Kavouras v. Mario City Restaurant Corp.
88 So. 3d 213
| Fla. Dist. Ct. App. | 2011Background
- Kavouras, a majority shareholder, faced a minority shareholder’s suit alleging misdirection of corporate funds for personal benefit at Mario City Restaurant Corp.
- Jagasia, a purported minority shareholder, asserted three interrelated claims: a constructive trust and accounting on behalf of Mario City (equitable) and damages on his own behalf (legal).
- The trial court severed the equitable claims from the damages claim and ordered the equitable claims tried first by the court, then the damages claim by a jury.
- Kavouras petitioned for certiorari arguing the severance and sequencing departed from essential requirements of law with no adequate remedy on appeal.
- The Florida Third District Court of Appeal agreed, certiorari was proper, quashed the severance order, and remanded for a jury to determine the relevant facts and liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether severance of interrelated claims was a departure from the essential requirements of law | Kavouras argues severance risks inconsistent outcomes and misallocates trial when facts are interrelated. | Jagasia contends severance damages both claims together to avoid inconsistent verdicts? | Yes; severance was a departure; remanded for jury determination |
| Whether certiorari is the proper remedy for a nonfinal order | Kavouras sought review because the order irreparably harmed remedy on appeal. | Jagasia contends certiorari is appropriate to correct such departures. | Certiorari proper; petition granted |
| Whether a jury must decide interrelated mixed claims first to preserve the right to jury trial | Kavouras argues no need to preserve jury rights given separate tracks. | Jagasia asserts the jury right requires that mixed issues be resolved by jury before any equitable-only phase. | Yes; trial court must proceed with jury findings on interrelated issues |
Key Cases Cited
- Banc of Am. Inv. Servs., Inc. v. Barnett, 997 So.2d 1154 (Fla. 3d DCA 2008) (certiorari for orders severing or bifurcating interrelated claims)
- ACT Servs., Inc. v. Sch. Bd. of Miami-Dade Cnty., 29 So.3d 450 (Fla. 3d DCA 2010) (severance risks inconsistent outcomes in interrelated facts)
- Bethany Evangelical Covenant Church of Miami, Fla., Inc. v. Calandra, 994 So.2d 478 (Fla. 3d DCA 2008) (premise that mixed claims require coherent adjudication of related facts)
- Yer Girl Tera Mia v. Wimberly, 962 So.2d 993 (Fla. 5th DCA 2007) (mixed equitable and legal claims with interrelated facts require jury-first approach)
- Billian v. Mobil Corp., 710 So.2d 984 (Fla. 4th DCA 1998) (considerations for bifurcation and jury rights in mixed claims)
- Marshall v. Sprecher, 559 So.2d 1280 (Fla. 2d DCA 1990) (principles for handling mixed equitable and legal claims)
- Vine v. Scarborough, 517 So.2d 726 (Fla. 3d DCA 1987) (guidance on severance and interrelated facts)