Cassedy v. Alland Investments Corp.
128 So. 3d 976
| Fla. Dist. Ct. App. | 2014Background
- Cassedy filed an action for an accounting seeking to recover $315,000 invested and to recover funds diverted for personal use.
- The trial court granted summary judgment on statute-of-limitations grounds, which this court later reversed.
- On remand, the trial court granted partial summary judgment in Cassedy’s favor, allowing an accounting and rejecting a SOL defense.
- A bench trial occurred to determine damages, with evidence showing questionable, poorly documented expenditures by Earnhart and Pinkerton.
- The trial court entered a final judgment denying any relief to Cassedy, stating the business failure explained the lack of remaining funds.
- Cassedy moved for rehearing, arguing the action was an accounting, not breach of fiduciary duty, and that expenditures bore the burden of proof.
- The appellate court held the action is an accounting with different standards of proof than a breach of fiduciary duty and remanded to apply the proper burden.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Burden of proof for expenditures | Cassedy asserts accounting requires proving expenditures were legitimate. | Alland/ appellees contend expenditures were properly documented and within business judgment. | Remand to apply proper burden; accounting burden lies with appellees to prove legitimacy. |
Key Cases Cited
- Crusselle v. Mong, 59 So.3d 1178 (Fla. 5th DCA 2011) (elements of breach of fiduciary duty)
- Nayee v. Nayee, 705 So.2d 961 (Fla. 5th DCA 1998) (accounting available where fiduciary duty exists)
- New World Fashions, Inc. v. Lieberman, 429 So.2d 1276 (Fla. 1st DCA 1983) (two-step accounting process; determine right to accounting then amount)
- Technical Acoustics, Inc. v. Enterprise Nat. Bank of Jacksonville, 672 So.2d 596 (Fla. 1st DCA 1996) (burden on proponent of each credit in accounting)
- Beckerman v. Greenbaum, 439 So.2d 233 (Fla. 2d DCA 1983) (burden to establish each deduction by competent evidence)
- Traub v. Traub, 135 So.2d 243 (Fla. 2d DCA 1961) (trustee bears burden to show money expended was proper disbursement)
- Benbow v. Benbow, 117 Fla. 37, 157 So. 512 (1934) (trustee testimony insufficient where not supported by records)