Electronic Environments, Inc.(IE2), that was in the business of installing residential audiovisual systems, lighting control, and low voltage systems.In March 1998 IE2 obtained a loan from Barnett Bank in the amount of $20,265 (the March loan).Kahn and Wilson each executed a "Continuing Unlimited Commercial Guaranty" in favor of Barnett Bank in connection with the March loan.
In October 1998 IE2 closed on a second loan in the amount of $500,000 with NationsBank (the October loan).Wilson and O'Meara each executed a "Commercial Guaranty" in favor of NationsBank in connection with the October loan.The Commercial Guaranty provides that each guarantor is responsible for 43% of the indebtedness on the October loan.
In late 1999, NationsBank became the successor to Barnett Bank.Sometime later, Bank of America became the successor to NationsBank.In 2001 WAMCO purchased the March and October loans and associated guaranties from Bank of America.WAMCO sent regular statements to IE2 regarding the balances due on the loans, and IE2 never objected to any of these statements.IE2 subsequently failed as a business and ceased making payments on the loans.After making demand, WAMCO filed suit against IE2 and the Guarantors on the outstanding obligations.
IE2 did not respond to the complaint, and a clerk's default was entered against it.Trial was held on January 21 and 22, 2004, and IE2 did not appear for trial or contest WAMCO's claim for damages.The trial court entered judgment in WAMCO's favor and against IE2 in the amount WAMCO claimed as the outstanding balances on the loans: $9658.83 in principal and interest on the March loan and $322,740.33 in principal, interest, and late charges on the October loan.
With respect to the Guarantors, the trial court made the following findings: (1) Wilson and Kahn are jointly and severally liable for the outstanding indebtedness on the March loan under the guaranties executed in connection with that loan; (2) Wilson and O'Meara are liable for 43% of the outstanding indebtedness on the October loan under the guaranties executed in connection with that loan; and (3) the continuing guaranties that Wilson and Kahn signed in favor of Barnett Bank in connection with the March loan were not effective as to NationsBank so as to obligate them on the October loan.After making these findings, the court then determined that "there was a lack of admissible evidence as to the amounts of the outstanding balances on the notes and, therefore, a failure of proof as to the amount of damages."Based on this perceived failure of proof, the trial court found in favor of the Guarantors on all of WAMCO's claims.In this appeal, WAMCO challenges the trial court's finding that there was a failure of proof and the court's entry of judgment in favor of the Guarantors.
At trial, WAMCO presented evidence, including business records, regarding the amount outstanding on the loans.The Guarantors challenged the admissibility of the records, asserting that they contained hearsay.They argued that WAMCO had obtained balance information from Bank of America at the time that WAMCO acquired the loans and that the balance information constituted hearsay.WAMCO responded that its documents were admissible as business records and that the information in those records, along with witness testimony, properly established the amounts due.
The record reflects that Robert Grauer testified for WAMCO.He is a vice president of WAMCO and a vice president of its related company, First City Servicing, which services loans for WAMCO.Grauer's duties include overseeing collections of loans that WAMCO purchases, and he was personally involved in servicing the March and October loans.Grauer testified that the beginning numbers on the outstanding balances were the numbers received from Bank of America at the time WAMCO purchased the loans.The numbers were put into First City's computer system, on WAMCO's behalf, and kept in the normal course of business.Entries related to payments and balance adjustments were made and maintained in the ordinary course of First City's business.
Grauer testified that the loan payment histories reflected payments at the time they were made and the outstanding balances.He stated that WAMCO relied on the documentation and balance information that...
To continue reading
Request your trial
-
Bank of N.Y. v. Calloway
...business records acquired from a prior loan servicer,” an illustration materialized in WAMCO XXVIII, Ltd. v. Integrated Electronic Environments, Inc., 903 So.2d 230 (Fla. 2d DCA 2005), a case factually similar to this one. In that case, WAMCO presented “loan payment histories” to prove the ......
-
Nationstar Mortg., LLC v. Berdecia
...of section 90.803(6) by independently confirming the accuracy of the records upon receipt); WAMCO XXVIII, Ltd. v. Integrated Electronic Environments, Inc., 903 So.2d 230, 233 (Fla. 2d DCA 2005) (holding loan payment history of prior servicer admissible where records received from prior serv......
- Collinson v. Miller
-
HSBC Bank United States, Nat'l Ass'n v. Buset
...trial that they had no ability to testify even to the payments they had made on the note. See WAMCO XXVIII, Ltd. v. Integrated Elec. Env'ts, Inc., 903 So.2d 230, 233 (Fla. 2d DCA 2005) ("The [opponents to admission of the business records] did not demonstrate, and nothing in the record esta......
-
Chapter 12-1 Introduction
...and Bank of N.Y. v. Calloway, 157 So. 3d 1064, 1074 (Fla. 4th DCA 2015)); WAMCO XXVIII, Ltd. v. Integrated Electronic Environments, Inc., 903 So. 2d 230, 233 (Fla. 2d DCA 2005); Bank of N.Y. v. Calloway, 157 So. 3d 1064, 1074 (Fla. 4th DCA 2015) (and the numerous cases cited therein); Deuts......
-
Hearsay exceptions: declarant available
...received from the prior maker at the time that the loans were purchased. WAMCO XXVIII, Ltd. v. Integrated Electronics Environments, Inc, 903 So.2d 230 (Fla. 2nd DCA 2005). Neeley v. State Statement in hospital record was not admissible under business record exception. Although the hospital ......
-
Chapter 13-3 Witnesses
...activity.").[28] Bank of America, N.A. v. Delgado, 166 So. 3d 857, 860 (Fla. 3d DCA 2015).[29] WAMCO v. Integrated Elec. Environ., Inc., 903 So. 2d 230 (Fla. 2d DCA 2005); Bank of New York v. Calloway, 157 So. 3d 1064 (Fla. 4th DCA 2015); AS Lily LLC v. Morgan, 164 So. 3d 124 (Fla. 2d DCA 2......
-
Chapter 13-3 Witnesses
...activity.").[28] Bank of America, N.A. v. Delgado, 166 So. 3d 857, 860 (Fla. 3d DCA 2015).[29] WAMCO v. Integrated Elec. Environ., Inc., 903 So. 2d 230 (Fla. 2d DCA 2005); Bank of New York v. Calloway, 157 So. 3d 1064 (Fla. 4th DCA 2015); AS Lily LLC v. Morgan, 164 So. 3d 124 (Fla. 2d DCA 2......