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First Nat. Entertainment Corp. v. Brumlik

Citations: 531 So. 2d 403; 13 Fla. L. Weekly 2200; 1988 Fla. App. LEXIS 4186; 1988 WL 96453Docket: 87-1961

Court: District Court of Appeal of Florida; September 22, 1988; Florida; State Appellate Court

Narrative Opinion Summary

The case First National Entertainment Corporation (FNEC) v. Timothy S. Brumlik involves an appeal to the District Court of Appeal of Florida concerning a promissory note dispute. Brumlik, as the payee, claimed that FNEC owed him money under the note, while FNEC raised an affirmative defense of failure of consideration, arguing it did not receive the full promised consideration. The trial court granted partial summary judgment in favor of Brumlik, supported by his affidavit and a verified complaint, asserting that he had transferred a 30% ownership in CCS, Inc. as consideration. FNEC countered with an affidavit indicating that the note was not tied to this transfer but instead linked to misrepresentations and unverified debts. The appellate court found Brumlik's affidavit insufficient in substance to negate FNEC's defense, highlighting a genuine issue of material fact. The court scrutinized the compliance of Brumlik’s affidavit with Florida Rule of Civil Procedure 1.510(e), ultimately deeming it formally sufficient yet substantively lacking. Consequently, the appellate court reversed the partial summary judgment and remanded the case for further proceedings, with Judge Daukisch dissenting on the adequacy of the affidavit.

Legal Issues Addressed

Failure of Consideration in Negotiable Instruments

Application: The appellate court emphasized that the defense of failure of consideration pertains to whether the maker received the full promised consideration, as opposed to the absence of any consideration, which is a valid defense between original parties to a negotiable instrument.

Reasoning: The appellate court clarified that the issue of failure of consideration relates to whether the maker received all promised consideration, not the absence of consideration.

Requirements for Affidavits Under Florida Rule of Civil Procedure 1.510(e)

Application: The court scrutinized the sufficiency of Brumlik's affidavit under Rule 1.510(e), determining that while it met formal requirements by being based on personal knowledge, it lacked substantive content to effectively negate FNEC's defense.

Reasoning: The sufficiency of Brumlik's affidavit under Florida Rule of Civil Procedure 1.510(e) is contested. The rule mandates that affidavits must be based on personal knowledge, present facts admissible in evidence, and demonstrate the affiant's competence to testify.

Summary Judgment Standards

Application: The appellate court found that the existence of a genuine issue of material fact regarding the consideration for the note warranted a denial of the summary judgment initially granted to Brumlik.

Reasoning: The court concluded that Brumlik’s affidavit did not adequately negate FNEC’s defense, as it failed to establish that the corporation received all consideration it was entitled to. Therefore, the appellate court determined that the summary judgment should have been denied due to the existing genuine issue of fact regarding the consideration for the note.