Florida/Georgia Personal Injury & Workers Compensation

...Plaintiff Had Reasonable Grounds for Insecurity to Request Adequate Assurances. The UCC allows a party to demand adequate assurance of cue performance of a contract when the party has "reasonable grounds for insecurity" with respect to the performance of the other party to the contract. See Fla. Stat. § 672.609(1). Specifically, Section 672.609(1) states: A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired....

...Gibbs Nathaniel (Can.) Ltd., 802 F.2d 1362, 1366 n. 10 (11th Cir.1986) (quoting identical provision adopted in Georgia). When dealing between merchants, as here, "commercial standards" determine whether a party has reasonable grounds for insecurity. See Fla. Stat. § 672.609(2). [12] "Under commercial standards and in accord with commercial practice, a ground for insecurity need *1230 not arise from or be directly related to the contract in question." Fla. Stat. § 672.609 cmt....

...Where a buyer falls behind on its account with the seller, as Defendants did here, even if the late payments involve separate and legally distinct contracts, the seller has grounds for reasonable insecurity of the buyer's due performance. See Fla. Stat. § 672.609 cmt....

...While Defendants concede that the May 9, 2008 letter was a request for adequate assurances ( see D.E. 79 —Hearing Transcript, p. 53), they question whether the April 17, 2008 letter was a request for adequate assurances because it failed to track the language of Section 672.609, Florida Statutes. The Court takes a different view. The April letter was written by a layperson, not by attorneys, and while it does not track the language contained in Section 672.609, there is no requirement that requests for assurances track the statute....

...ach of contract. Moreover, even if Defendants had claimed a breach, Plaintiff was entitled by law to suspend its own performance as of April 17, 2008 while it waited for Defendants to provide it with the requested adequate assurances. See Fla. Stat. § 672.609(1); see also Clem Perrin Marine Towing Inc., 730 F.2d at 191. [19] 4. Defendant Failed to Provide Adequate Assurances. Section 672.609 of the Florida Statutes allows a party who requests adequate assurances to treat the failure by the other party to provide the requested assurances as a repudiation of the contract, allowing the requesting party to sue for breach. See Fla. Stat. § 672.609. Section 672.609 also requires a response within a reasonable time, not to exceed thirty days. Fla. Stat. § 672.609(4) (emphasis added); see also Hitachi Zosen Clearing, Inc....

...Summary judgment is appropriate if there is no genuine issue of material fact. Fed. R. Civ. P. 56(a). III. Discussion 4 A.. Breach of Contract 1. Zois’s Breach Claiming that Zois breached the contract, Cafaro argues that Zois failed to respond to his request for adequate assurances. Section 672.609, Florida Statutes, states, “When reasonable grounds for insecurity arise with respect to the performance of either party the other may in writing demand adequate assurance of due performance.”' And the party demanding adequate assurance “may if commercially reasonable suspend any performance” “until he or she receives such assurance.” Fla. Stat. § 672.609 ; see Hosp....

...In order to assure that the Debtor would honor its obligations under the contracts, PBI wrote a letter dated December 21, 1989, (PBI'S Ex. 13) to the Debtor requesting that the Debtor provide adequate assurances of future performances pursuant to section 2-609 of the Uniform Commercial Code as adopted by section 672.609 of the Florida Statutes, such as posting a letter of credit, making cash payments in advance, or shipping on a COD basis....

...claim is allowed, the amount of the claim is proper and the claim should be allowed in the amount as filed. The transaction between the parties is obviously governed by the Article of Sales of the UCC, particularly 2-609, as adopted in this State by section 672.609, Florida Statutes (1992) which provides: RIGHT TO ADEQUATE ASSURANCE OF PERFORMANCE (1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired....

...Appellant seeks review of a declaratory judgment determining that appellees retain title to an automobile and appellant may not declare its financing contract breached. Appellant contends that its security interest has been impaired so as to constitute a breach of the agreement under section 672.609, Florida Statutes....

...One 1976 Buick Skylark, 453 F. Supp. 639 (D.Col. 1978). The potential for a forfeiture claim as to the vehicle, and appellant's knowledge that the vehicle was used in connection with a drug transaction, prompts appellant's concern for its security interest. Section 672.609, Florida Statutes, authorizes a demand for assurance of performance when grounds for insecurity arise. If a demand is made and adequate assurance is not forthcoming the aggrieved party may then treat the contract as breached by repudiation. See Central Oil Co. v. M/V Lamma-Forest, 821 F.2d 48 (1st Cir.1987); section 672.609(4), Florida Statutes....

...rmance in accordance with the statutory procedure. We do not address the question of what assurance might be sufficient in these circumstances, but we conclude that appellant may not ignore the statutory procedure. Appellant's failure to comply with section 672.609 precludes a declaration of breach....

...When a contract involves the sale of goods, the Uniform Commercial Code provides that a merchant has the right to demand adequate assurance of performance “[wjhen reasonable grounds for insecurity arise with respect to the performance of’ the other party. § 672.609(1), Fla. Stat. (2005). Once adequate assurance of performance is demanded, the other party to the transaction must provide adequate assurance within a reasonable time, not to exceed thirty days, or the contract is repudiated. § 672.609(4)....