Browning v. Poirier
Browning v. Poirier
Concurring in Part
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 agreement to the duration of the relationship:
Q: Sir, you acknowledge that this agreement that you’re saying you had with [Poirier] was only effective as long as you still had a relationship with her, correct?
A: Yeah, while we was [sic] together. We was [sic] together, yes.
(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 cannot be performed within one year are within the ambit of the statute. If it can be performed within one year, then it is not rendered unenforceable under the statute, even if actual performance takes longer than one year. As Williston states:
It is well settled that the oral contracts made unenforceable by the statute because they are not to be performed within a year include only those which cannot be performed within that period. A promise which is not likely to be performed within a year, and which in fact is not performed within a year, is not within the statute if at the time the contract is made there is a possibility in*151 law and in fact that full performance such as the parties intended may be completed before the expiration of a year.
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 likely take more than one year, the statute is implicated. This interpretation ignores the plain language of the statute, which only brings within its ambit those contracts that cannot be performed within that time. As one leading commentary states:
Under the prevailing interpretation, the enforceability of a contract under the one-year provision does not turn on the actual course of subsequent events, nor on the expectations of the parties as to the probabilities. Contracts of uncertain duration are simply excluded; the provision covers only those contracts whose performance cannot possibly be completed within a year.
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 expectation of the parties was to continue in the relationship for a long period of time, because neither party was bound to continue, and because complete performance of the contract could be accomplished in less than one year, the contract was not one that could not be performed within one year. The case is analogous here because, in both situations, there is some expectation that the relationship will continue for a long period. However, in both situations, performance is incremental. In the employment context, the employee is typically paid weekly or monthly. In the instant situation, the parties participated in a weekly drawing. In both, either party is free to end the contract at any time without breach. In the procedural posture of this case, we are compelled to assume that Browning was aware of the contract and could have ended it at anytime.
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 “con
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: “Thus, if it is quite clear that the defendant’s liability under the alleged oral contract would continue for an indefinite period of time beyond ... one year, and includes no event that might end the contractual relationship ... within a year, the contract is within the statute.” The omitted sentence makes clear that a terminable-at-will contract such as the one here is outside the statute. Liability to perform does not extend beyond one year and it may be ended before then, because it may be ended by either party at any time. Again, for purposes of directed verdict, we must assume that the contract was made and Poirier was fully aware of it.
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-Faies, 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:
Is a terminable-at-will agreement to pool lottery winnings unenforceable in the absence of an express .agreement to continue the agreement for a period of time exceeding one year, when full performance of the agreement is possible within one year from the inception of the agreement.
I would reverse on both issues.
GRIFFIN, J., concurs.
. I concur with the conclusion that the directed verdict on the unjust enrichment count was error. The trial judge directed a verdict on this count based on the argument that the law will not imply a contract where an express contract exits. See, e.g., Kovtan v. Fre-deriksen, 449 So.2d 1 (Fla. 2d DCA 1984). The flaw in the trial judge's reasoning is that Browning had two alternative theories of recovery. One that the parties made an oral contract to split all winnings from playing the lottery. Two, that Browning provided the consideration for the purchase of the winning ticket with an implied understanding that they would split the winnings, if any. The jury can reject Browning's first theory, finding as a matter of fact that no contract was made, but agree with Browning on the alternative theory. If the jury concludes that an express contract did not exist, the alternative theory is not legally repugnant. Because no other issues were argued, I express no opinion on the viability of this claim or the correct measure of damages.
. This is one of the rare occasions when I part company with my learned colleague, Judge Lawson, who relies on legislative intent to support his concurrence. A statute’s intent should be determined based on the plain meaning of the words used and without resort to other construction conventions unless an ambiguity is identified. Samples v. Fla. Birth-Related. Neurological, 40 So.3d 18, 21 (Fla. 5th DCA 2010). One reason for this rule is that legislative history is difficult to discern with accuracy, particularly where, as here, we are dealing with a statute that is patterned after one adopted in England in the seventeenth century. The words here are crystal clear. The language is unequivocal. Only those contracts that are "not to be performed" within one year are prohibited. "Not to be performed” means cannot be performed. Judge Lawson cites no legislative history or other authoritative source for his conclusion. The best evidence of intent is the statute itself. The fact that the Florida legislature has made no revision to the statute when reenacted, despite decades of decisions holding that a possibility of performance takes the contract out of the statute, bulwarks that interpretation. Gulfstream Park Racing Ass'n v. Dep't of Bus. Regulation, 441 So.2d 627 (Fla. 1983) (reenactment of statute after judicial construction carries presumption that construction is correct).
. Some of the facts are more clearly presented in Ball v. Yates, 158 Fla. 521, 29 So.2d 729 0946).
. See infra note 7.
. LynldJs Communications, Inc. v. WebMD Corp., 965 So.2d 1161 (Fla. 2d DCA 2007), provides the only other example I have found. Because the case does not delineate the evidence adduced below, it is not particularly instructive. Without conceding the correct
.What is meant by "clearly appears” in this sentence is unclear to me. The later reference to "shows conclusively" adds to my confusion. I am not sure whether these are intended to be legal standards or fact issues. Many of these cases, including Yates, have been decided as a matter of law, suggesting that these are legal standards. In any event, the test seems unworkable. I suspect this is why only four jurisdictions have embraced it.
. Judge Lawson says that "should” means "expected,” but this definition renders the use of the word completely unnecessary and requires that we assume its use to be mere surplusage. The word "should” is actually derived from the English word "sholde,” which meant "obliged to.” Merriam-Webster’s Collegiate Dictionary 1153 (11th ed. 2012).
. See supra note 9.
Concurring in Part
concurs in part and dissents in part, with opinion, in which
EVANDER, J., recuses.
Concurring Opinion
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 LynlcUs 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:
No action shall be brought ... upon any agreement that is not to be performed within the space of 1 year from the making thereof .... unless the agreement or promise upon which such action shall be brought, or some note or memorandum thereof shall be in writing and signed by the party to be charged therewith or by some other person by her or him thereunto lawfully authorized.
§ 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:
[W]hen no time is agreed on for the complete performance of the contract, if from the object to be accomplished by it and the surrounding circumstances, it clearly appears that the parties intended that it should extend for a longer period than a year, it is within the statute of frauds, though it cannot be said that there is any impossibility preventing its performance within a year.
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.
. It is easy to envision scenarios involving the factual context of this case — oral agreements to split lottery proceeds — where the majority rule would exempt from the statute of frauds the very kind of dispute that the statute appears to have been enacted to bar. For example, one college roommate says to the other (probably over a beer): "Let’s agree that if either of us ever wins the lottery, we will split the proceeds.” The other roommate says, "Sure.” They do not discuss the matter again and after graduating from college eventually lose touch with each other until one sees a news report announcing that the other has just claimed a large lottery jackpot twenty-eight years later. Most reasonable people reading the statute of frauds would probably agree both that: (1) the statute by its express terms bars a claim on this oral agreement; and (2) that it makes sense that it should do so. Yet, the majority rule which Chief Judge Torpy implores us to apply in this case would allow the claim to proceed in this hypothetical.
Opinion of the Court
ON MOTION FOR REHEARING EN BANC
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 Poi-rier. 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:
No action shall be brought ... upon any agreement that is not to be performed within the space of 1 year from the making thereof ... unless the agreement or promise upon which such action shall be brought, or some note or memorandum thereof shall be in writing and signed by the party to be charged therewith or by some other person by her or him thereunto lawfully authorized.
§ 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:
[Wjhen no time is agreed on for the complete performance of the contract, if from the object to be accomplished by it and the surrounding circumstances, it clearly appears that the parties intended that it should extend for a longer period than a year, it is within the statute of frauds, though it cannot be said that there is any impossibility preventing its performance within a year.
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 Poi-rier 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:
Is an oral agreement to play the lottery and split the proceeds in the event a*147 winning ticket is purchased unenforceable under the statute of frauds when: there is no time agreed for the complete performance of the agreement; the parties intended the agreement to extend for a period longer than one year and it did extend for a period of fourteen years; and it clearly appears from the surrounding circumstances and the object to be accomplished that the oral agreement would last longer than one year?
AFFIRMED in part; REVERSED in part; REMANDED; QUESTION CERTIFIED.
. The evidence revealed that Browning did not pay rent to Poirier and that later in their relationship-a few years before the winning ticket was purchased — Browning may have seen other women. Browning also could not produce most of the receipts for the extensive repairs he claims he made to Poirier’s home. The testimony from these witnesses Browning called was apparently presented to show the jury that Browning was not a person who simply took advantage of Poirier over the many years their relationship lasted.
Reference
- Full Case Name
- Howard BROWNING v. Lynn Anne POIRIER
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- Published