A federal district court has ruled for First Florida Credit Union in an alleged breach of contract dispute involving an overdraft privilege program from John M. Floyd & Associates Inc.
According to the judgment, JM Floyd in Baytown, Texas, sued the $407 million First Florida in Jacksonville, Fla., for approximately $200,000. The contract at issue was for an original period of 24 months yet after First Florida made the 24th monthly payment to JM Floyd, it received notice from the firm that the contract had not yet expired and that additional payments were still due.
In the suit, JM Floyd alleged that the terms of the contract automatically renewed for an additional 24 months as the result of First Florida's 2007 merger with Seaboard Credit Union.
Jake Kiker, an attorney with Williams Gautier Litigation Group who represented First Florida, said the credit union fully performed under the contract, and there was no entitlement under the terms for the additional compensation being claimed by JM Floyd.
After several months of motion practice and discovery including depositions, the credit union and JM Floyd both moved for summary final judgment.
On March 14, 2011, the U.S. District Court, Middle District of Florida in Jacksonville ruled in favor of First Florida on all claims “making specific legal findings that the contract at issue was not ambiguous, that the interpretation being offered by JM Floyd was not reasonable, and that FFCU had fully performed and did not breach the contract,” Kiker said.
JM Floyd subsequently engaged special appellate counsel based in Pennsylvania and appealed the federal district court's entry of judgment in favor of First Florida to the U.S. Court of Appeals for the Eleventh Circuit.
On Oct. 3, 2011, the appeals court affirmed and upheld the federal district court's judgment in favor of First Florida, Kiker said.
The only outstanding claim that remains in the lawsuit is the court's ruling regarding the award of attorneys' fees and costs in favor of First Florida to be paid by JM Floyd under the terms of the contract, according to Kiker.
“FFCU was prepared, had kept and maintained good records,” Kiker said.
A comment from JM Floyd was not immediately available.
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