PER CURIAM.
We grant the motion for rehearing en banc, withdraw the panel opinion, and substitute the following opinion in its place.
This is an appeal filed by Howard Browning seeking review of a final judgment entered on a motion for directed verdict made by Appellee, Lynn Anne Poirier. We affirm in part and reverse in part.
Browning testified at trial that he and Poirier became romantically involved in 1991 and started living together that year. He moved into Poirier's house and remained there cohabitating with her in a romantic relationship until approximately 2009. He further testified that in 1993, they entered into an oral agreement to split the proceeds of any lottery tickets they may purchase and that this agreement was to last as long as they remained romantically involved. Some fourteen years after the alleged agreement was made, and while the parties were still romantically involved and living together, Poirier purchased the winning ticket on June 2, 2007, and collected one million dollars minus deductions for taxes. Browning subsequently requested half of the proceeds, but Poirier refused. Browning then filed the underlying suit for breach of an oral contract and unjust enrichment seeking half of the proceeds. Poirier denied the existence of any oral agreement to split future lottery proceeds and interposed the defense of the statute of frauds.
At the close of Browning's case, Poirier moved for a directed verdict on both counts of Browning's complaint. The trial court granted a directed verdict on the claim for breach of oral contract, finding that the action was barred by the statute of frauds. § 725.01, Fla. Stat. (2007). The trial court also granted a directed verdict on Browning's claim for unjust enrichment, holding that a party seeking to enforce an express contract cannot simultaneously disavow the contract and seek equitable relief in quasi-contract. Final judgment was then entered in favor of Poirier.
We believe the trial court was correct in granting a directed verdict pursuant to the statute of frauds, which provides in pertinent part:
§ 725.01, Fla. Stat. (2007). The leading case interpreting this statute is Yates v. Ball, 132 Fla. 132, 181 So. 341 (1937), wherein the court explained:
Id. at 344. The trial court granted the directed verdict concluding that "the intent was that the contract was to last and it did last, as it turns out, much longer than a year."
Moreover, Browning presented evidence and testimony that when he moved into Poirier's house in 1991, the house was in need of renovation and over the ensuing years, he spent his own money performing a variety of extensive repairs to the home. Browning further testified that he and Poirier started a business together raising and selling dogs and that he built dog pens on Poirier's property next to her house where they lived together to promote that business. Remember that since 1991, Browning and Poirier remained together for approximately sixteen years prior to the purchase of the winning lottery ticket, and when Browning was asked, "During — throughout the time that you were with her, did you plan on staying with her," Browning answered, "Yes, sir." In fact, Browning further testified that he stayed with Poirier in her home and remained in a "romantic and sexual relationship" with her until 2009. To suggest that these parties intended and agreed in 1993 that they would win the lottery, split the proceeds, and dissolve their romantic relationship in the span of one year, and that they intended anything other than a long-term relationship is belied by Browning's own testimony and the testimony of his own witnesses.
Taking the evidence in the light most favorable to Browning and drawing the reasonable inferences in his favor, the trial court decided to grant Poirier's motion for directed verdict as to the breach of the oral contract count and we believe it was correct in doing so.
Regarding the count for unjust enrichment, Browning alleged and testified that he gave Poirier the money to purchase the winning ticket and that they jointly purchased the ticket together with the implied understanding that they would share in the proceeds. Taking the evidence presented in the light most favorable to Browning, we do not believe the trial court properly granted a directed verdict in favor of Poirier on that count.
Accordingly, we affirm the judgment under review regarding the count for breach of the alleged oral contract, but reverse that part of the judgment regarding the count for unjust enrichment and remand this case to the trial court for further proceedings.
We certify to the Florida Supreme Court the following question as a matter of great public importance:
AFFIRMED in part; REVERSED in part; REMANDED; QUESTION CERTIFIED.
SAWAYA, PALMER, ORFINGER, COHEN, BERGER and WALLIS, JJ., concur.
LAWSON, J., concurs specially, with opinion, in which ORFINGER, J., concurs.
TORPY, C.J., concurs in part and dissents in part, with opinion, in which GRIFFIN, J., concurs.
EVANDER, J., recuses.
LAWSON, J., specially concurring.
I concur in the majority opinion, but write separately to briefly address three flaws in the dissent's analysis.
First, the dissent discusses the "prevailing interpretation" of this portion of the statute of frauds as if there is no other recognized interpretation. The dissent correctly states the majority rule concerning contracts of "indefinite duration" — that only those contracts which "cannot possibly be completed within a year" are barred. Restatement (Second) of Contracts § 130 cmt. a (2012). "There is, however, a line of cases holding that where it clearly appears from the nature of the contract that the parties contemplated a permanent arrangement necessarily extending beyond the year or that they did not contemplate performance within a year, the contract is within the statute and must be in writing." 72 Am. Jur. 2d Statute of Frauds § 13 (2013). Not surprisingly, this treatise lists Florida as one of four jurisdictions where this minority rule is used, citing to Yates v. Ball, 132 Fla. 132, 181 So. 341 (1937); 72 Am. Jur. 2d Statute of Frauds § 13 at n. 5; see also Leon v. Kelly, 618 F.Supp.2d 1334, 1342 (D.N.M.2008) ("The minority approach is to allow the parties' actual understanding and the surrounding circumstances to influence whether an agreement is within the Statute of Frauds." (citing LynkUs Commc'ns, Inc. v. WebMD Corp., 965 So.2d 1161, 1165 (Fla. 2d DCA 2007))).
Second, I disagree with the dissent's view that the "minority rule" "ignores the plain language of the statute, which only brings within its ambit those contracts that cannot be performed within [a year]." (Emphasis added). Section 725.01 provides in relevant part that:
§ 725.01, Fla. Stat. (2013) (emphasis added). The dissent reads the phrase "is not to be performed within the space of 1 year" to mean "is not [capable of being] performed within the space of 1 year." The majority reads the phrase "is not to be performed within the space of 1 year" to mean "is [neither intended nor likely] to be performed within the space of 1 year." Although both are plausible readings of the statute's plain language, I believe the
Ironically, the well-recognized origin of the "prevailing view" promoted by the dissent in this case is the judiciary's expressed desire to narrow the rule to as few cases as possible based upon a view that the rule unfairly limits meritorious claims. See, e.g., C.R. Klewin, Inc. v. Flagship Props., Inc., 220 Conn. 569, 600 A.2d 772, 776 (1991) ("[T]he one-year provision [of the statute of frauds] no longer seems to serve any purpose very well, and today its only remaining effect is arbitrarily to forestall the adjudication of possibly meritorious claims. For this reason, the courts have for many years looked on the provision with disfavor, and have sought constructions that limited its application."). Of course, it is beyond settled that a statute should "not be so narrowly construed that its purpose is undermined or frustrated[.]" Headley v. City of Miami, 118 So.3d 885, 891 (Fla. 1st DCA 2013) (citations omitted). Yet, the dissent advocates a narrowing construction that was adopted for the express purpose of undermining the statute. I favor a plain language construction that gives effect to the statute's purposes.
Third, I take issue with the dissent's criticism that the majority in this case is misreading the following critical language from Yates:
181 So. at 344. This is as clear a statement of the "minority view" as you will
Finally, I note that confusion and uncertainty exists in Florida because the Yates court articulated both the prevailing view and the minority rule without choosing either, and our courts have been attempting to apply both ever since. It is my hope that our supreme court will finally and definitively address the issue in this case. Although the minority rule makes more sense to me, either approach is better than the uncertainty created by attempting to apply both.
ORFINGER, J., concurs.
TORPY, C.J., concurring in part and dissenting in part.
My colleagues hold for the first time in Florida that a garden-variety terminable-at-will contract violates the statute of frauds, as a matter of law, even though the parties could have fully performed it within one year or cancelled it at any time. The fact that the contractual relationship lasted more than a year is completely irrelevant. The contract was either valid or invalid on the day it was made. Yates v. Ball, 132 Fla. 132, 181 So. 341, 344-45 (1937) (fact that performance exceeded one year is not material to determination of whether contract violated statute of frauds). Nor does the fact that the contract was between two romantically involved people bear on the legal issue, because that relationship was itself terminable-at-will. Accordingly, I dissent.
Browning and Poirier entered into an oral agreement in 1993 to share lottery winnings. Browning testified that the oral agreement was that "[w]e would play [the lottery] together and we would buy lottery tickets and we would split it." When pressed by defense counsel as to the actual words of the agreement, Browning reiterated that the two "would buy tickets and we would split the money." No other words were spoken concerning the substance of the agreement. The parties performed the agreement by travelling together to buy tickets (locally and in other counties and states), entering the stores together, and purchasing tickets. Although they never won any jackpots, they did win small amounts, which they would together reinvest in more tickets.
The majority states that this lottery pooling agreement "was to last as long as [Browning and Poirier] remained romantically involved." It then concludes that, because the parties intended to remain in the romantic relationship for more than one year, the agreement to pool lottery winnings violates the statute of frauds. This conclusion involves both a misinterpretation of the evidence and a misapplication of the law. As for the evidence, the majority relies on the following testimony by Browning to tie the duration of the
(Emphasis added). This testimony was merely Browning's acknowledgement that the end of the relationship would end the lottery pooling agreement. Browning did not say that the lottery pooling agreement must continue for as long as the parties remained romantically involved, only that the agreement would end at that time. Nothing in the lottery agreement precluded either party from terminating the lottery agreement, even before the end of the romantic relationship.
Even if the agreement was that they would play the lottery for as long as they stayed together, that does not support the conclusion that the agreement falls within the statute of frauds as one "not to be performed" within one year. Instead, such an agreement would be one of indefinite term that might or might not be performed within one year. The "not to be performed" language of the statute is expressed in the negative — meaning that the terms of the contract must contain a "negation of the right to perform it within the year" to bring the contract within the statute. Ark. Midland Ry. Co. v. Whitley, 54 Ark. 199, 15 S.W. 465, 466 (Ark.1891) (cited in L.S. Tellier, Annotation, Statute of Frauds Against Oral Contracts Not to be Performed Within Year as Applicable to Contracts Susceptible by its Terms, or by Construction, of Performance Within Year, Where Performance Within that Time is Improbable or Almost Impossible, 129 A.L.R. 534 (1940)). Accordingly, the "well-settled" rule is that only contracts that
9 Richard A. Lord, Williston on Contracts § 24:3 (4th ed. 2012) (bold emphasis added).
The majority mistakenly concludes that, when parties to a contract believe that performance will
Restatement (Second) of Contracts § 130 cmt. a (2012).
Gulf Solar, Inc. v. Westfall, 447 So.2d 363 (Fla. 2d DCA 1984), is particularly instructive here as it is the most analogous precedent available. There, the plaintiff sued on an oral employment contract for an indefinite term. During a deposition, the plaintiff admitted that he expected his employment to go on for more than one year. Id. at 365. On appeal from the denial of summary judgment based on the statute of frauds, the court held that the expectation of continued employment by both parties did not bring the contract within the statute because it was capable of performance within one year. Id. In other words, even though the
The majority neither explains, distinguishes nor contradicts any of these authorities. Instead, the majority simply concludes that the so-called qualifying rule in Yates compels reversal. Clearly, as Judge Lawson concedes, nothing in the holding in Yates supports this conclusion. In Yates, Ball, an investor in a financially troubled property, had agreed as part of a three-way agreement that he would "pay... bonds ... [which fell] due approximately four years from the date of the agreement," in exchange for the bondholders' agreement to extend the maturity on the bonds and cooperate in the extinguishment of subordinate lienors.
The starting point in Yates is the court's adherence to the principle that the applicability of the statute of frauds depends on the "terms of the contract." Only "contracts
What is not so straight forward is the so-called qualifying rule, expressed in dicta, which has led to confusion and inconsistency in the district courts.
In his concurring opinion, Judge Lawson relies upon an American Jurisprudence article setting forth a "minority view" concerning contracts of indefinite duration. He quotes from the article that "where it clearly appears from the nature of the contract that the parties contemplated a permanent arrangement necessarily extending beyond the year or that they did not contemplate performance within a year, the contract is within the statute and must be in writing." 72 Am. Jur. 2d Statute of Frauds § 13 (2013). Not quoted by Judge Lawson, however, is the very next sentence, which expounds on the sentence he quotes: "
One of the "minority view" cases cited in the American Jurisprudence article that Judge Lawson relies on provides a rare example of how the qualifying rule is applied.
According to the qualifying rule, the statute only applies if it "clearly appears
At the risk of being repetitive, I emphasize that the majority's view of Yates creates an irreconcilable conflict with the Florida Supreme Court's decision in Berger, which, post-Yates, concluded that a contract not to be performed until the death of the promisor (with no evidence that the promisor expected to die within one year) was not within the statute of frauds. The majority simply ignores Berger, rather than make any attempt to explain or distinguish it.
Here, the contract was to play the lottery and split the winnings. There was nothing within the express terms of the
Even if Browning and Poirier agreed to continue to play for the duration of the romantic relationship, because the romantic relationship was itself terminable at will, it was factually possible to perform the contract within one year — no less so than the life-of-the-person contract in Berger or life-of-the-business contracts in De Ribeaux and City of Clewiston. The fact that the parties stayed together for many years is irrelevant. The contract was either valid or invalid at its inception. Yates, 181 So. at 344-45 (fact that performance exceeded one year is not material to determination of whether contract violated statute of frauds; statute "does not apply because they may not be performed within that time"); Futch, 511 So.2d at 319; Williston on Contracts § 24:3 (if performance within year possible at time contract is made, makes no difference that performance takes longer than year). Neither the express terms nor surrounding circumstances "negated" the "right" to performance within one year. See 129 A.L.R. 534 (quoting Whitley, 15 S.W. at 466, and stating terms of contract must contain "negation of the right to perform it within the year" to bring contract within statute of frauds).
Finally, although I appreciate that my colleagues have agreed to certify a question of great public importance, and I agree that our high court's decision in Yates should be explained, I am constrained to disagree with the question posited. The appropriate question in my view is as follows:
I would reverse on both issues.
GRIFFIN, J., concurs.