Peebles v. Puig
223 So. 3d 1065
| Fla. Dist. Ct. App. | 2017Background
- Puig, a licensed real estate salesperson, had an employment agreement to be the sales/marketing director for The Residences at the Bath Club, earning salary plus a 1% override on each unit Collins Avenue sold.
- Collins Avenue assigned marketing to PADC Marketing, LLC; Puig consented to assignment and was an intended third‑party beneficiary of the Collins Avenue–PADC brokerage agreement obligating PADC to pay commissions to Puig.
- Puig re‑sold 23 units; PADC initially paid commissions on seven resales, then recouped those payments and refused commissions on the remaining 16 resales, claiming the employment agreement covered only initial sales.
- Puig obtained summary judgment against Collins Avenue as a third‑party beneficiary for $423,100 (the total commissions claimed). She later sued Peebles (principal/owner of PADC and Collins Avenue) individually for fraudulent misrepresentation, alleging he knowingly told her she would be paid commissions on resales to induce performance.
- At trial the jury returned a $423,100 verdict against Peebles on the fraud claim (the same amount as Puig’s summary judgment against Collins Avenue). The trial court entered judgment for Puig; Peebles appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Puig may maintain an individual fraud claim against Peebles based on his alleged misrepresentations about commissions | Peebles knowingly misrepresented that PADC would pay resales commissions and induced Puig to continue performing, creating a fraud cause of action | The alleged misrepresentations concern matters covered by the written contract and the damages are the same as contract damages, so fraud claim duplicates breach of contract and is impermissible | Reversed: fraud claim not actionable because misrepresentations related to contract performance and did not produce independent, distinct tort damages |
| Whether fraud damages that duplicate contract damages can be recovered | Fraud resulted in Puig’s lost commissions (amount she seeks) | Damages are identical to contractual damages; tort recovery cannot duplicate contract recovery | Held: plaintiff may not recover the same contract damages via fraud; directed verdict for Peebles should have been entered |
Key Cases Cited
- La Pesca Grande Charters, Inc. v. Moran, 704 So. 2d 710 (Fla. 5th DCA 1998) (misrepresentations about contract matters are not actionable as separate fraud)
- Rolls v. Bliss & Nyitray, Inc., 408 So. 2d 229 (Fla. 3d DCA 1981) (fraud related to a contract requires damages that are independent, separate, and distinct from contract damages)
- Ginsberg v. Lennar Fla. Holdings, Inc., 645 So. 2d 490 (Fla. 3d DCA 1994) (breach of contractual terms may not form the basis for a tort claim when tort damages duplicate contract damages)
- Ghodrati v. Miami Paneling Corp., 770 So. 2d 181 (Fla. 3d DCA 2000) (plaintiff may not recover fraud damages that duplicate breach of contract damages)
- Tiara Condominium Ass’n v. Marsh & McLennan Cos., 110 So. 3d 399 (Fla. 2013) (not applied here; cited to clarify the court did not evaluate the economic loss rule)