Case Name: George A. CASAVAN, et al., Appellants/Cross Appellees, v. LAND O'LAKES REALTY, INC., OF LEESBURG, et al., Appellees/Cross Appellants
Court: Florida District Court of Appeal
Jurisdiction: Florida
Decision Date: 1989-03-23
Citations: 542 So. 2d 371
Docket Number: No. 88-128
Parties: George A. CASAVAN, et al., Appellants/Cross Appellees, v. LAND O’LAKES REALTY, INC., OF LEESBURG, et al., Appellees/Cross Appellants.
Judges: COBB, J., concurs.
Reporter: Southern Reporter, Second Series
Volume: 542
Pages: 371–377

Head Matter:
George A. CASAVAN, et al., Appellants/Cross Appellees, v. LAND O’LAKES REALTY, INC., OF LEESBURG, et al., Appellees/Cross Appellants.
No. 88-128.
District Court of Appeal of Florida, Fifth District.
March 23, 1989.
Rehearing Denied May 3, 1989.
See also 526 So.2d 215.
Jackson O. Brownlee, of Law Offices of Jackson O. Brownlee, P.A., Tavares, for appellants/cross appellees.
Robert L. Appleget, Jr., of Landt, Apple-get & Wiechens, Ocala, for appellees/cross appellants.

Opinion:
ORFINGER, Judge.
After a real estate transaction between the Carharts, as sellers, and the Casavans, as buyers, fell through, the broker, Land O' Lakes Realty, Inc., claiming no interest in the fund, filed an interpleader action against both parties for a determination of who was entitled to $10,800 which had been deposited with the broker in connection with the transaction. The parties then crossclaimed against each other for the deposit, damages and specific performance.
The jury awarded the Carharts $4,320.00 for rent damages, specifically finding no actual damages for breach of the contract. Thereafter, the trial judge entered a JNOV for the Casavans as to a $5,800.00 portion of the interpled funds, and awarded the Carharts $9,000.00 for attorney's fees and costs, as the "prevailing party." The Car-harts filed a cross-appeal, but have failed to file any cross-appeal briefs. We reverse, in part.
The Casavans entered into a written contract to purchase from the Carharts a house and lot in Leesburg, Florida for $37,-000. At the time the contract was executed, they deposited a total of $5,000 as required under the sales contract, which was held in escrow by the broker. Pursuant to the contract, the Casavans were permitted to occupy the property at a rental of $400 per month after the contract was accepted, with the provision that the rent would be applied to the purchase price. The Carharts insisted, however, on a firm July 10 closing date and, if the Casavans remained in possession past July 10, they would be required to sign a rental agreement.
On July 10th no closing took place because the mortgage papers being prepared for the Casavans were not ready. To demonstrate their good faith and continued willingness to close, the Casavans deposited an additional $5,800 with the broker. This sum was the balance the Casavans needed to close, in addition to the mortgage proceeds they contemplated receiving. The Carharts, however, refused to close because the closing date had passed, and insisted that the Casavans execute a written lease agreement or vacate the premises. The Casavans refused to sign a lease agreement, remained in possession of the property and filed a specific performance suit in November which they later dismissed. They vacated the property at the end of February — some 7½ months after the July 10 closing date, paying no rent for that period.
The contract between the parties provided that if buyers should fail to perform, "the deposits) paid by the Buyer may be retained by . the . Seller as liquidated damages . and in full settlement of all claims." A liquidated damages clause is enforceable where damages are not readily ascertainable at the time the contract is entered into by the parties. See, e.g., Osceola County v. Bumble Bee Construction, Inc., 479 So.2d 310 (Fla. 5th DCA 1985); McNorton v. Pan American Bank of Orlando, 387 So.2d 393, 396 (Fla. 5th DCA 1980), rev. denied, 392 So.2d 1377 (Fla.1981), and cases cited therein. The sellers, however, chose to waive that option by seeking actual damages in their cross-claim, instead of a forfeiture of the $5,000 deposit. Mr. Carhart testified at trial that he was not claiming the deposit, but only the rent which he claimed was due.
Separate and apart from any instructions as to the claim for rent, the jury was instructed that if they determined that the Casavans breached the contract, they should award the Carharts such amount as the evidence showed would compensate them for their loss. The jury found that the Casavans had breached the contract, but that the Carharts had suffered no damages as a result. Clearly, the issue of whether the Carharts could retain the initial $5,000 deposit as liquidated damages was never presented, nor was such a finding made by the final judgment.
The jury's verdict pertaining to rent damages in the amount of $4,320 is not supported by the record. Appellee argues that the award can be justified on the theory that the Carharts are entitled to claim double rent pursuant to section 83.06 or section 83.58, Florida Statutes (1987). Section 83.06 applies only to "nonresidential tenancies," and requires a demand for double rent. It clearly is not applicable here.
Nor do we think section 83.58 applies to this case. It provides:
If the tenant holds over and continues in possession of the dwelling unit or any part thereof after the expiration of the rental agreement without the permission of the landlord, the landlord may recover'possession of the dwelling unit in the manner provided for in s. 83.59 [F.S. 1973]. The landlord may also recover double the amount of rent due on the dwelling unit or any part thereof, for the period during which the tenant refuses to surrender possession. [Emphasis added].
This is not a suit for recovery of possession of property after the expiration of a rental agreement. Possession of the premises was delivered to the Carharts prior to the commencement of this litigation.
The Carharts were entitled to receive the fair rental value of the premises for the time it was occupied by the Casavans, and the record supports no more than $400 per month for a total of eight months, or $3,200. Accordingly, we reduce the rent damage award to $3,200.
The subsequent payment of $5,800 was correctly ordered to be repaid to the Casavans because this was not a part of any required deposit, but had been paid by them to evidence their good faith intention to close when the mortgage papers were completed. Of the remaining funds in escrow, $1,014.28 had been awarded to the interpleading broker as attorney's fees and costs. Thus, of the total of $10,-800 only $3,985.72 remained to be distributed, out of which the Carharts are entitled to rent of $3,200, the balance to be paid to the Casavans. The Casavans, not the Car-harts, are thus the "prevailing parties," since they are entitled to a greater award out of the interpleaded funds than are the Carharts.
That portion of the final judgment which directs the repayment of $5,800 to the Ca-savans is affirmed. That portion of the final judgment which awards to the Car-harts damages of $4,320 plus attorney's fees of $9,000 and costs is reversed and the case is remanded with directions to modify the judgment so as to award the Carharts only the sum of $3,200 out of the escrowed funds, with any remaining balance to be paid to the Casavans, and for such further proceedings as are consistent herewith.
AFFIRMED IN PART; REVERSED IN PART and REMANDED.
COBB, J., concurs.
SHARP, C.J., dissents with opinion.
. The contract provides that "In connection with any litigation arising out of this Contract, the prevailing party will be entitled to recover reasonable attorney's fees and costs."
. Section 83.06, Florida Statutes provides: 83.06 Right to demand double rent upon refusal to deliver possession.—
(1) When any tenant refuses to give up possession of the premises at the end of his lease, the landlord, his agent, attorney or legal representatives, may demand of such tenant double the monthly rent, and may recover the same at the expiration of every month, or in the same proportion for a longer or shorter time by distress, in the manner pointed out hereinafter.
(2) All contracts for rent, verbal or in writing, shall bear interest from the time the rent becomes due, any law, usage or custom to the contrary notwithstanding.