Rescission -
[1]
Elements and Case Citations
(1) The character or relationship of the parties;
(2) The making of the contract;
(3) The existence of fraud, mutual mistake, false
representation, impossibility of performance, or other ground for rescission or cancellation;
(4) Plaintiff has rescinded the contract and notified defendant of such rescission;
(5) If the plaintiff has received benefits from the
contract, the plaintiff should further allege an offer to restore those benefits to the defendant, if restoration is possible; and
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Florida State Courts
Supreme Court: E.F. Hutton & Co. v. Rousseff, 537 So. 2d 978, 980 (Fla. 1989)
Second District: Saenz v. Rigau & Rigau, P.A., 549 So. 2d 682 (Fla. 2d DCA 1989)
Fourth District: Billian v. Mobil Corp., 710 So. 2d 984, 991 (Fla. 4th DCA 1998)
Florida Federal Courts
Eleventh Circuit: Rousseff v. E.F. Hutton Co., 867 F.2d 1281, 1285 (11th
Cir. 1989)
Southern District: Capital Factors, Inc. v. Heller Financial, Inc., 712 F.
Supp. 908, 915 (S.D. Fla. 1989)
Florida Statutes
§ 672.608, Fla. Stat.
[2] Defenses to Claim
for Rescission
(1) Fla. R. Civ. P. 1.110(d) (pleading affirmative defenses), and other
standard defenses. See § 56.
(2) Statute of Limitations: § 95.11(3)(l), Fla. Stat. (four years).
(3) Courts should not allow claims for rescission when plaintiff may pursue
action at law for breach of warranty or contract. See Central Florida Antenna Serv., Inc. v. A.M. Crabtree, 503 So. 2d 1351, 1352 (Fla. 5th
DCA 1987).
(4) Rescission is available only for fraud, accident or mistake. See
Royal v. Parado, 462 So. 2d 849, 855 (Fla. 1st DCA 1985); but see Hibiscus Assoc., Ltd., v. Bd. of Trustees, 50 F.3d 908, 916 (11th Cir.
1995) (Florida law also allows rescission for breach of dependant covenant).
(5) Rescission is not available when the parties cannot return to positions
occupied prior to execution of contract. See Paul Revere Life Ins. Co. v. Dietz, 785 F. Supp. 970, 972 (M.D. Fla. 1992).
