E. Qualcom Corp. v. Global Commerce Center Ass'n
2011 Fla. App. LEXIS 5969
Fla. Dist. Ct. App.2011Background
- Qualcom appeals multiple summary judgments in a foreclosure action by the Global Commerce Center Association for unpaid assessments.
- Qualcom, a telecom company, purchased property in the Global Commerce Center in 2003 and began operations during its startup phase.
- The Association, as master homeowners’ association, filed suit in January 2008 seeking foreclosure for alleged unpaid assessments; Qualcom counterclaimed for damages due to the Association’s failure to maintain the roof, alleging water damage to equipment and lost business opportunities and income.
- In 2009 the Association obtained a partial summary judgment of foreclosure and a final summary judgment on Qualcom’s damages counterclaim, based on the court’s view that there were no genuine issues of material fact.
- On appeal, the Fourth District de novo reviewed the summary judgments, concluding the Association failed to prove the absence of genuine issues of material fact on Qualcom’s damages, including lost profits, and that set-off defenses precluded entry of summary judgment.
- The court reversed the partial foreclosure judgment, reversed the final judgment on the counterclaim, ordered the satisfaction of judgment vacated on remand, and remanded for further proceedings consistent with its opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was damages for personal property proven to a lack of genuine issue of material fact? | Qualcom argued damages were shown with photos and receipts; reasonable-certainty standard met. | Association contended damages were not proven with reasonable certainty. | Genuine issue of material fact existed; summary judgment improper. |
| Can lost profits be awarded when a business lacks a track record? | Qualcom relied on W.W. Gay two-part test to show causation and a measurable standard. | Association argued no lost profits due to no prior net profits. | Questions of causation and measurement of lost profits present genuine issues of material fact. |
| Does set-off defeat entry of partial summary judgment where affirmative defenses exist? | Qualcom claimed set-off due to failure to timely repair roof; linked to counterclaim damages. | Association sought foreclosure unaffected by set-off issues. | Summary judgment improper where affirmative defenses (set-off) raise material facts. |
| Did paying the judgment waive the right to appeal the partial summary judgment? | Qualcom paid to avoid sale but maintained right to appeal. | Payment could extinguish appeal rights. | Payment to avoid forced sale does not waive the right to appeal. |
| Is remand necessary to resolve remaining issues consistent with the opinion? | Judgment should reflect unresolved factual disputes for trial. | Remand not required if issues resolved. | Remand for further proceedings consistent with the opinion. |
Key Cases Cited
- W.W. Gay Mechanical Contractor, Inc. v. Wharfside Two, Ltd., 545 So.2d 1348 (Fla. 1989) (lost profits require causation and a workable yardstick for measurement)
- Fu Sheng Indus. Co. v. T/F Sys., Inc., 690 So.2d 617 (Fla. 4th DCA 1997) (two-part test for lost profits applied)
- 4 Corners Insurance, Inc. v. Sun Publications of Florida, Inc., 5 So.3d 780 (Fla. 2d DCA 2009) (owner affidavit can create genuine issue on lost profits)
- Sostchin v. Doll Enters., Inc., 847 So.2d 1123 (Fla. 3d DCA 2003) (yardstick must be reasonable and profits reasonably certain)
- Halliburton Co. v. E. Cement Corp., 672 So.2d 844 (Fla. 4th DCA 1996) (reasonableness and certainty required for loss measurement)
- Cummins v. Allstate Indem. Co., 732 So.2d 380 (Fla. 4th DCA 1999) (summary judgment cannot substitute for trial when doubt exists)
- Alejandre v. Deutsche Bank Trust Co. Ams., 44 So.3d 1288 (Fla. 4th DCA 2010) (affirmative defenses require proof to avoid judgment)
- Reeves v. N. Broward Hosp. Dist., 821 So.2d 319 (Fla. 4th DCA 2002) (burden shifts to nonmoving party once movant meets burden)
- Spencer v. DiGiacomo, 56 So.3d 92 (Fla. 4th DCA 2011) (remand for actions taken in error without jurisdiction)
- Palm Beach Pain Mgmt., Inc. v. Carroll, 7 So.3d 1144 (Fla. 4th DCA 2009) (burden-shifting framework on absence of material facts for summary judgment)