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TGI Development, Inc. v. CV Reit, Inc.

District Court of Appeal of Florida, Fourth District
Jan 3, 1996
665 So. 2d 366 (Fla. Dist. Ct. App. 1996)

Summary

holding that fraud in the inducement claim for economic losses is independent tort not barred by economic loss rule

Summary of this case from Monco Enterprises v. Ziebart Corp.

Opinion

No. 94-2749.

January 3, 1996.

Appeal from the Circuit Court, Palm Beach County, Ronald Alvarez, J.

Joel D. Eaton of Podhurst, Orseck Josefsberg, Eaton, Meadow, Olin Perwin, P.A., Miami, and Searcy, Denney, Scarola, Barnhart Shipley, P.A., West Palm Beach, for appellant.

John Beranek of Macfarlane, Ausley, Ferguson McMullen, Tallahassee, and J. Michael Burman of Burman Critton, North Palm Beach, for appellees.


TGI Development, Inc., appeals from a final summary judgment in which the trial court found that its common law fraud claim was barred by the economic loss rule. We reverse.

Fraud in the inducement, even when only economic losses are sought to be recovered, is the kind of independent tort that is not barred by the economic loss rule. HTP, Ltd. v. Lineas Aereas Costarricenses, S.A., 661 So.2d 1221 (Fla. 3d DCA Sept. 22, 1995); but see Woodson v. Martin, 663 So.2d 1327 (Fla. 2d DCA 1995) (common law fraud in the inducement claim seeking only economic losses is barred by economic loss rule.) However inartfully pleaded, we find that TGI's complaint sufficiently alleged a claim for common law fraud in the inducement. Therefore, it was error to grant summary judgment in favor of the appellees.

We agree with the dissenting opinions of Judges Altenbernd and Lazzara in Woodson, and thus certify conflict with the majority's decision in that case.

Even though we find the claim sufficiently pleaded, on remand we direct the trial court to allow TGI, if it be so advised, to replead its fraudulent inducement claim in an amended pleading.

REVERSED and REMANDED.

STONE, J., and STREITFELD, JEFFREY E., Associate Judge, concur.


Summaries of

TGI Development, Inc. v. CV Reit, Inc.

District Court of Appeal of Florida, Fourth District
Jan 3, 1996
665 So. 2d 366 (Fla. Dist. Ct. App. 1996)

holding that fraud in the inducement claim for economic losses is independent tort not barred by economic loss rule

Summary of this case from Monco Enterprises v. Ziebart Corp.

certifying conflict on this issue

Summary of this case from Monco Enterprises v. Ziebart Corp.

In TGI Development, we stated that we agree with the dissenting opinions of Judges Altenbernd and Lazzara in Woodson, and thus certified conflict with the majority's decision in that case.

Summary of this case from Jarmco, Inc. v. Polygard, Inc.
Case details for

TGI Development, Inc. v. CV Reit, Inc.

Case Details

Full title:TGI DEVELOPMENT, INC., APPELLANT, v. CV REIT, INC., A DELAWARE CORPORATION…

Court:District Court of Appeal of Florida, Fourth District

Date published: Jan 3, 1996

Citations

665 So. 2d 366 (Fla. Dist. Ct. App. 1996)

Citing Cases

Monco Enterprises v. Ziebart Corp.

In the instant case, appellants have pled the independent tort of fraud in the inducement, and the economic…

Yamashita v. Merck & Co.

Thus, fraud in the inducement independent of the breach of contract is not barred by the economic loss rule…