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Condor West Investments, LLC v. Cannabis Growth Industries, Inc.

Florida Court of Appeals, Fourth District

September 18, 2019

CONDOR WEST INVESTMENTS, LLC, Appellant,
v.
CANNABIS GROWTH INDUSTRIES, INC., THOMAS S. WALDRON, Trustee, THOMAS WALDRON, DEEP BLUE ENTERPRISES, LLC, NEW ALTERNATIVE CONSULTING, LLC, RINO SUPPLY COMPANY, INC., TCG ASSETS, INC., and MICHAEL CITRON, Appellees.

         Not final until disposition of timely filed motion for rehearing.

          Appeal from the Circuit Court for the Fifteenth Judicial Circuit, Palm Beach County; Meenu Sasser, Judge; L.T. Case No. 50-2016-CA-011374-XXXX-MB.

          Raymond M. Masciarella, II, of Reynolds and Reynolds, P.L., West Palm Beach, for appellant.

          Stanley T. Padgett of Padgett Law, P.A., Tampa, for appellee Michael Citron.

          Ciklin, J.

         Michael Citron, a defendant in a business dispute, was awarded a judgment on the pleadings and obtained a dismissal of the underlying litigation against him. The trial court based its decision on the cause of action not having accrued at the time suit was filed. We find the trial court erred, because the surviving third amended complaint contained a cause of action directed to Citron that was not addressed or otherwise disposed of.

         In 2016, the appellant and plaintiff below, Condor West Investments, LLC ("CWI"), sued the appellee, Michael Citron, and many other individuals and entities, related to a joint venture gone wrong. As part of the venture, multiple entities entered into a contract, and a promissory note was executed pursuant to the contract. The note provided that the "principal sum or the unpaid balance" was due at CWI's option "after default in the payment of the remaining principal due . . . on [the note's] Maturity Date . . . or after default in the performance of any of the covenants or conditions of the Agreement herewith within the time therein limited." The note provided for a maturity date of October 4, 2018.

         In one of numerous counts pled in its initial complaint, CWI alleged that the defendants "failed . . . to make payments when due pursuant to the Promissory Note" held by CWI. As an affirmative defense, Citron asserted that the note had not become due.

         In its third amended complaint, filed shortly before the note actually became due, CWI alleged the following:

11. The Plaintiff is entitled to relief against . . . Citron upon the following facts:
(a) Cannabis Growth Industries, Inc. and Thomas Waldron have breached the contract . . . by failing to make payment to the Plaintiff as required by the agreement.
(b)The Plaintiff hereby declares the full amount of the promissory note due and payable.

CWI no longer alleged, as it had in its initial complaint, that the defendants "failed . . . to make payments when due pursuant to the Promissory Note." Again, as an affirmative defense, Citron asserted that the note had not become due.

         Days after the note in fact became due, CWI moved for leave to file a supplemental pleading pursuant to Florida Rule of Civil Procedure 1.190(d), seeking to allege an additional cause of action to wit: that the note had matured, was due and owing, and had not been paid. The trial court granted the motion and deemed the supplemental complaint filed. Among other affirmative defenses, Citron ...


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