Gregorio MACHADO and Sounds S.R.L., Appellants,
v.
FOREIGN TRADE, INC., Jеrry Fleischman and Alejandro Litman, Appellees.
District Court of Appeal of Florida, Third District.
*406 Sibley, Giblin, Levenson & Glaser and Irving Levenson and Allen J. Smith, Miami Beach, for appellants.
*407 Caron Balkany Goldstein and Harvey M. Goldstein, Miami, for appellees.
Before SCHWARTZ, C.J., and NESBITT and DANIEL S. PEARSON, JJ.
NESBITT, Judge.
Sounds S.R.L. appeals a final judgment entered on a jury verdict as well as post-judgment orders awarding attorney's fees and interest.[1] We affirm in part and reverse in part.
Although the facts were hotly contested at trial, we must view the evidence in a light most favorable to sustaining the jury verdict. A business relationship existed between Foreign Trade, Inc.,[2] a Florida corporation, and Sounds S.R.L.,[3] a Venezuelan corporation. Foreign Trade would acquire merchandise in the United States and ship it to clients in Venezuela obtained by Sounds. After doing business with Foreign Trade for sеveral months, Sounds owed Foreign Trade approximately $85,000. Although Sounds was the maker of three promissory notes obligating it to pay the money owed, it did not have the funds on hand to honor its obligations. Since Foreign Trade was in need of the money, not an uncollectible judgment, it agreed to extend the time for payment and execute a promissory note in favor of Sounds, which Sounds could discount with some banker friends of Sounds' principal for immediate cash. In return Sounds agreed to repay the bankers before the note came due and return the note to Foreign Trade. In a letter agreement, Sounds acknowledged its obligations and that the note from Foreign Trade was made without consideration. Immediately after receiving the note, however, Sounds negotiated it to a third party contrary to its agreement with Foreign Trade. Foreign Trade was sued by the third party for collection and incurred losses. Foreign Trade, in the present lawsuit, sued Sounds for fraud in the inducement seeking compensatory and punitive damagеs.
In addition, Foreign Trade sought recovery on two promissory notes executed by Sounds along with attorney's fees, provided for in the notes, and interest. During the course of thе trial, Foreign Trade requested that the issues of attorney's fees and interest relating to the two notes be bifurcated and heard by the trial court after the jury verdict was rendеred. Sounds objected to the bifurcation and continued its demand for jury trial on all issues so triable. Nevertheless, the trial court granted Foreign Trade's request for bifurcation.
Thе jury returned a verdict against Sounds on the fraud count, awarding Foreign Trade $15,000 in compensatory damages and $500,000 in punitive damages. The jury also returned verdicts in favor of Forеign Trade on the two promissory notes. Subsequently, the trial court awarded Foreign Trade $25,000 in attorney's fees and $33,512.11 in prejudgment interest pursuant to the verdicts on the notes.
Sounds first challenges the award of punitive damages.[4] Its sole argument on appeal is that the evidence adduced at trial, at most, established an intentional breach of contract, and, therefore, punitive damages were not recoverable. We disagree. Compensatory and punitive damages are recoverable for fraud in the inducement and an action may be based upon oral or written representations in the form of contractual promises or statements of present intention. Haendel v. Paterno,
We also reject Sounds' argument that the trial court erred in refusing to allow a witness called by Sounds to testify as an expert. Although the witness was a qualified document analyst, the basis of his ultimate opinion did not involve document analysis. Sounds sought to elicit the witness's opinion that the letter agrеement, relied upon by Foreign Trade, was not bona fide. The letter in question was typed in Spanish and there is no evidence as to who typed it or where it was typed. The bаsis for the witness's opinion concerned the spelling, spacing, and placement or construction of the contents of the letter.[5] First, it does not appear that this is an area in which the jury would be aided in their factual determination by the testimony of an "expert." Second, even if we were to assume that expert testimony would havе been beneficial to the jury on the issue presented, the witness conceded that he was not an expert in the style of typing or letter construction typical for Lаtin American businesses, such as Sounds. Proffered expert testimony is properly excluded when, as here, the witness himself concedes he is not an expert in the matter. See Warriner v. Doug Tower, Inc.,
We do agree with Sounds, however, that the trial court erred by bifurcating the trial and, thus, taking the issue of attorney's fees away from the jury. Attorney's fees provided for in a contract are properly recoverable as part of the damages in an action for breach of that contract and, as such, are to be determined by the jury where the case is tried by jury, absent some agreement or stipulation between the parties to the contrary.[6]Commodore Plaza at Century 21 Condominium Association v. Cohen,
Although Commodore Plaza would appear to support Sounds' argument with regard to prejudgment interest as well, we reach a different conclusion based on a recent supreme court decision. In Argonaut Insurance Co. v. May Plumbing Co.,
Finally, we find Sounds' last point, that the cоurt erred in failing to dismiss the suit as to Foreign Trade, Inc., because it was involuntarily dissolved for failure to file an annual report, see § 607.357(6), Fla. Stat. (1983), to be without merit. Cf. Town of Davie v. Hartline,
Accordingly, the order awarding attorney's fees is reversed; in all other respects, the final judgment and orders appealеd are affirmed; the cause is remanded for a jury trial on attorney's fees.
NOTES
Notes
[1] Sounds also noticed for appeal the post-judgment order awarding costs, but has abandоned any argument on that order.
[2] Foreign Trade, Inc. is a Florida corporation whose principals are Jerry Fleischman and Alejandro Litman. Any reference to Foreign Trade herein includes the corporation and its principals.
[3] Sounds S.R.L. is a Venezuelan corporation whose principal is Gregorio Machado. Any refеrence herein to Sounds includes the corporation and its principal.
[4] Sounds does not challenge the $15,000 compensatory award on the fraud count.
[5] Sounds admitted the signature on the letter but claimed the page was signed while blank and Foreign Trade had typed the letter above the signature. Suffice it to say there was conflicting evidence on this point and the jury resolved the conflict against Sounds.
[6] We recognize that a conflict exists in the districts on this issue. See Taggart Corp. v. Benzing,
