701 F.

2d 879

Louis F. CAVIC and Helen A. Cavic, his wife,

Plaintiffs-Appellees, Cross-Appellants,
v.
The GRAND BAHAMA DEVELOPMENT COMPANY,
LIMITED,
Defendant-Appellant, Cross-Appellee.
No. 81-5649.

United States Court of Appeals,

Eleventh Circuit.
March 28, 1983.

Roger C. Minahan, Minahan & Peterson, Milwaukee, Wis., for defendantappellant, cross-appellee.
J. Richard McEachern, Guilfoil, Symington, Petzall & Shoemake, St.
Louis, Mo., for plaintiffs-appellees, cross-appellants.
Appeals from the United States District Court for the Southern District of
Florida.
Before FAY and CLARK, Circuit Judges, and MARKEY* , Chief Judge.
FAY, Circuit Judge:

This is an appeal from the final judgment for $440,000.00 entered by the
district court upon a jury verdict rendered in favor of the appellees. The
appellees sued the appellant for common law fraud alleging that they were
induced by fraudulent misrepresentations to enter into contracts to purchase
from the appellant real property located in Freeport, Grand Bahama Island. A
jury found for the appellees on their common law fraud claim and awarded both
compensatory and punitive damages. We affirm the award in its entirety.

FACTS
2

Throughout the course of this litigation the appellees have maintained that they

Throughout the course of this litigation the appellees have maintained that they
are victims of a sophisticated, complicated, and fraudulent land-sale scheme
operated by the appellant. While much of the evidence adduced at trial was
conflicting and hotly contested, the following facts are basically undisputed:

The appellant is engaged in the business of developing the tourist-related

industry and land subdivisions for resale in Freeport, Bahama.

In September of 1968 the appellees travelled to Freeport for a vacation. On

September 23, 1968, the appellees signed two contracts for the purchase of two
parcels of real property from the appellant for $26,361.00 and $48,965.00. The
contracts required the appellees to make a total down payment of $15,066.00,
with sixty monthly installments of $311.00 and $574.00.

The appellees executed two contracts for the purchase of two additional parcels
of real estate in Freeport on November 23, 1968. These contracts were for
property with respective prices of $51,715.00 and $46,105.00. The contracts
required the appellees to make a total down payment of $19,564.00, with sixty
monthly installments of $543.00 and $609.00.

The appellees were unable to keep up the monthly payments on the four lots;
consequently, they eventually defaulted on the 1968 contracts. Concerned
about their investment, one of the appellees returned to the Bahamas to meet
with the appellant. As a result of this meeting, on May 17, 1972, the appellees
executed four release authorizations whereby the principal payments made on
the 1968 contracts, together with appreciation allowed by the appellant, were
applied to the purchase of two pieces of ocean-front property in Freeport.
Although no cash down payment was required for these purchases, the
appellees were obligated to pay the $154,332.00 principal balance by 120
monthly installments of $1,312.89 and $479.14. The appellees received no
money from this transaction, even though the transaction was considered a
"trade up" and appreciation was shown in the value of the original four pieces
of property purchased by the appellees.

It was later proposed that the appellees transfer their equity and appreciation in
the two pieces of oceanfront property into a venture to build an oceanfront hotel
in Freeport, since the greater marketability and resale value of the hotel would
enhance the appellees' chances of recovering their equity. Accordingly, on
March 23, 1973, the appellees executed an agreement with Gateway
Investments, Ltd. ("Gateway") in which they agreed to establish a joint venture
between themselves and others for the purpose of purchasing beachfront
property in Freeport and constructing a 400 room hotel. The venture took the

form of Clubhotels (Bahamas) Ltd. ("Clubhotels"). Gateway, as trustee for

Clubhotels, contracted with the appellant on April 6, 1973 for the sale of the
land upon which the hotel was to be built. The appellees agreed to contribute
their equity in the two pieces of oceanfront property to Clubhotels, to be used in
making partial payment of the price due under Clubhotels' contract with the
appellant for the purchase of the hotel property and the development of the
hotel. The appellees assigned their equity directly to the appellant. In return for
their contribution to the joint venture, the appellees were to receive shares of
Clubhotels' stocks in the amount of their contribution. Because the equities that
were traded in by the members of the venture far exceeded the purchase price
of the land upon which the hotel was to be constructed, the excess equities
were traded in for another piece of oceanfront property, which the venturers
were to hold free and clear without any building compulsion requirement.
8

Clubhotels continually suffered from an inability to secure financing and

necessary permits and licenses, until the time that the appellant declared
Clubhotels' contract with it to be in default in September, 1977. All of the paid
in equity, as well as the land, was forfeited to the appellant. This included the
land which Clubhotels was to receive "free and clear." These two tracts of land
subsequently were resold by the appellant.

On December 30, 1976, the appellees filed a complaint against the appellant in
the Circuit Court of Dade County, Florida, seeking compensatory and punitive
damages for alleged common law fraud and unjust enrichment. The action was
removed to the United States District Court for the Southern District of Florida
on January 31, 1977.

10

The appellees attempted to serve the appellant with process on three occasions.
Suit papers were finally served on Charles Schuette, the resident agent of
American Division, Inc., and the Florida Secretary of State. The appellant's
motions to quash service of process and dismiss for lack of in personam
jurisdiction were denied on February 17, 1978.

11

The cause was tried before a jury on April 13-16, 1981. At the close of the
appellees' case-in-chief, the trial judge denied the appellant's motion for a
directed verdict. At the close of all the evidence, the trial judge granted the
appellant a directed verdict on the unjust enrichment claim and only submitted
the common law fraud claim to the jury for determination. The jury returned its
verdict and awarded the appellees $140,000.00 in compensatory damages and
$300,000.00 in punitive damages. The appellant's post-trial motions for
directed verdict, judgment notwithstanding the verdict, or for new trial were
denied on June 1, 1981. Timely appeal was filed by the appellant on June 23,

1981. The appellees filed a cross-appeal only as to the denial of prejudgment

interest.
DISCUSSION
I. Applicable Law.
12
13

Before discussing the points of error raised on appeal by the appellant, it is

necessary to pause and decide what law governs the appellees' claim for fraud.

14

Fed.R.Civ.P. 44.1(1) requires parties to give written notice, in the pleadings or

otherwise, of their intention to assert foreign law. The Restatement (Second) of
Conflicts provides:

15

[Where] either no information, or else insufficient information, has been

obtained about the foreign law, the forum will usually decide the case in
accordance with its own local law .... The forum will usually apply its own
local law for the reason that in this way it can best do justice to the parties ....
When both parties have failed to prove the foreign law, the forum may say that
the parties have acquiesced in the application of the local law of the forum....

16

Restatement (Second) of Conflicts Section 136, comment h, at pp. 378-79

(1971); see 5 Moore's Federal Practice p. 44.1.03, p. 1655 (2d ed. 1977). Here,
even though the alleged misrepresentations were made in Freeport, none of the
parties claimed the applicability of Bahamian law or asserted that it differs
from that of Florida. Rather, recognizing that the Bahama Islands and Florida
share a common civil law background, each party asserts the similarity in the
laws governing claims for fraud in both jurisdictions and seems to have
assumed that Florida law governs. "Because the parties did not raise any
conflict of laws issue in the district court and do not raise it on appeal, under
applicable conflict of laws principles the law of the forum ( [Florida] would
govern the substantive issues due to the absence of facts justifying the
application of the law of some other jurisdiction." Montgomery Ward & Co.,
Inc. v. Pacific Indemnity Company, 557 F.2d 51, 58, n. 11 (3rd Cir.1977);
Clarkson Co. Ltd. v. Shaheen, 660 F.2d 506, 513, n. 4 (2d Cir.1981);
Commercial Insurance Company of Newark v. Pacific Peru Construction, 558
F.2d 948, 952 (9th Cir.1977); Seguros Tepeyac, S.A., Compania Mexicana v.
Bostrom, 347 F.2d 168, 174, n. 3 (5th Cir.1965) (in the absence of statute,
foreign law or rights thereunder to be given effect must be proved like any other
fact, in the absence of which the law of the forum is ordinarily applied).

II. The Sufficiency of the Evidence.

17

18

We next confront the appellant's contentions that the trial court erred in
denying its motions for a directed verdict, for judgment notwithstanding the
verdict, and for a new trial. In reviewing these claims, we need to address the
appellant's underlying arguments that the evidence was insufficient to support
the verdict and judgment.

19

The yardstick against which the above motions must be measured is a federal
one:

20

On motions for directed verdict and for judgment notwithstanding the verdict
the Court should consider all of the evidence--not just that evidence that
supports the non-mover's case--but in the light and with all reasonable
inferences most favorable to the party opposed to the motion. If the facts and
inferences point so strongly and overwhelmingly in favor of one party that the
Court believes that reasonable men could not arrive at a contrary verdict,
granting of the motions is proper. On the other hand, if there is substantial
evidence opposed to the motions, that is, evidence of such quality and weight
that reasonable and fair-minded men in the exercise of impartial judgment
might reach different conclusions, the motions should be denied, and the case
submitted to the jury.

21

Boeing Co. v. Shipman, 411 F.2d 365, 374 (5th Cir.1969). 1 "As an appellate
court, our sole function is to ascertain whether there is a rational basis in the
record for the jury's verdict; we are forbidden to usurp the function of the jury
by weighing the conflicting evidence and inferences and then reaching our own
conclusion." Reyes v. Wyeth Laboratories, 498 F.2d 1264, 1288 (5th Cir.1974);
Bauman v. Centex Corp., 611 F.2d 1115 (5th Cir.1980). After reviewing the
evidence in favor of the appellees, we find that there was sufficient evidence to
support the jury's finding that the appellant committed fraud resulting in injury
to the appellees.

22

The common law remedy for fraud "imposes upon the plaintiff the burden of
demonstrating, inter alia, '(1) a false statement of fact; (2) known by the
defendant to be false at the time it was made; (3) made for the purpose of
inducing the plaintiff to act in reliance thereon....' " Hudak v. Economic
Research Analysts, Inc., 499 F.2d 996, 1000 (5th Cir.1974), quoting Poliakoff
v. National Emblem Insurance Company, 249 So.2d 477, 478 (Fla.App., 3d
Dist.1971). The most substantial attack made by the appellant deals with the
sufficiency of the evidence for one of these elements: the falsity of
representations made by the appellant to induce the appellees to invest in real
property or to "trade up" in value from land they already owned, and whether
such representations related to fact.

23

In general, to constitute actionable fraud, a false representation must relate to an

existing or pre-existing fact, Entron Inc. v. General Cablevision, 435 F.2d 995,
997 (5th Cir.1970); Poliakoff v. National Emblem Insurance Co., 249 So.2d
477, 478 (Fla.Dist.Ct.App.), cert. denied, 254 So.2d 790 (Fla.1971), an
unspecific and false statement of opinion such as occurs in puffing generally
cannot constitute fraud. Also, a promise of future action or a prediction of
future events cannot, standing alone, be a basis for fraud because it is not a
representation, there is no right to rely on it, and it is not false when made.
Plantation Key Developers, Inc. v. Colonial Mortgage Company of Indiana,
Inc., 589 F.2d 164, 172 (5th Cir.1979); Cameron v. Outdoor Resorts of
America, Inc., 608 F.2d 187 (5th Cir.1979); Brod v. Jernigan, 188 So.2d 575,
579 (Fla.Dist.Ct.App.1966); W. Prosser, The Law of Torts Section 109, at 726
(4th ed. 1971).

24

The evidence adduced at trial reveals that the appellant acting by and through
its exclusive real estate agent, Intercontinental Realty, made numerous
representations to the appellees about land appreciation, resale factors and
recovery of equity.2 The appellant characterizes any representations made as
mere puffing, or statements of opinion and general anticipation necessarily
understood by the appellees, hence not even amounting to representations of
past or present fact. The appellees, of course, characterize the representations as
flat factual assertions about future events, of a sort susceptible to technical
prediction by individuals with the kind of special knowledge of the Bahamian
real estate market reasonably attributable to the appellant and its real estate
agent; they contend that the representations were false and known to be false
when made, or made without belief of their truth, and were part of an overall
sophisticated, fraudulent land sale scheme operated by the appellant.
Obviously, if the evidence supports a finding of an overall fraudulent land-sale
scheme, then the numerous representations and promises made by the appellant
in order to lull the appellees into participating in the scheme must be viewed in
context.

25

We take care to emphasize that our inquiry on the motions for a directed
verdict, for judgment notwithstanding the verdict, and for a new trial, is simply
whether the evidence was sufficient to permit a jury rationally to find for the
appellees on this element of their common law fraud claim. The resulting
problems of credibility, probative force and of inferences to be drawn were, of
course, for the jury. We conclude that the evidence was sufficient for the jury
to find that the appellees were victims of a fraudulent land-sale scheme
operated by the appellant, and that the various representations made by the
appellant were foreconscious deceptions which amounted to fraudulent
misrepresentation.

26

If believed, the evidence adduced at trial contained indicia of a typical landsale fraud. The appellant promised the appellees a lucrative return on their
initial investment. In a continuing effort to forestall any discovery of the fraud
and to further lull the appellees into complacency, the appellant, acting by and
through its real estate agent, kept "trading up" the appellees into "better"
investments. Throughout these various "trade ups," the appellees made it
repeatedly known that their only interest was in securing the return of their
equity; they were not concerned with making a profit. Finally, they were told
that if they invested in the Clubhotels venture this would be yet another way of
realizing their equity. There is no evidence that a hotel was ever built in
connection with this last venture. In addition to forfeiting the land upon which
the hotel was to be built, Clubhotels also lost the other parcel of land which it
was to obtain "free and clear" with no building requirement. Although the
"trade ups" were made under the guise that the "better" investments would have
greater marketability and resale value, and thus enable the appellees to realize
their equity, the true effect of these transactions was to take more money from
the appellees. There was no evidence that any of the land that the appellees had
an interest in ever appreciated in value or was ever sold, or that a hotel was
ever built in connection with the last venture. A German group was supposed to
purchase the appellees' original four tracts, as well as the two oceanfront tracts
the appellees traded their initial investments for; the German group was also
supposed to purchase the oceanfront hotel. None of these properties were ever
sold. With regard to Clubhotels, the appellees were assured that financing had
been secured and that there would be no problem in obtaining permits. Again,
none of this proved to be true. The record is clear that the appellees placed their
trust in the appellant and its real estate agent, and in said parties' numerous
representations that if they continued to "trade up" their investments they would
recover the equity which they put into the land.

27

The jury was justified in determining that these various representations were
made with knowledge of their falsity. Also, there can be no argument that these
statements were made with the intention of inducing the appellees to act upon
the representations, since the whole reason for making the statements was to
cause the sale of land or to urge the appellees to trade up in value from land
they already owned. It is clear that the appellees acted in reliance on these
statements, first to clear a profit and then in an attempt to recover their equity.
There were certainly grounds for the jury to decide that such reliance was
justifiable: the appellant consistently represented that it was a tremendously
successful, reputable company; and, the appellees themselves were
inexperienced with regard to the sale of land.

28

Appellant argues that "sales puffing" cannot be a basis for common law fraud.

But appellees' claims go much further. It was the appellees' contention that the
"scheme" involved the entire process of original purchase, trade up to more
expensive properties, use of "paper appreciation" in value, trade-in to a building
venture (hotel construction), default by joint venture (through unavailability of
funds and permits, both of which appellees maintained were controlled by
appellant), and ultimate forfeiture (total investment). Such a scheme involves
much more than puffing or predictions of the future.
29

The appellant next contends that the evidence failed to establish that
Intercontinental Realty was acting on its behalf when the agency solicited the
sales of the appellees' properties and sold the appellees' 1968 contracts and
related properties.

30

It is undisputed that Intercontinental Realty was the appellant's exclusive real

estate agent. "In an action for misrepresentation, a principal is liable for the
fraud of his agent while acting in the scope of his authority, and this principle
of law is fully applicable to corporations." Taco Bell of California v. Zappone,
324 So.2d 121, 123 (Fla.Dist.Ct.App.1975).

31

The appellant concedes that Intercontinental Realty was its "exclusive agent"
and yet argues that the agency acted on its own behalf when it solicited the
sales of the appellees' properties; the appellant maintains that no evidence was
introduced that showed that it specifically authorized Intercontinental Realty to
solicit the sale of the appellees' properties. "No such showing, however, is
required under Florida law for a principal to be bound by the acts of its agent
and an agent's authority need not be conferred in express terms, but may be
implied under justifying circumstances." City National Bank of Detroit v. Basic
Food Industries, Inc., 520 F.2d 336, 337 (5th Cir.1975), citing American
Ladder & Scaffold Co. v. Miami Ventilated Awning Mfg. Co., 161 So.2d 699,
700 (Fla.Dist.Ct.App.1964). "It is enough that the principal allows or causes
others to believe that an agent possess actual authority." Id., citing Tampa Sand
& Material Co. v. Davis, 125 So.2d 126, 127 (Fla.Dist.Ct.App.1960). "Even
when an agent's act is unauthorized, the principal is liable if the agent had the
apparent authority to do the act and that apparent authority was reasonably
relied upon by the third party dealing with the agent.... Apparent authority must
be the result of acts or omissions by the principal in order to subject the
principal to liability for the agent's actions." Benson v. Seestrom, 409 So.2d
172, 173 (Fla.Dist.Ct.App.1982); Taco Bell of California, 324 So.2d at 123. In
the instant case, the parties agree that the issue of the appellant's liability was
tried on the theory of apparent authority.

32

Apparent or ostensible authority arises where a principal allows or causes

others to believe the agent possesses such authority, as where the principal
knowingly permits the agent to assume such authority or where the principal by
his actions or words holds the agent out as possessing it. Tampa Sand and
Material Company v. Davis, Fla.App.2d 1960, 125 So.2d 126. The doctrine
rests on the premises that one who allows another to serve as his agent must
bear the loss which results to a third party from the party's dealings in reliance
on that agent's supposed authority.
33

Taco Bell of California at 123-124. Here, Intercontinental Realty, the exclusive

real estate agent for the appellant, solicited the sale of the appellees' properties
and sold the appellees' 1968 contracts and related properties.3 The appellant
now argues that Intercontinental Realty was its exclusive agent only for the
purpose of soliciting sales of appellant's real property, and the agency was not
authorized to act on its behalf in soliciting the sales of properties belonging to
others, including the properties or contracts of persons who purchased property
from the appellant. Despite the appellant's attempts to narrowly define
Intercontinental Realty's actual authority as soliciting agent for sales of its
properties, it is obvious that the agency had the broad apparent authority to
handle real estate transactions for the appellant. Intercontinental Realty handled
the initial sale of the appellant's property to the appellees in September of 1968.
None of the facts or circumstances of this transaction or any of the subsequent
real estate transactions put the appellees on notice that Intercontinental Realty's
authority as the appellant's exclusive real estate agent was limited to soliciting
sales of the appellant's properties. Indeed, the appellant concedes that it did not
introduce any contract delineating the agency relationship between itself and
Intercontinental Realty, and that it failed to introduce into evidence anything
that would have indicated to the appellees that Intercontinental Realty's
authority to act on the appellant's behalf was limited to soliciting the sale of the
appellant's real estate. Therefore it was reasonable for the appellees to assume
that Intercontinental Realty was acting on the appellant's behalf and within its
authority when the agency solicited the sale of their contracts and properties.
Moreover, the jury was justified in its finding of Intercontinental Realty's
apparent authority. Without further extending this opinion with our analysis of
the evidence bearing upon the jury's ultimate finding of apparent authority, we
conclude that the record does support such and that on appeal we are not at
liberty to disturb it. City National Bank of Detroit v. Basic Food Industries,
Inc., 520 F.2d 336, 337 (5th Cir.1975).4

34

After reviewing the record, we find that there was sufficient evidence to permit
a jury to find that the appellant committed fraud resulting in the injury to the
appellees. The evidence and defenses urged at trial by the appellant were
matters for the fact finders. Reasonable jurors could have resolved this dispute

for either side. This being so, the trial court was guilty of no error in denying
the appellant's motions for a directed verdict and judgment n.o.v. Similarly,
given the conflicting evidence and the hotly contested inferences drawn
therefrom, denial of the defendant's motion for a new trial was not an abuse of
discretion. Bauman v. Centex Corp., 611 F.2d 1115, 1119 (5th Cir.1980); Davis
v. Yellow Cab Co., 220 F.2d 790, 791 (5th Cir.1955).
III. Jurisdiction
35

The appellant argues that the district court erred in dismissing its motion to
quash service of process and to dismiss for lack of in personam jurisdiction.
After an extensive hearing on the motion, and after considering numerous
memoranda of law submitted by the parties, together with a multitude of
exhibits and depositions taken for purposes of the motion, the trial judge
entered an order denying the appellant's motion to dismiss or quash on the
ground that valid service had been effected under Fla.Stat. Section 48.081. We
find no error in the trial judge's ruling.

36

Fla.Stat. Section 48.081(2) provides that if a foreign corporation has none of

the officers or agents specified in Section 48.081(1) in Florida, service may be
made on any agent transacting business for it in the state of Florida.5

37

After a review of the services performed by American Division, Inc. on behalf

of the appellant as reflected by the record on appeal, it is apparent that the
American Division, Inc. was the appellant's agent for transacting its business in
the state. The appellant argues, however, that the appellees' cause of action did
not arise out of its business activities in the state of Florida, and that there was
no proof that it was transacting business in the state at the time the cause of
action accrued. This argument is refuted by the evidence of record which shows
that many of the funds of which the appellees were defrauded were sent to the
appellant's post office box in Florida and deposited in a Miami bank. The
appellees also corresponded with the appellant regarding their accounts through
locations in Florida. Further, we agree with the contention of the appellees that
their cause of action did not accrue on January 1, 1970, but that it arose out of a
continuous course of conduct culminating in the hotel transactions (terminated
in 1977). The evidence of record clearly shows that the appellant was engaged
in substantial business activities in Florida during that period.

38

We find that there was substantial evidence to support the determination of the
trial judge that the appellant transacted business in the state of Florida and that
American Division, Inc. was the appellant's business agent for transacting its
business in the state. Crown Colony Club Ltd. v. Honecker, 307 So.2d 889

(Fla.App.1974). Thus, service of process upon Charles A. Schuette, the resident

agent of American Division, Inc., which at all times material was the
appellant's agent for transacting business in the state of Florida, was properly
perfected under Fla.Stat. Section 48.081.6
IV. Prejudgment Interest
39

On cross appeal, the appellees argue that the trial judge erred by failing to
allow the jury to consider prejudgment interest. With respect to entitlement to
prejudgment interest, "Florida follows the traditional rule of allowing
prejudgment interest where a claim is liquidated, but not where a claim is
unliquidated." Town of Longboat Key v. Carl E. Widell & Son, 362 So.2d 719,
723 (Fla. 2d DCA 1978). "[A] claim is unliquidated when the amount of
damages cannot be computed except on conflicting evidence, inferences and
interpretations." Cioffe v. Morris, 676 F.2d 539, 543 (11th Cir.1982) quoting
Town of Longboat Key at 723. In the instant case, not only was the right to
recovery contested but there was a genuine dispute between the litigants as to
the amount of the appellees' respective damages. This dispute was not resolved
until the jury rendered its final judgment. The record makes it clear that the
amount of the appellees' damages was uncertain and a matter of genuine
dispute. Consequently, there was no error in the trial judge's refusal to submit
the question of prejudgment interest to the jury. Parkers Mechanical Con. v.
Eastpoint Water, 367 So.2d 665 (Fla.App.1979); see Bryan and Sons Corp. v.
Klefstad, 265 So.2d 382 (Fla. 4 DCA 1972).

40

We have examined thoroughly all of the appellant's contentions raised on

appeal, including those not worthy of discussion, and find them to be without
merit. The judgment is affirmed.

41

AFFIRMED.

Honorable Howard T. Markey, Chief Judge for the Federal Circuit, sitting by
designation

This circuit has adopted as binding precedent the decisional law of the former
fifth circuit that was published before October 1, 1981. See Bonner v. City of
Prichard, 661 F.2d 1206, 1207 (11th Cir.1981)

The record is replete with representations made by Intercontinental Realty to

the appellees in order to induce them to invest in real estate or to "trade up" in
value their equities. Representations were made to the appellees that Freeport

was experiencing a "tremendous boom," that the movie industry was moving to
Freeport and sports people were already converging on the island, and that
certain parcels of land were tremendous selections. Various assurances were
made that the appellant could resell the appellees' property at a profit, allowing
the appellees to recoup their equity if they were unhappy with their initial
investment. When the appellees began having trouble making their monthly
payments on the four canal lots, the appellees met with Intercontinental Realty
in the Bahamas. Again the appellees were assured that their property could be
sold at a profit, and later were told that their property was sold to a German
Syndicate, investing money in the islands. The appellees' property was not sold.
Intercontinental Realty then proposed to the appellees that their four previous
real estate contracts be "traded up" into more expensive pieces of oceanfront
property, since the oceanfront property could more easily be sold. Relying on
these representations, the appellees traded their equities into the two pieces of
oceanfront property
On a later date, Intercontinental Realty proposed that the appellees transfer
their equity and appreciation in the two pieces of oceanfront property into a
venture to build an oceanfront hotel in Freeport. Again, the real estate agent
represented that a "trade up" in investments would make it easier for the
appellees to recover their equity. It also represented that by the time the hotel
was completed the appellees' equity would be worth three-quarters of a million
dollars. Various representations were made to the appellees concerning
financing of the hotel project, none of which proved to be true.
3

The appellant's sale of the first two tracts of land to the appellees in September
of 1963 was handled by John Hicks and Tony Rodriguez. These two
individuals witnessed the appellees' signatures on the 1968 contracts, which
were executed inside the appellant's office. The appellant's business records list
both Hicks and Rodriguez as "salesmen," and the appellees as "customers."
Rodriguez was undisputably a salesman for Intercontinental Realty. In the
appellees' November, 1968 purchase of two additional lots from the appellant,
Hick's name appears next to the notation "salesman" on the appellant's copies
of the contracts
Rodriguez, who was specifically represented to the appellees to be one of the
appellant's salesmen, took the appellees to see Martin Sinsley, Mr. Waldorf,
and Louis Bossert about land resale and payment moratoriums. All were
employed by Intercontinental Realty, the appellant's exclusive sales agent.
These individuals worked in the same building; Bossert's name appears on the
appellant's commission records; and, Sinsley corresponded with the appellees
on Intercontinental Realty stationery.

Laszlo Jarmai, a salesman for Intercontinental Realty, was listed as a salesman

and the appellees as customers on the appellant's commission records. His
name appears on the appellant's copies of the sales contracts the appellees
entered into for the two pieces of oceanfront property. Jarmai sent
correspondence to the appellees on Intercontinental Realty letterhead.
4

The fact of agency, and the boundaries of an agent's authority are determinable
as questions of fact by the jury, Hudak v. Economic Research Analysis, Inc.,
499 F.2d 996, (5th Cir.1964), as is the issue of apparent authority. United
Bonding Ins. Co. v. Banco-Suizo-Panameno, S.A., 422 F.2d 1142 (5th
Cir.1970); T.G. Bush Grocery Co. v. Conely, 55 So. 867 (Fla.1911). Further,
whether an agent's acts are within the scope of his apparent authority, and
whether the acts were ratified by the principal, are questions of fact, and
findings will not be set aside unless clearly erroneous. Boque Electric
Manufacturing Co. v. Coconut Grove Bank, 269 F.2d 1 (5th Cir.1959); One
Hour Valet of America, Inc. v. Keck, 157 So.2d 83 (Fla.App.1963)

Section 48.081 provides:

(1) Process against any private corporation, domestic or foreign, may be served:
(a) On the president or vice-president, or other head of the corporation; and in
his absence:
(b) On the cashier, treasurer, secretary or general manager; and in the absence
of all of the above:
(c) On any director; and in the absence of all of the above:
(d) On any officer or business agent residing in the state.
(2) If a foreign corporation has none of the foregoing officers or agents in this
state, service may be made on any agent transacting business for it in this state.
(3) As an alternative to all of the foregoing, process may be served on the agent
designated by the corporation under Section 48.091.
(4) This section does not apply to service of process on insurance companies.
(5) Where a corporation has a business office within the state and is actually
engaged in the transaction of business therefrom, service upon any officer or
business agent, resident in the state, may personally be made, pursuant to this
section, and it is not necessary in such case, that the action, suit or proceeding
against the corporation shall have arisen out of any transaction or operation

connected with or incidental to the business being transaction within the state.
6

The appellant also argues that the appellees' claims were barred by the statute
of limitations. As grounds for this assertion, the appellant claims that the
misrepresentations should have been discovered earlier than six years prior to
the filing of the lawsuit in December of 1976. Whether fraud should have been
discovered earlier is generally considered to be a question of fact. Upledger v.
Vilanor, Inc., 369 So.2d 427, 430 (Fla.App.1979). This is particularly true
where the conduct of the alleged fraudulent party was calculated to mislead,
deceive, or dissuade inquiry from the victim. Norris v. Hoggin, 136 U.S. 386,
10 S.Ct. 942, 34 L.Ed. 424 (1890). Contrary to the appellant's assertions, the
jury found that the appellees did not discover nor should have reasonably
discovered the fraudulent misrepresentations that underlie this litigation prior to
December 30, 1970. The record shows ample support for this finding by the
jury