3 W.D.C.P. (2d) 399,
1991 CarswellOnt 3779 Jaffe v. Dearing Sidney L. Jaffe and
Ruth Jaffe, Plaintiffs and Daniel S. Dearing, Defendant Daniel S. Dearing,
Plaintiff by Counterclaim and Sidney L. Jaffe and Ruth Jaffe, Defendants by
Counterclaim Sidney L. Jaffe, Ruth
Jaffe and Gabriel Alter, Plaintiffs and Daniel S. Dearing and Sun Bank of
Tallahassee, Defendants Ontario General
Division Judge: Austin J. Heard: October 7, 1991 Heard: October 11, 1991 Judgment: November 14, 1991 Docket: Toronto 5236/85, 10453/86 Related references: Additional reasons, 7 C.P.C. (3d) 225,
3 W.D.C.P. (2d) 161, 1992 CarswellOnt 444 (Ont. Gen. Div.); Additional reasons
(Further), 1992 CarswellOnt 3137 (Ont. Gen. Div.); Affirmed, 1995 CarswellOnt
2555 (Ont. C.A.) Counsel: None given Subject: Civil Practice and Procedure Barristers and solicitors. Civil practice and procedure. Austin J.: 1
In these two actions a client or clients claim damages from their lawyer
for negligence and breach of contract. They also claim the return of fees paid.
The lawyer counterclaims for fees unpaid. Summary 2
Sidney Jaffe was in prison in Florida. His wife Ruth asked Dearing to
get him out. In getting him out, Dearing arranged a scheme whereby money was
paid to certain people by way of "restitution." Jaffe claims
repayment of that money. Jaffe was then charged with fraud. He was released on
bail of $150,000. That money was seized by the State. Jaffe claims that amount
as well. He also demands the return of part of the $174,013.98 paid Dearing in
fees and disbursements. Dearing claims another $62,028.31 from both Mr. and
Mrs. Jaffe by way of fees and disbursements. Facts 3
Most of the events occurred in Florida and concern legal processes
there. Testimony was given by Canadian and American attorneys. It was apparent
from that testimony that there are material differences in language and that
the same words have different meanings in the two jurisdictions. These reasons
are written from an Ontario perspective. The amounts of money are expressed in
U.S. dollars. 4
Jaffe is now 67. Although born in New York City, by 1971 he had a home
in Toronto and at some stage he became a Canadian citizen. In the late 1970's
he was engaged in land development in Florida. A corporation in which he was
involved acquired a residential development. A number of people had bought
interests and were entitled in due course to what are called "warranty
deeds." For some reason "quit claim deeds" were provided
instead. 5
As a result, Jaffe was arrested in August 1980 and charged with 28
offences under the Florida Land Sales Act. To secure his release, bail was put
up in the form of a bond for $137,500. It was purchased from a bonding company. 6
Jaffe was released and returned to Canada. When the case was reached for
trial in May 1981, Jaffe did not return to Florida. Whether his non-return was
justifiable is not in issue in this proceeding. As is customary in the United
States, a term of his bond authorized the bonding company to pursue Jaffe, to
apprehend him, and to return him to the court. Overlooking the international
boundary and the extradition treaty between Canada and the United States, two
"bounty hunters" came to Toronto in September 1981, kidnapped Jaffe
and delivered him into custody in Florida. 7
In November 1981 Jaffe was convicted of 28 violations of the Land Sales
Act and of "failing to appear." In February 1982 he was sentenced to
five years in prison on each of these 29 charges. Although the sentences total
145 years, by virtue of concurrence they worked out to 35 years in prison. 8
There was some protest of the kidnapping and the apparent involvement of
the State of Florida in it. It was suggested by some that the sentences were
excessive in that the Act was regulatory, not criminal, the offences were
technical, these were the first charges ever laid under the Act, and five years
per offence was the maximum penalty. 9
The Jaffe family contacted their own lawyer here and either
independently or through their lawyer, the police, the Federal Departments of
Justice, and of External Affairs. The matter was raised through diplomatic
channels with the U.S. Departments of State and Justice. Protests were being
made or urged. Action was being suggested, demanded or followed on a number of fronts.
In the meantime, Jaffe remained in prison at the Avon Park Correctional
Institution at Avon Park, Florida. 10
Dearing is a lawyer in Tallahassee, Florida. He had worked with Fletcher
Baldwin, a professor of constitutional law at the University of Florida. The
Jaffes had been in contact with Baldwin and he referred Jaffe's daughter,
Robyn, to Dearing in July 1983. She told Dearing the story and asked him to go
to the Governor of the State and get a parole for her father. Dearing said he
assumed that she meant a pardon rather than parole. He also said that he did
not believe her story until he checked it out with Baldwin. 11
Mrs. Jaffe then called and asked him to undertake the representation of
her husband and Dearing agreed to do so. She suggested she pay him up front. He
refused. He proposed that he charge her $100 per hour regardless of the nature
of the work, that he bill her monthly for his time and expenses and that unless
there was some question about an account, she would pay it promptly on receipt
or shortly thereafter. Mrs. Jaffe discussed this proposal with her husband and
then agreed to it. 12
There were time constraints because Jaffe was ill. Dearing said that a
pardon was out of the question until the matter had been considered by the
Florida Parole Commission. He therefore set to work to get as early a date as
possible for a hearing with the Commission. He had an advantage in this regard
as he had acted for the chairman and for her department when she had been
superintendent of a Florida women's prison some ten or eleven years earlier. In
the result, a series of hearings of the Commission was held over the period
July 1982 to October 1983. Jaffe was released on October 11, 1983. 13
Early in those proceedings a question was raised as to whether there
were any "victims" of Jaffe's "crimes." Dearing was not
successful in persuading the Commission that no one had lost anything by reason
of Jaffe's conduct. This led to the question whether "restitution"
might be appropriate. Dearing concluded that an offer of restitution had to be
made. This was discussed and approved. 14
Approval in this context involved Mr. and Mrs. Jaffe, their family, and
a good many others. Jaffe himself had a law degree, acquired about 1980 in
California, although he had never practised. Mrs. Jaffe was consulted on every
step. Their son Harold, an attorney in Oakland, California, was involved.
Another son, Brandon, was a law student in Toronto. Jaffe's brother, Robert,
was an attorney in New Jersey. Mr. and Mrs. Jaffe had legal representation
through Sydney Fram, then of Goodman and Goodman in Toronto. The money for the
restitution plan was to be contributed by friends and channelled through John
Zeldin, Q.C., another lawyer in Toronto. Zeldin had to be consulted. In
addition, James M. Russ, an attorney in Orlando, was representing Jaffe on the
appeal from his convictions, and Lansing J. Roy, of Keystone, Florida, was
advising Jaffe on bankruptcy and civil property matters. 15
A variety of other legal proceedings had been or were being started.
These incuded habeas corpus applications by Jaffe and by the Canadian
government. Amicus curiae proceedings were brought by various groups to support
these efforts. Pressure was brought on the U.S. State and Justice Departments
to get them to take proceedings. Depending upon the nature of a decision, wider
and wider circles of consensus had to be reached. 16
Over the period August 1982 to March 1983 a number of aspects of the
restitution plan changed. For example, originally the money was in Toronto. In
the end it was in Tallahassee. A fundamental of the original plan was that
restitution would only be paid after Jaffe had been released. Whether or not
this condition was changed was in issue. 17
On March 2, 1983, Mrs. Jaffe and Dearing attended a hearing of the
Parole Commission. At the outset of the meeting, Jaffe's Presumptive Parole
Release Date (PPRD) was November 24, 1988. This date had been arrived at by the
application of both "objective" and "subjective" factors.
The former included such matters as the nature of the crimes. The objective
part was largely mechanical and subject to correction in the case of error. The
subjective aspects, however, were largely, if not entirely, beyond reconsideration. 18
At the hearing on March 2, 1983, two orders ("Commission
Actions") were made. One was based on a calculation error found by Jaffe.
He had discovered that the failure to appear had been "scored" as a
second degree felony when in fact it should have been scored as a third degree
felony. This resulted in an automatic change in his PPRD from November 24,
1988, to May 24, 1988. 19
The second order accepted the restitution plan and, as a consequence,
changed the PPRD from May 24, 1988, to May 24, 1983. The formal order was not
signed until March 10 and it was not in Dearing's hands until March 11, 1983.
With it came a letter setting May 4 as a date for further review and
consideration of the matter. 20
In the meantime, Dearing had, on March 3, 1982, mailed out the offer of
restitution to all of the 27 "victims." (One had bought two lots.)
The offer was unconditional; it was not made subject to Jaffe being released. 21
On March 16, 1983, Stephen L. Boyles, the State Attorney, who had prosecuted
Jaffe, wrote to the Parole Commission protesting its order. His position was
that the Commission could not change a release date on the basis of
restitution. Dearing received a copy of that letter on March 18. Boyles
followed up his protest with a petition for certiorari. Dearing received it
about April 11, 1983. The petition was based upon two grounds. The first was
that the Jaffe hearing had not been listed on the published agenda of the
Parole Commission for March 2, 1983. The second was that the Parole Commission
was limited to acting on "new information" and the restitution plan
was not "new information." 22
Notwithstanding Boyles' letter and certiorari, the restitution plan
proceeded. The money was in the hands of the bank. Dearing was required to
approve the documentation sent back by the "victims" and he did it as
it arrived. Upon his approval the money was sent out automatically by the bank.
The first cashier's cheques were dated March 18, 1983, and the last April 27,
1983. Most accepted the offer. A few did not. All of these latter had been
contacted by Boyles and urged not to accept. 23
Dearing kept the Parole Commission fully advised as to what was
happening on an almost daily basis. 24
The Parole Commission met again on May 4. First it found that the
"conditions required for mitigation," that is, the restitution, had
been met, that the PPRD should be made permanent, and the conditional PPRD of
May 24, 1983, be affirmed. It then declined to grant an Effective Parole Release
Date (EPRD) because of the outstanding certiorari. It concluded by establishing
a new PPRD of November 24, 1983. 25
Dearing testified that he had been confident that the May 24 release
date would be kept by the Parole Commission, notwithstanding Boyles' protest
and certiorari. His view was that Boyles had no standing. When the date was not
kept, Dearing petitioned for a review of the position taken by the Parole
Commission. On June 9, 1983, however, the Court held that the Attorney General
of Florida, who was represented on the hearing of the certiorari, did have
standing. The court also held that the failure to put the Jaffe hearing on the
agenda was "analogous to violations of the Government in the Sunshine
Law...a violation of which constitutes an irreparable public injury." The
Court also held that the restitution plan was not "new information"
and that the order of March 2 was therefore improper. That order was quashed. 26
It is not clear what became of Dearing's petition or review. In the
circumstances, it may well have been abandoned. 27
Although Russ had been retained to do the appeal from the convictions
and had prepared the appeal, Dearing was asked to argue it. This argument took
place on July 18, 1983. Judgment was reserved. The hearing gave those present
reason to believe the appeal would succeed. The same day Jaffe was served with
new charges prepared by Boyles and based on "organized fraud."
Although Jaffe remained in custody, his bail on the new charges was set at
$300,000. 28
The defence of these charges was committed to Dearing and to Ed
Leinster, an attorney in Orlando, Florida, with expertise in criminal matters.
They launched a variety of motions, including two by Dearing. These two motions
sought dismissal of the new charges on the basis of "prosecutorial
vindictiveness" and lack of jurisdiction (no connection on the face of the
information between Jaffe and Florida). These motions were argued at some
length on September 1, 1983. The matter was adjourned on the understanding that
Dearing would file a memorandum on certain points. 29
The following day, September 2, 1983, the Court of Appeal handed down
its decision. It held in effect that the 28 charges against Jaffe did not set
out any offence known to law, and if they did they had not been made out in the
evidence. Those charges were dismissed and the conviction set aside. The
conviction for failure to appear remained. 30
Jaffe was still in jail. He had been in custody of one kind or another
since September 1981. According to his calculations of "gain time,"
that is, the time to be credited to his remaining five-year sentence on one
basis or another, he would "max out," that is, he would be entitled
to demand his release with respect to the failure to appear conviction on
October 3, 1983. According to some State authorities he would not be entitled
to release on that charge until several months later. 31
A bail review (bond reduction hearing) on the new charges was requested
for September 30, 1983. Leinster was to do this, but at the last minute Mrs.
Jaffe asked Dearing to attend. He did, as a spectator, and at Jaffe's request
made a closing submission. The amount of the bond required to bring about
Jaffe's release on the new charges was lowered from $300,000 to $150,000. 32
Different ways of assuring the payment of $150,000 were discussed at the
hearing. One of the ways was through interests Jaffe said he had as a partner
in apartment buildings in Toronto. Following September 30, Jaffe remained in
prison while various means were explored to secure the money. 33
On October 5, 1983, a further hearing of the Parole Commission was held.
The Commission decided to release him on October 11. Dearing was very concerned
that further efforts would be made to detain Jaffe. To minimize that risk, he
urged the expediting of the arrangements for the bond. The real estate route
proved unavailable. Eventually, the money was provided by a friend, Gabriel
Alter, and Jaffe was released on October 11, 1983. He arrived home in Toronto
the same day. Dearing's Accounts 34
Dearing continued his efforts on behalf of Jaffe for some months.
Dearing had rendered accounts monthly as agreed, and Mrs. Jaffe paid them. None
was questioned. Sometimes payment was delayed and sometimes payments were split
over two months, but they were paid. From July 9, 1982, to July 26, 1983, the
accounts totalled $174,013.98. In July 1983, before he argued the appeal from
the convictions, Dearing was told by a distraught Mrs. Jaffe that she was no longer
able to pay him as before. She assured him, however, that her husband had
access to more funds and when he was back in Canada, Dearing's accounts would
be paid. 35
That did not happen. Once back in Canada, Jaffe became increasingly
critical of Dearing's performance, both past and present. By early November,
Jaffe was insisting that the restitution funds be recovered and that the
decision to reduce the bond requirement from $300,000 to $150,000 should have
been appealed. He also complained that Dearing had not conducted an evidentiary
hearing to back up his motions to dismiss the new fraud charges. He suggested
that an action be commenced against Boyles for his interference in the parole
process, that a civil rights complaint on Jaffe's behalf be strengthened, and
that Dearing join forces with Roy in prosecuting a civil action against one of
the other parties in the land transaction. 36
Late in November, Dearing moved to get off the record, but was refused.
He was still the trustee of the bond money interest. He renewed the motion
later on and succeeded. He remained trustee despite efforts to extricate
himself, until replaced by Alter with another attorney in April 1984. 37
In July 1983, Mrs. Jaffe had told Dearing he would get paid when her husband
returned to Canada. Shortly after Jaffe returned to Toronto, he said he would
pay when Dearing came up to visit him in November. Then the visit was switched
to February, and then to March. By April 1984, Jaffe's position seemed to be
that Dearing would get paid when he recovered the restitution money or the bond
money, or both. In May, Jaffe complained about Dearing's handling of the
$150,000 bond and about his failure to require an evidentiary hearing to
provide a basis for an attack on the new fraud charges. Jaffe suggested that
such evidence would also have helped to eliminate or reduce the bond
requirement. Jaffe also indicated that Dearing would be paid from the proceeds
of a civil rights action recently commenced in New York State. In July 1984,
Mrs. Jaffe wrote to Dearing asking him to help them to obtain justice by
recovering "the funds disbursed on the false parole, which moneys were put
forth on your recommendation and counsel, and recover the $150,000 cash sent by
Gabriel Alter to your bank, at your request." The situation was aggravated
by Dearing's receipt of a postcard from the Jaffes on holiday in Mexico. 38
Dearing replied to Mrs. Jaffe by indicating that he would commence
action for his fees immediately. The claim was commenced on August 2, 1984. It
was against both Mr. and Mrs. Jaffe. Dearing's request to have one of Jaffe's
lawyers in Florida accept service was ignored. The claim was sent to Toronto
for service. A sheriff's officer attempted service at the Jaffes' residence on many
occasions in September 1984, and spoke to Jaffe by intercom, but was unable to
effect service. The officer said Jaffe said his solicitor would contact the
sheriff's department for service. The solicitor did contact the sheriff's
department, but did not arrange for service. It was the opinion of the officer
that the defendants were blatantly evading service. 39
Personal service was eventually effected on Jaffe alone by a process
server on November 15, 1984. By letter dated November 31, 1984, Jaffe wrote to
the clerk of the court in Florida enclosing "a response to complaint"
in the matter and asking that it be filed. The "response" was what in
Ontario would be called a notice of motion. It was entitled "Motion to
Dismiss for Lack of Jurisdiction." The body of the document reads as
follows: COMES NOW the defendant, Sidney L. Jaffe, and prays this court to
dismiss this action on the grounds that there is no subject matter,
jurisdiction and/or personal jurisdiction of the defendant, and in supprt [sic]
thereof, does aver as follows: COUNT I AS GROUNDS FOR DISMISSAL 1) Plaintiff has no privity of contract with the defendant and was
not engaged by defendant. Plaintiff rendered his service, if any, to third
parties. As recited in White v. Exchange Corp. 167 So.2d 324 (3rd DCA, 1964). It is elementary that a person not party to nor in privy with a
contract does not have the right to sue for its breach. See Woodbury v. Tampa
Water Works Co. 57 Fla 249, 40 So. 556; Seabord Airline R. Co. v. Tampa
Southern R. Co., 97 Fla. 340, 1121 So. 477. Therefore as there is no contract and no privity between Plaintiff
and Defendant, the court lacks subject matter jurisdiction. COUNT II AS GROUNDS FOR DISMISSAL 2) Plaintiff has not obtained personal jurisdiction over defendant.
Defendant became aware of the instant action by delivery of a copy of the
summons to his place of residence. There has been no identification of the
party effectuating the service or proof of service and if said is being claimed
by plaintiff, defendant puts the plaintiff to his proof. WHEREFORE, your defendant prays that this court grant its prayer
and dismiss the complaint instituted apparently by Daniel S. Dearing and L.
Ralph Smith, Jr. in the Second Judicial Circuit Court in and for Leon County,
Florida. Respectfully submitted, "S. L. Jaffe" Sidney L. Jaffe Appearing Pro se 40
On December 17, 1984, before the Court had had time to deal with his
motion, Jaffe petitioned the Federal Court to remove the matter from the State
Court to the Federal Court. A filing fee of $60 and a bond fee of $500 are
payable on the filing of a removal petition. The cheques presented for such
fees were not honoured. The Federal Court accordingly remanded the matter back
to the State Court on January 9, 1985. By letter dated February 7, 1985, Jaffe
sent in to the Federal Court a notice of appeal from that order. Dearing moved
successfully to have the appeal dismissed. Jaffe then moved for
reconsideration. Dearing then moved in the State Court to dismiss Jaffe's original
motion of November 31, 1984. That hearing was held on April 23, 1985. No one
appeared on behalf of Jaffe. The Court dismissed Jaffe's motion. The text of
the order reads as follows: This cause is before the court on Defendant Sidney L. Jaffe's motion
to dismiss. Jaffe appears pro se. Count I of Jaffe's motion contests
jurisdiction for lack of privity of contract between the Plaintiff law firm and
Jaffe. Count II alleges failure to service of process. Defendants failed to
appear for the hearing (which had been noticed and renoticed) on their motion.
The court having reviewed the motion and heard Plaintiffs' counsel, and being
otherwise fully advised in the premises, it is ORDERED 1. That the motion to dismiss for lack of privity is DENIED. The
complaint alleges as operative fact that representation was effected by
agreement with both Defendants. For purposes of the motion, these facts are
taken as true. 2. The motion to dismiss for failure of service of process is
DENIED. There is in this record an affidavit showing personal service of
process on Jaffe at his home in Toronto. DONE and ORDERED in Chambers at Tallahassee, Leon County, Florida,
this 23rd day of April, 1985. 41
Dearing proceeded to trial on August 27, 1985. Although there was no equivalent
of our statement of defence, and although no one appeared on behalf of Jaffe,
Dearing filed an affidavit and called viva voce evidence, expert and otherwise,
to prove his claim. Judgment was given on September 25, 1985, for fees and
disbursements in the amount of $62,028.31 plus interest of $12,785.58, and
costs of $352.65. 42
The pre-judgment interest was said to have been calculated at the
Florida statutory rate of 12% on the increasing balance owing from the date of
the first unpaid account to the date of judgment. Dearing's claim for legal
costs of $7,680 incurred in getting judgment, plus $230.15 paid to effect
service, was refused. Jaffe's Claims 43
Jaffe makes three claims: return of the restitution money, return of the
$150,000 bond money, and reduction of Dearing's fees in an unspecified amount. (A) The Restitution Money 44
The claim for return of the restitution money is put on the basis that
Dearing's very clear instructions were that that money was only to be paid out
after Jaffe was released or after receiving an absolute guarantee that Jaffe
would be released. 45
Dearing agreed that that was the original position, but said that it had
been changed. He said that it had to be changed to accommodate the requirements
of the Parole Commission. 46
The plaintiffs' position is that: (1) They never agreed to any change. (2) The Parole Commission did not require any change. (3) There is a discrepancy between what the Parole Commission
decided and what appeared in its formal order. (4) The Parole Commission decided it would be satisfied if the
restitution funds could be made available. (5) Its order went further and required actual payment. (6) Dearing should have caught this discrepancy. (7) Having caught it, he should have done one of two things before
allowing any money to be paid out: (a) gone back to the Parole Commission for clarification; or (b) gone back to his clients for instructions as to whether to pay
out or get clarification. (8) When Boyles indicated opposition in mid-March and brought
certiorari proceedings shortly after, Dearing should have been warned that
Jaffe's release was in doubt and should have done something about the
restitution money. 47
As to point (1) above, the plaintiffs' main witness was Sydney Fram,
then with Goodman and Goodman of Toronto. Fram testified that in March 1983
they were quite euphoric because Dearing had done something Fram did not think
he could do. Fram said he could not remember any specific conversation with Dearing,
but he thought Dearing must have called him. Fram said he did not see the
orders of the Parole Commission until this action was under way and he did not
know Dearing was paying out money in March until later. 48
Dearing testified that he sent out the offer letters to the
"victims" on March 3, 1988, the day after the Parole Commission
meetings. The first attempt at a letter to the "victims" was drafted
as early as August 1982. Harold Jaffe did a draft in January 1983. That letter
contemplates a payout commencing March 15, 1983. It did not have any conditions
related to Jaffe's release. The final form of letter was a clear offer of
payment; it too had no conditions related to Jaffe's release. Dearing said that
it was approved by Harold Jaffe and by everyone else involved before it was
sent out. That evidence was not contradicted and I accept it. 49
As to points (2) to (7) above, the answer is in the proceedings of the
Parole Commission of March 2, 1983. Under the Government in the Sunshine Law
mentioned above, the Parole Commission is required to conduct all of its
proceedings in public. That is, all discussions, decisions and votes are taken
in the sight and hearing of the parties. A tape is made of every meeting and a
transcript is available. While this may produce a faithful record, it may leave
room for debate as to precisely what was decided. 50
In the transcript of the meeting of March 2, 1983, at p.49, in the
course of summing up the Chairman said at lines 3 to 15: CHAIRMAN: Well, that's what I say, it's hard to enunciate and, I
guess we need to get it on record. We need verification that the money is
there, verification that the offers have been made, verification that the
offers have been received and sufficient time has been allotted for the persons to respond
and be reimbursed. [emphasis added] SIMMONS: Now, if that does not happen, the mitigation -- CHAIRMAN: It is conditioned strictly on all these verifications.
And if there is no verification that all this has taken place, prior to the
date, then the mitigation is withdrawn. We have conditioned paroles in this
manner previously. And at p.52, lines 2 to 16: CHAIRMAN: We have four votes then, to condition a parole upon
what's been enunciated here. Now we need to make that very clear. If someone
can help me I'll be glad to receive help. It will be conditioned, the
mitigation will be applied and the parole will be conditioned upon Mr. Jaffe's
providing verification that the money is again in an escrow or trust account in
the amount necessary to reimburse all 27 people who suffered a loss in the land
sales deal. It will be further conditioned our receiving verification in the
form of a return receipt that these persons have been made an offer in writing; That upon their executing a quit claim deed they will be
reimbursed in the amount of their loss; and further, that these actions of
these verifications will be presented to the Commission by May 1st, 1983. 51
Dearing testified that he understood from this discussion that it would
not be sufficient to simply offer the money before Jaffe was released. He
pointed in particular to the words "and be reimbursed." He understood
that if the offer was made and accepted, the money had to be paid. Accordingly,
he sent the letters the next day and when the formal order became available on
March 11 he saw no discrepancy in it. The relevant parts of the order read as
follows: A. The Commission changes your presumptive parole release date as
follows: 1. Reduce Presumptive Parole Release Date by 60 month(s). Reason
(source) Mitigation of Established Presumptive Parole Release Date of sixty
(60) months is applied and a new Presumptive Parole Release Date of May 24,
1983, is established conditioned upon receipt from Mr. Jaffe of verification that
the money is again in an escrow or trust account in a Florida bank in the
amount necessary to reimburse all twenty-seven (27) people who suffered a loss
as a result of the offenses for which Mr. Jaffe was convicted. The new
presumptive parole release date is further conditioned upon the Commission
receiving: 1. Verification in the form of return receipts from the U. S.
Postal Service and a true copy of each letter of offer establishing that each
of the twenty-seven (27) people aforesaid has received an offer in writing that
upon execution of a Quit Claim Deed to the property involved in each offense
said person will be reimbursed in the amount of his or her loss. 2. Acceptable proof in writing that each of the aforesaid persons
has (a) received the required reimbursement for his or her loss or (b) has
declined in writing to accept the offer of reimbursement, or (c) has received
the required offer of reimbursement and has failed to respond thereto as
certified in writing by the attorney representing Mr. Jaffe. The new presumptive parole release date is further conditioned
upon acceptable verification that the foregoing conditions have been met being
presented to the Commission on or before May 1, 1983. Should the foregoing conditions not be fulfilled in their
entirety, then the new Presumptive Parole Release Date shall be vacated and
held for naught (mitigation of sixty (60) months removed), and the Presumptive
Parole Release Date shall be re-established to be May 24, 1988. [emphasis added] 52
It should be noted here that it was argued that by virtue of the
Government in the Sunshine Law, in the event of a difference between a decision
at a meeting and the formal order, the former prevails. In the circumstances, I
make no finding in this regard. 53 Mrs. Jaffe was at the meeting. She said
that she understood that the money had to be in the bank before her husband
would be released. She said Dearing told her he was going to send out the offers.
She said at some point she heard that Boyles was challenging the parole but she
did not understand that that would cause any problem until she attended the
parole committee meeting on May 4. Mrs. Jaffe said that she became aware some
time in April 1983 that the restitution money was being paid out and that she
was surprised. She said she spoke to her husband and told him that that was not
what was supposed to happen, that that was not what had been decided at the
meeting on March 2. She said her husband told her that there was no problem,
that he had read the order, that that was what it provided, and that he would
be released. 54
Mrs. Jaffe said that she did not remember whether she had spoken to
Dearing about the money going out. She remembered that at the May 4 Parole
Commission meeting Dearing told the Commission that most of the
"victims" had accepted and the money had been sent out. 55
Jeffrey Smith, of the Canadian Consulate in Atlanta, was also present at
the March 2, 1983, meeting of the Parole Commission. He did not testify at the
trial. 56 Fram said he was aware within a couple of
days of April 13 that the money was going out. He raised no complaint. He said
he only became concerned when he heard Boyles had filed some motion. Fram's
concern was not that the money was being paid out improperly, but that Jaffe's
release was not as certain as once thought. There is no suggestion that Dearing
was ever told to stop the money. 57
Dearing testified that by March 2, 1983, everybody knew that the money
would have to go out. He also testified that the draft letter to
"victims" was an unconditional offer and everybody had seen and
approved the draft letter. He was not cross-examined on those statements. They
are consistent with the fact that until this action was brought, no one ever
complained to him that the money had gone out, or asked him to stop it. The
closest thing to a complaint was Jaffe saying, in the late fall of 1983, that
Dearing would get paid when he got the restitution money back. 58
I find that Mr. and Mrs. Jaffe knew by March 2, or within a day or two
thereafter, that the offers were unconditional and that when they were accepted
the money would have to be paid. 59
When Boyles protested, Dearing thought he would be disregarded as he had
no status. Dearing's opinion of the certiorari was the same. What he did not
foresee was that the Attorney General of Florida would intervene and that the
court would conclude that the Attorney General had status. Dearing said that he
did not foresee that Boyles would succeed. If this was in error, it was an
error in foresight. No one, expert or otherwise, suggested that it amounted to
negligence. 60
Richard A. Belz, executive director of Florida Institutional Legal
Services, Inc. from 1979 to the present, testified that Dearing breached a duty
to get instructions when Boyles protested. This opinion was based upon Belz's
view that there was a discrepancy between the Parole Commission's decision and
its formal order. In my view, there is no such discrepancy. Belz's opinion was
also given without knowing the text of the offer or that it had been approved
by all. 61
Antonio Fontana was called as a witness. At the hearings of the Parole
Commission in 1982 and 1983, he was the member of the Commission most
sympathetic to Jaffe. Fontana is now the Chairman of the Commission. He
testified that his intention was that the "victims" be paid before
Jaffe was released. Even after the 28 convictions were set aside, he did not
intend to release Jaffe until the payments had been made. The motion to release
Jaffe was carried by a vote of four to three. 62
I therefore conclude that Dearing was not negligent or in breach of his
duty in sending out the letters on March 3, 1983, or in failing to seek either
clarification or instructions. Nor was he negligent or in breach of his duty in
failing to stop the payments or failing to get instructions when Boyles
protested and applied for certiorari. Once the letters were sent, the die was
cast. Even if sending out the letters was negligent, and I find it was not, no
damage was suffered. If Jaffe was ever to get out of prison, restitution had to
be paid. Dearing's actions consistently hastened the day of that release. 63
Although the point was never pleaded or argued, the question of
ownership of the restitution funds should be discussed. From the outset,
Dearing was told by the Jaffes, by Fram, and possibly by others, that the
Jaffes could not afford to pay the restitution funds themselves. Dearing and
Fram were led to believe that the money had been collected from a group of
friends. Jaffe wrote in the same vein to the Chairman of the Parole Commission.
Dearing relied on this information and used it in dealing with the courts and
with the Parole Commission. 64
Yet this action is brought in names of Mr. and Mrs. Jaffe. At trial Mrs.
Jaffe said that her son had said to her that Mr. Jaffe had invested the funds
for the children and that she should use them. She described them as "the
funds of my children." Mr. Jaffe said that "15 or 20 years ago I had
set up investment funds. Those were to be for the kids. Harold said, 'Take
it'." 65
None of the Jaffe children was called to testify. Not a scrap of paper
was tendered to establish the source of the funds. 66
Fram said that Mrs. Jaffe told him at the time that the money came from
friends. In order to send it to Florida and to get extensions of the time, he
had to get instructions from Zeldin and Zeldin had to approve the arrangements
in Florida. At trial Fram said that then he believed that the money came from
Zeldin and friends, but that now he was not so sure. 67
The statement of claim in this action does not assert any interest of
the plaintiffs in the restitution funds. Dearing was not made aware of any
interest being claimed by them personally until the discoveries in this action. 68
On all of the evidence, I am not prepared to find that the plaintiffs
ever had or now have any proprietary interest in the funds put up for the
purpose of making restitution. 69
I am unable to determine the precise amount in issue in this regard. The
amount raised was $156,865. It was sent to Florida about October 15, 1982.
There was evidence that $68,446 was paid to "victims." An additional
$28,882 in cheques was written, but whether they were cashed is not clear. An
additional $57,445 was at one time available for payment to the
"victims." The money earned interest while in Florida and presumably
while on deposit in a bank in Toronto. The amount sent back from Florida to
Toronto on July 29, 1983, was $47,551.50. (B) The Bond Money 70
The plaintiffs also claim against Dearing with respect to the bond
proceedings. The statement of claim asked for $250,000 damages and $500,000
punitive damages. 71
The statement of claim asserts first that Dearing was negligent in
failing to require the State to hold a "Probable Cause Hearing"
within 72 hours of the laying of the new fraud charges. As Jaffe was already in
custody at the time, this would appear to have no relationship whatever to the
eventual fixing of bail at $150,000. In any event, this claim was not pressed
as I understood the evidence and the argument. 72
The statement of claim goes on to complain that Dearing failed to advise
Jaffe of his right to an evidentiary hearing and to demand such a hearing so as
to require the prosecution to establish good faith in laying the new charges. 73
It was apparent from the flow of written and oral instructions from
Jaffe to Dearing that the former was well aware of his rights in this regard.
Dearing's job and his objective were to get Jaffe out of prison. Dearing was
very concerned with Jaffe's mental condition, and in particular the stress he
was under. Dearing was therefore prepared to take steps which would hasten
Jaffe's release. He was not prepared to take measures such as evidentiary
hearings which would take weeks or months. Dearing made his thinking as clear
as possible to Jaffe. If he did not like it, Jaffe had Leinster and others
available to do his bidding. 74
Dearing's motions to dismiss, based upon lack of jurisdiction and
prosecutorial vindictiveness, could be argued from the language of the charges
and from the material already before the court. When, eventually, the material
was filed by Leinster for evidentiary hearings, it included pages of witnesses.
The witnesses were located all over the United States. Dearing's opinion was
that it was not in Jaffe's best interests to pursue that course while Jaffe
remained in prison. Dearing also testified that it could not have been done,
"even if we had had a bank at our disposal." 75
Belz provided a written opinion that "a prudent criminal attorney,
acting reasonably, would have proceeded with the evidentiary hearing in
question," and that "Subject to court availability, the evidentiary
hearing could have been conducted quickly." 76
I am unable to accept that opinion for a number of reasons. In the first
place, Dearing made it very clear to Jaffe and to this court that he was not a
criminal attorney. He had some experience in that field, but he did not hold
himself out as a criminal lawyer or as having any expertise in that field. The
only evidence as to his expertise was that it lay in the anti-trust field. 77
In the second place, as was apparent from the list of witnesses produced
by Leinster, the hearing could not have been conducted quickly. It would have
taken weeks or months. 78
In the third place, Belz was not asked to consider the mental state of
Jaffe nor to weigh the merits of a long evidentiary exercise in that context.
It must be remembered that Dearing was hired to get Jaffe out, not to conduct
evidentiary hearings. 79
Nor was Belz asked to consider the cost of evidentiary hearings. Dearing
did and he was not being paid. 80
In all of the circumstances, I cannot find that Dearing was negligent or
in breach of his contract in not conducting evidentiary hearings. He exercised
his judgment and, in my view, did so correctly. The fact that Jaffe demanded
otherwise is not surprising. Clients are frequently wrong, particulary in
circumstances such as these. 81
The Jaffes go on in their statement of claim to state that Dearing
breached his contract by failing to advise them in a number of respects related
to the bail review hearing of September 30, 1983. As I understood the
plaintiffs' evidence and argument at trial, none of these matters is being
pursued. 82
Leinster represented them at the hearing. They asked Dearing to attend
and he did. At the hearing, Jaffe asked Dearing to make a statement and he complied.
I did not interpret any of the evidence at trial as complaining of Dearing's
attendance or compliance. If the Jaffes suffered in some fashion, there is no
reason to believe that that could not have been remedied, then, or later, by
action on the part of Leinster or some other attorney. 83
Jaffe says he instructed Dearing to appeal from the order fixing bail at
$150,000 and that Dearing declined. Dearing did in fact advise against it.
Jaffe appears to have accepted Dearing's advice at the time. If Jaffe had
wished to appeal, he could have done so through Leinster or someone else. 84
Jaffe complains that Dearing refused to raise $150,000 by mortgaging
Jaffe's apartment holdings. Those holdings were said to be partnership
interests in apartments in Toronto. On the evidence, Dearing had no
instructions whatever in this regard. The responsibility was Jaffe's and he was
either unable to arrange it at all or unable to arrange it in time to secure
his release by October 11. In the result, Jaffe's friend, Gabriel Alter, put up
$150,000. This was sent to the bank in Tallahassee and the bank issued a letter
of credit in favour of the Governor of Florida to secure the appearance of
Jaffe at his trial on the new fraud charges. In the event of his non-appearance,
the court would order forfeiture. If that occurred, the bank agreed to fund the
letter of credit. In the meantime, the $150,000 was to be used to purchase a
30-day deposit certificate. This would earn interest and, as a trustee, Dearing
would be responsible for sending the interest to Alter. 85
Alter's money arrived in Florida during the night of October 10-11,
1983, and Dearing was able to effect Jaffe's release immediately. 86
I am unable to find that Dearing breached his duty in any manner in
securing that release. 87
Early in 1984, new tax provisions gave rise to the question whether
Dearing would be responsible for deducting tax from the interest being earned
by the $150,000. Dearing wrote to Jaffe for instructions and directions. None
were forthcoming. Dearing then wrote to Zeldin. Zeldin responded and a new
trustee was appointed in Dearing's place. 88
Jaffe did not appear at the trial of the new fraud charges. As a result
the $150,000 was forfeit on June 12, 1985. In their statement of claim, the
Jaffes say that Dearing breached his duty in arranging bail in the manner he
did. How he should have arranged it was not specified in the statement of
claim, nor was any further light thrown on the subject at trial. 89
In this action as originally brought, Alter was a plaintiff and the bank
was a defendant. The action was dismissed as against the bank on December 22,
1988, and Alter discontinued his action as a plaintiff on July 27, 1989. 90
Assuming, without so finding, that Jaffe suffered the loss of $150,000,
clearly the cause of the loss was his failure to appear at trial. Jaffe pleaded
at length in his statement of claim that his non-appearance was as a result of
the suggestions of the Canadian Government, or of the Crown Attorney in
Toronto. That Government had launched habeas corpus proceedings in Florida. It
is pleaded by Jaffe that if he were to willingly return to Florida, the issues
raised in the habeas corpus proceedings would have been rendered moot. 91
I can find no causal connection whatever between the loss of the
$150,000 and anything done or not done by Dearing. In the event this matter
goes further, however, I should deal with what Jaffe put forward as the
reasons. The plaintiffs, in putting in their case, never mentioned the subject
at all. Dearing called Axel Kleiboemer, Washington counsel for the Canadian
Government. Kleiboemer testified that he had attended a meeting with Jaffe in
Ottawa in the fall of 1983. Also in attendance were various officials of the
Canadian Government, as well as Baldwin from the University of Florida.
Kleiboemer said that it had been anticipated that the question of returning
would arise and that he would be the one to respond. He said the question did
arise and he told Jaffe that from the perspective of the Canadian Government's
habeas corpus proceeding the best thing would be for Jaffe to sit in jail in
Florida. Kleiboemer said he had told Jaffe he would have to make his own
decision, but the Canadian Government was not in a position to tell him to
disobey a lawful order of a Florida court. As I understood Kleiboemer's
testimony, his view was that a habeas corpus application was less likely to
succeed if there was no corpus. 92
Although Baldwin was at the Ottawa meeting in the fall of 1983, he was
not questioned on the advice given to Jaffe about returning to Florida. 93
The plaintiffs called Ms. Jennie Hatfield-Lyon in reply. Now a
practising lawyer in Toronto and a lecturer in international law, in the fall
of 1983 she was an articling student and an executive of the International Law
Association. Ms. Hatfield-Lyon was at the meeting in Ottawa in the fall of
1983. She confirmed what Kleiboemer had testified he and Douglas Rutherford, of
the Department of Justice, had said to Jaffe. Her understanding, however, based
upon what she said she heard and saw in the way of gestures and facial
expressions, was that Jaffe should not return. The reasoning, she said, was
that if he returned he could be arrested, he would then be lawfully in custody,
and the kidnapping could be ignored. 94
What is most extraordinary about this question is that Jaffe himself
never said a word on the subject, either in chief or in reply. In those
circumstances, I am not prepared to find that his failure to return was at the
instance, request or suggestion of the Canadian Government. Nor is there any
evidence to support the pleading that he remained in Ontario to be available
for the prosecution here of his kidnappers. 95
In the final analysis, it does not matter whether or not he received any
such advice. The decision was his to make and he decided not to return. It was
that decision alone which brought about the forfeiture of the $150,000. 96
I find, therefore, that no part of the plaintiffs' claims with respect
to the restitution money or the bond money has been substantiated. Dearing's Evidence 97
A comment should be made about Dearing's evidence. The plaintiffs
appeared through senior and junior counsel and called five witnesses, including
themselves. The defendant appeared in person and called six witnesses,
including himself. All of the defence witnesses were from out of the country
and in the interests of efficiency were called out of order and in such a
manner as to interrupt Dearing's own testimony. 98
Dearing gave his own evidence-in-chief in narrative form. When he
finished and I invited counsel for the plaintiffs to cross-examine, counsel
immediately, and quite properly, noted that Dearing had said nothing whatever about
his own claim. It was agreed that in the interests of time, counsel for the
plaintiffs would cross-examine as far as possible, and then Dearing would
recommence his own examination-in-chief. The cross-examination continued until
the end of the day. At the outset of the following day, two other witnesses
were called. When they finished, Dearing began again in chief, very briefly, to
introduce a large book of documents, exhibit 15. He was interrupted by two more
witnesses and then began in chief again. 99
The book of documents and his evidence made it apparent that he was in
effect starting from the beginning again, but this time was putting in a large
number of documents, some of which had already been put in by the plaintiffs.
Dearing was under the impression that virtually every piece of paper had to go
into evidence. I explained to him that this was not required. 100
Counsel for the plaintiffs objected to Dearing starting all over again.
Leaving aside the question of the documents, I decided to permit Dearing to
"start over again" because it seemed to me that there was no other
way I would be able to understand the evidence. Nor did I see how the
plaintiffs had been or could be prejudiced in any way. On the contrary, if
there were contradictions between Dearing's renditions, they would provide
fertile ground for cross-examination. 101
In the result, all of exhibit 15 was admitted for convenience, but
Dearing only referred to some of the documents in it. Most of those referred to
were not included elsewhere. He proceeded in a chronological manner and by his
testimony wove his documents into those received in evidence earlier. In the
result, I saw no prejudice to the plaintiffs. Dearing's Claims 102
Dearing counterclaims in the first of the above-styled actions against
Jaffe on the Florida judgment and, in the alternative, against both Mr. and
Mrs. Jaffe for his fees and disbursements. Dearing's Florida judgment for fees
is against Jaffe only; Mrs. Jaffe was not served. 103
Dearing proved the accuracy of his accounts through his own evidence.
The accounts were taken from his own docket entries, those of his partner
Smith, and of various law clerks. The dockets had time entries on them.
Dearing's and Smith's time was charged at $100 per hour and the clerks at about
$25 an hour. These were normal or low for Dearing and Smith at the time, but
$100 per hour was the rate for which he had contracted. No issue was taken with
the hours or hourly rates or with the accuracy of the accounts. The only issue
was with respect to value to the client. 104
Dearing testified that during most of the time he worked for the Jaffes
he did no other work. Having regard to the number of aspects of what became
known as l'affaire Jaffe, in which Dearing was involved or to which he had to
give his attention, that is not surprising. Although I find the accounts
accurate as far as they go, they understate the work done. An example is the
entry for October 11, 1983. That entry reads as follows: Various matters including appearance at Circuit Court in Deland;
to Avon Park; etc.; various telephone conferences; drafting papers. 105
In fact, on that day, Dearing attended at the bank in Tallahassee at
7:00 a.m. to deal with the bond money which had arrived overnight. He then
chartered a plane and flew to Deland. There he attended on the judge to
establish the satisfaction of the terms stipulated by the bond and got the
judge to sign the papers necessary to secure Jaffe's release. Then he flew to
Avon Park to get Jaffe released from prison. Then he flew Jaffe to Tampa
airport, gave him $100 spending money and put him on a plane to Toronto. 106
I had a unique opportunity to judge Dearing's abilities as a lawyer.
Presented in evidence was a wealth of material prepared by him, pleadings,
motions, affidavits, letters and accounts. In evidence as well were letters to
him from a variety of persons. In addition, there were transcripts of five
proceedings in which he had participated to one degree or another. Finally, I
was able for five days to observe his conduct as counsel and as a witness. I
have had the opportunity to see some of the best counsel in Canada in action. I
would have no hesitation in ranking Dearing amongst them. 107
Dearing called John R. Baronek as an expert witness. No issue was taken
with his qualifications. Baronek began the practice of law in Florida in 1965.
He did trial and appellate work for ten years. He then spent five years as a
trial judge and another five years as an appellate judge. On retiring from the
bench, he resumed practice. Most of his time is spent doing counsel work,
primarily in complex commercial litigation. He has had extensive experience
with the Rules of Practice and with fees. He represented the Florida bar with
respect to fees before the Supreme Court of the United States. In his opinion,
for the work done, Dearing's fees were unreasonably low. Making the necessary
adjustments for time, exchange rates and localities, I arrived at the same
conclusion. 108
Dearing's original agreement was with Mrs. Jaffe. The agreement was that
she would pay his accounts. Mrs. Jaffe testified, but never suggested that that
agreement was changed in any material way. Nor did Mr. Jaffe testify as to any
material change. Dearing testified that the only change made was in July 1983.
He agreed to wait for his money until Jaffe's release. No change was made as to
the liability of Mrs. Jaffe. 109
There were nineteen monthly statements. All but the last four were
addressed to Mrs. Jaffe. The change to Mr. Jaffe's name was not explained. The
first twelve were paid by her. No reason was put forward why she should not be
responsible for all of the accounts. 110
As to Mr. Jaffe, there is no doubt whatever that all of the services
rendered were on his behalf and for his benefit. Mrs. Jaffe dealt with Dearing
because Jaffe himself was not in a position to do so. To that extent, she may
be regarded as his agent. I see no reason why Jaffe should not also be held
liable to Dearing for payment of the fees and disbursements. Certainly, during
October, November and possibly December 1983, Jaffe represented to Dearing that
he would pay his accounts. 111
I have no difficulty in finding that Dearing proved his claim for fees
and disbursements as against both Mr. and Mrs. Dearing. He is therefore
entitled to judgment in the amount of $62,028.31 against both Mr. and Mrs.
Jaffe. 112
In Ontario, as in Florida, Dearing is entitled to interest from the date
the cause of action arose: Courts of Justice Act, s.138 (1). While the
pre-judgment rates in Ontario have varied from as low as 9% to as high as 15%
in recent years, a fair average would be 12%. Dearing is entitled to interest
on the accounts from the dates of the accounts in question to date. This would
yield a figure of $12,785.58 as at September 25, 1985. The aggregate sum of
$74,813.89 has been owing since that date, to the knowledge of the plaintiffs.
In the circumstances I see no reason why interest should not run at 12% on that
aggregate sum from September 25, 1985, to the present date. 113
Post judgment interest rates also vary in Ontario. In the circumstances
I see no reason why I should not exercise the jurisdiction the court has under
the Courts of Justice Act, s.140 (1) (b), to provide that post-judgment
interest will also run at 12%. I so order. 114
While it may be academic, I should also determine whether Dearing is
entitled to succeed on the Florida judgment. 115
Although Ontario, like Florida, is prepared to assume jurisdiction over
cases in which personal service has been effected ex juris, in accordance with
Ontario Rules, it is not prepared to recognize judgments of foreign courts
granted on the same basis. Accordingly, the personal service on Jaffe in
Toronto of the Florida claim provides no basis for the recognition by this
court of the Florida judgment. 116
There appears to be some doubt as to whether the courts of Ontario will
recognize a foreign judgment if the defendant has, as in the present case, made
some use of the process of that foreign court to attempt to have the action
dismissed as against him: Re McCain Foods Ltd. and Agricultural Publishing Co.
Ltd. et al. (1979), 26 O.R. (2d) 758 at 769 (C.A.). 117
As I understand Dearing's position, it was that the Florida judgment
should be recognized here because Jaffe had attorned to that jurisdiction. That
argument was based upon the language of Jaffe's motion to dismiss Dearing's
claim. Specifically, although the notice of motion was entitled "A Motion to
Dismiss for Lack of Jurisdiction," the first count that "plaintiff
has no privity of contract with the defendant and was not engaged by the
defendant" is an attack on the merits of the claim, not on the
jurisdiction of the court. In the same manner, Jaffe could have taken the
position that the terms were not as pleaded or that all money due had been paid
or that he had a counterclaim which exceeded the amount of the claim. All of
those defences, like lack of privity, would have gone to the merits of the claim,
not to the jurisdiction of the court. 118
I do not accept Dearing's argument on this point. The difficulty, I
believe, is caused because privity of contract is, or could have been, in issue
at two different levels in the Florida proceedings. Although there was no
evidence as to the bases upon which Florida would assume competence to try the
case, I expect that as in Ontario (rule 17.02 (f)) the making of a contract
within the jurisdiction would be one of those bases. Putting it another way, a Florida
court would be prepared to try a case against a foreigner where the claim was
based upon a contract said to have been made with that foreigner in Florida. If
the making of the contract was the only link with Florida, and if on a
preliminary motion it was determined that the contract had not been made in
Florida, then the Florida court would decline to proceed with the case upon the
ground that it had no jursdiction. Subject to appeals on that point, that would
be the end of the matter. 119
Assuming for the purposes of argument that the preliminary motion
failed, and that the Florida court held that the contract had been made within
Florida, the court would then proceed. When the case got to trial, unless it
had been admitted in the meantime, the plaintiff would have to prove that he
had made a contract in Florida with Jaffe. If the plaintiff failed to do so,
his claim would be dismissed as against Jaffe on its merits. 120
In the first of these cases, the Florida court declined jurisdiction or found
it had no jurisdiction because the contract was not made in Florida. In the
second, the Florida court dismissed the claim because it found there was no
contract. 121
Dearing's argument is that what happened here was of the nature of the
second of these, a disposition on the merits. In my view, it was not; it was
simply a ruling by the Florida court that it had jurisdiction to hear the case.
That decision was not founded on the merits of the claim, but upon Dearing's
allegation in his claim that the contract was made in Florida and was breached
by Jaffe in Florida. 122
The order of the Florida court said, "For purposes of the motion,
these facts are taken as true." That was not a finding on the merits. It
was simply a finding, based upon an uncontradicted allegation, that for
purposes of jurisdiction to hear the case the Florida Court was qualified. 123
Jaffe could still have defended. Evidence could have been led at the
hearing of the claim to establish that Dearing had a contract with Mrs. Jaffe,
but not with Mr. Jaffe. Then and only then would the court have been required
to deal with the merits. 124
In my view, therefore, Jaffe's attack was on jurisdiction. This is what
Jaffe was referring to in his notice of motion, when he said, "There is no
subject matter, jurisdiction." (The comma is a typographical error and
should not be there.) No finding was made as to the merits of the claim. 125
Although the question is not entirely clear, the predominant view
appears to be that an attack on jurisdiction only does not constitute
attornment to the foreign court. Accordingly, there is no basis upon which this
court can recognize or give effect to the Florida judgment. 126
Dearing's claim on the judgment is dismissed. His claim for fees and
disbursements was fully proved. No reason for reducing his claim has been
established. It is therefore allowed in full. 127
In summary, the claims of the Jaffes are dismissed. Subject to what is
said below, Dearing's claim is allowed in the sum of $74,813.89, together with
interest at 12% from September 25, 1985, to the present day, plus interest at
12% from today on the total of $74,813.89 plus interest to today. 128
Interest and costs were not addressed in argument. I may be spoken to on
either or both by letter. Dearing appeared through counsel until January 1991,
and thereafter in person. His entitlement to costs in those circumstances
should also be addressed. |