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February 2001 Reporter

COLUMNS  
     
  Florida Caselaw Update 
Gary K. Hunter, Jr. & D. Kent Safriet 

      

 

     Supreme Court refers issue to the Rules of Judicial Administration Committee: Should the Court require written final decisions with detailed findings of fact in local land use quasi-judicial determinations?  Broward Co. v. G.B.V. International, LTD., 787 So.2d 838 (Fla. 2001).

       This case was on review from the Fourth DCA to determine whether the order of the District Court reversing the circuit court and remanding a land use decision by  Broward County for entry of an order directing the County Commission to approve a proposed plat amendment was appropriate.  At issue was a proposed plat amendment for a parcel in Broward County.  The Supreme Court reversed the Fourth DCA for failure to properly apply the Tier II certiorari review by “conducting its own de novo assessment of the plat application.”  The Court then remanded the matter to the circuit court for proper application of certiorari review, that is, a review of the record to determine whether the local government’s decision was supported by competent substantial evidence. 

     In reaching this conclusion, the Supreme Court did note the minimal record from the County Commission for purposes of facilitating certiorari review of that decision.  Citing to Board of County Commissioners v. Snyder, 627 So.2d 469 (Fla. 1993), the Court further observed that a written decision with findings was a recommended course of action but not a prerequisite.  Apparently recognizing the resulting dilemma with certiorari review in the absence of such a record, the Supreme Court referred the following question to the Rules of Judicial Administration Committee of the Florida Bar: “[w]hether the Court should implement a rule requiring written final decisions with detailed findings of fact in local land use actions that are subject to review in the courts.” In contrast, Justice Pariente dissenting with whom Justice Anstead concurred, stated that rather than referring the question to the Rules of Judicial Administration Committee of the Florida Bar, she would recede from that portion of Synder that did not require written findings and require such findings by quasi-judicial boards in the future. 

     Supreme Court expands Lucas categorical takings analysis to prospectively temporary regulations.  City of St. Petersburg v. Kablinger; and Keshbro, Inc. v. City of Miami, 26 Fla. L. Weekly S469 (Fla., July 12, 2001).

     The question before the Supreme Court was whether temporary closures ordered by City Nuisance Abatement Boards (“NAB”) to abate public nuisances constitute takings. 

     In Keshbro, the petitioner owned and operated the Stardust Motel which contained 57 units in Miami, Florida.  Since 1988, the City of Miami NAB and Keshbro had frequent interactions.  On October 16, 1992, the NAB ordered the Stardust closed for one year because of drug and prostitution related nuisance violations.  At the reopening in 1993, the Stardust suffered the same problems.  The NAB, on December 10, 1996, served Keshbro with a Notice of Hearing, again charging the Stardust as a drug and prostitution related nuisance.  The Notice recited at least eight arrests involving drug and prostitution activity at the Stardust Motel within the preceding six months.  Keshbro and the NAB stipulated that the Stardust constituted a public nuisance and agreed to a partial closure of the Stardust.  Months later in March 1997, after a status report hearing, the NAB ordered the closure of additional rooms for six months based on additional incidents of drug and prostitution related activity.  Then again in June 1997 the NAB, after hearing additional evidence of nuisance activity including three arrests for the sale of cocaine, ordered a complete closure of the Stardust for six months.  Keshbro responded by filing suit against the City of Miami Beach and the NAB seeking declaratory and injunctive relief and damages for inverse condemnation for the complete closure of the Stardust. 

     The circuit court granted Keshbro’s motion for summary judgment on the inverse condemnation claim. On appeal, the Third District found that although the NAB’s closure order denied all economically beneficial use of the Stardust, no compensation was required to Keshbro under the nuisance exception announced in Lucas v. South Carolina Coastal Council, 505 U.S. 1003, 1992.

     In Kablinger, the City of St. Petersburg NAB on July 1, 1993, ordered the closure of an apartment complex based on two incidents involving the sale of cocaine within the preceding six months.  After a corporate dissolution, Kablinger was assigned the interest in the apartment complex.  Kablinger then filed a complaint on June 17, 1997 against the City seeking compensation from the NAB for the 1993 closure.  The trial court granted Kablinger’s motion for summary judgment as to liability for the temporary taking and on appeal the Second District affirmed the summary judgment. 

     Although both district courts applied the takings analysis established in Lucas, the cities argued that the closure orders of the respective NABs are not suitable for analysis under Lucas.  The Supreme Court rejected the cities’ arguments and found that the categorical takings analysis enunciated in Lucas was applicable to the orders of the NABs.  Under Lucas, a regulatory action that “denies all economically beneficial or productive use of land” will require a city to pay compensation unless the regulation falls within the nuisance exception.  The nuisance exception, as described in Lucas, states that no compensation is necessary if the regulation “does no more than duplicate the result that could have been achieved in the courts by adjacent landowners...under the state’s law of private nuisance, or by the state under its complementary power to abate nuisances that affect the public generally, or otherwise”.  Lucas, 505 U.S. at 1029. 

     The issue then faced by the Court was whether the categorical analysis in Lucas was appropriate to determine whether the temporary closures ordered by the respective NABs deprived Keshbro and Kablinger of “all economically beneficial or productive use” of their land.  After establishing that temporary deprivations or regulations can constitute takings, the Supreme Court extended the rationale in First English Evangelical Lutheran Church v. County of Los Angeles, 482 U.S. 304, (1987) to hold that takings of a defined duration “or temporary in nature” can qualify for categorical treatment under Lucas.  The Supreme Court noted that although First English, “referred to retrospectively temporary takings, absolutely precluding prospectively temporary regulations from treatment under Lucas elevates form over substance and defies economic realities”.  Keshbro, at 5470.  Thus, the Supreme Court held that a temporary regulation that “denies all economically beneficial or productive use of land” is subject to categorical treatment under Lucas. 

     The cities next contended that the NAB orders did not deprive the property owners of all economically beneficial or productive uses of the property because the property could be used for other uses.  The Supreme Court rejected this argument, recognizing that both properties had already been dedicated to a particular use.  In particular, the Supreme Court noted in the Keshbro case that transforming a 57-unit motel into some other use for a six month period lacked any basis in reason. 

     The issue then became whether the nuisance exception offered protection to the local governments.  As noted in Lucas, the cities can resist paying compensation only if the cities can identify “background principles of nuisance and property law that prohibit the uses” that are prescribed by the orders.  Thus, the NAB orders can prescribe only those uses that an adjacent landowner, under the state’s law of private nuisance, would be able to prescribe in a court action for nuisance.  Recognizing that it is settled law in Florida that injunctions to abate nuisances will be specifically tailored to abate only the objectionable conduct, without infringing upon other lawful conduct, the Court analyzed each case individually. 

     In Keshbro, the Supreme Court, affirming the District Court, concluded that the Stardust had become inextricably intertwined with the drug and prostitution activity that was sought to be enjoined and the only way to abate the drug activity was to close the motel.  Therefore, the Supreme Court concluded that the nuisance exception should apply.  

     In contrast, the record in Kablinger revealed no drug or prostitution activity that would indicate that the nuisance activity was inextricably intertwined with the operation of the apartments.  Thus, the Supreme Court held that the NAB order closing Kablinger’s apartment was not specifically tailored to abate the drug nuisance found to exist at the property.  Accordingly, the owner was entitled to compensation for the temporary taking.

     Recognizing the legislative overruling of St. Johns River Water Management Dist. v. Consolidated-Tomoka Land Co., 717 So.2d 72 (Fla. 1st DCA 1998), the First District Court of Appeal finds the 1999 APA Amendments limit a governmental agency’s rule-making authority to “specific law[s] to be implemented.” Board of Trustees of the Internal Improvement Fund v. Day Cruise Ass’n, Inc.,  (Fla. 1st DCA, September 13, 2001).

     Day Cruise Ass’n (“Day Cruise”) challenged a proposed rule of the Board of Trustees of the Internal Improvement Fund (“Board”) that attempted to prohibit cruise ships bound offshore for legal gambling, as well as other vessels used for ferrying passengers to and from these ships, from using submerged sovereign lands for mooring or anchoring.  Citing section 120.52(8)(b) & (c), F.S. (1999), Day Cruise asserted that the Board exceeded its rulemaking authority and the proposed rule enlarged, modified, or contravened the specific provisions of law being implemented by the Board.  After the ALJ invalidated the proposed rule as an invalid exercise of delegated legislative authority, the Board appealed. 

     The First District noted that although the Board has broad responsibilities under the public trust doctrine for managing the state’s submerged lands, these responsibilities do not exempt or excuse the Board’s proposed rules from complying with the Administrative Procedures Act (“APA”).  Next, the Court recognized that in 1999 the Legislature amended the language of section 120.52(8), F.S., from “particular powers and duties” (adopted in 1996) to “specific powers and duties.”  In addition, the Court recognized that the 1999 legislative amendments were in response to the 1st DCA’s interpretation of the “particular powers and duties” language in St. Johns River Water Management Dist. v. Consolidated-Tomoka Land Co., 717 So.2d 72 (Fla 1st DCA 1998), which held that administrative rules were valid if they were “within the class of powers and duties identified in the statute to be implemented.”

     The Court interpreted the 1999 Amendments as an “intent to cabin agency rulemaking authority” and an express rejection of the “class of power and duties” test.  Consequently, it held that the test under the 1999 APA Amendments was “whether a (proposed) rule gives effect to a ‘specific law to be implemented,’ and whether the (proposed) rule implements or interprets ‘specific powers and duties.’”

      Applying this new test to the facts at issue, the Court found no specific power for the Board to regulate gambling cruises or regulate the type of vessels that may anchor or moor above submerged lands based solely on the lawful activities carried on aboard the vessels.  The Court also found that the proposed rule violated a specific limitation in the enabling legislation that forbid any regulations from interfering with commerce on navigable waters.  As such, the Court affirmed the ALJ’s final order invalidating the rule as an invalid exercise of delegated legislative authority.

     Government agency has no authority to review Administrative Law Judge’s award of attorney’s fees and costs as sanctions against the Agency.  Florida Dep’t of Children and Family Serv. v. D.H., 26 Fla. L. Weekly D954, (Fla. 1st DCA, April 5, 2001).

     An Administrative Law Judge (“ALJ”), pursuant to Sections 120.569(2)(c) and  120.595(1), F.S., sanctioned the Department of Children and Family Services for “bringing and pursuing a frivolous and improper action against D.H.”  The Department in its final order reversed the ALJ’s award of attorney’s fees and costs.  On appeal, the First District Court held that the Department lacked the authority to review the ALJ’s award of attorney’s fees and costs, and also found that the ALJ did not abuse his discretion in awarding fees and costs.

     The Florida Fish and Wildlife Conservation Commission must adopt administrative rules regarding endangered species in accordance with the provisions of Chapter 120, F.S.  Florida Fish and Wildlife Conservation Comm’n v. Caribbean Conservation Corp., Inc., 26 Fla. L. Weekly D1480,  (Fla. 1st DCA, June 12, 2001).

     Several environmental groups filed suit seeking a declaration that Chapter 99-245, Laws of Florida, is unconstitutional.  Chapter 99-245, Laws of Florida, was adopted by the Florida Legislature to implement two amendments to the Florida Constitution that would consolidate regulatory authority over endangered marine life within a single agency.  These amendments are commonly known as Revision 5 which amended Article IV, Section 9 and Article XII, Section 23 of the Florida Constitution.  Revision 5 transferred the authority of the former Marine Fisheries Commission and the Game and Freshwater Fish Commission to the Florida Fish and Wildlife Conservation Commission (“FFWCC”).  At issue before the Court was whether the FFWCC’s regulatory authority to adopt rules regarding endangered species were derived from the Constitution or were derived from Chapter 99-245, Laws of Florida.  The District Court, in reversing the circuit court, held that the FFWCC lacks the constitutional authority to establish rules regarding endangered species.  Rather, the authority to establish rules regarding endangered species flows from Chapter 99-245, Laws of Florida, and thus the resulting rules are subject to the provisions of Chapter 120, F.S.

     A taking claim accrues upon the enactment of the ordinance, rather than at the time of the enforcement of the ordinance, where the ordinance allows a ten year period for nonconforming uses to conform.  Lamar Texas Ltd. Partnership v. City of Fort Walton Beach, 26 Fla. L. Weekly D1226 (Fla. 1st DCA, May 15, 2001).

     Lamar leases several sites within the City of Fort Walton Beach upon which it has erected billboard signs.  In 1988, the City enacted an ordinance which prohibited billboards on real property not owned by the billboard owner.  The ordinance further provided that all nonconforming signs must be conformed to the new ordinance by January 1, 1999.  In November 1999, the City served Lamar with a notice of violation of the ordinance.  In response, Lamar filed suit against the City seeking declaratory and injunctive relief, damages for inverse condemnation, and tortious interference with a contractual relationship.  The City moved to dismiss on several grounds, including that the action was barred by the applicable four year statute of limitations.  The trial court granted the City’s motion and dismissed the complaint with prejudice.  On appeal, the District Court affirmed the circuit court’s dismissal, holding that the cause of action accrued upon the enactment of the ordinance rather than at the time the ordinance was enforced against Lamar.  The Court relied upon National Adver. Co. v. City of Raleigh, 947 F.2d 1158 (4th  Cir., 1991) and Lamar Adver. of Mobile v. City of Lakeland, 980 F.2d 1455 (M. D. Fla., 1997).  The District Court cited with approval the holding of the Raleigh court that immediately upon enactment, the ordinance “interfered in a clear, concrete fashion with the property’s primary use...by mandating that this use change or cease within five years.”  Thus, the District Court affirmed the circuit court’s dismissal with prejudice.

     FDOT reversed for erroneously dismissing a petition for lack of standing. Maverick Media Group, Inc. v. Florida Dep’t. of Transp., 26 Fla. L. Weekly D1595 (Fla. 1st DCA, June 26, 2001).

     Maverick sought a sign permit from the Florida Department of Transportation (“FDOT”) to erect a sign on its property.  FDOT, pursuant to Section 479.07(9)(a)(2), F.S., denied Maverick’s application because the proposed sign would be within 1000 feet of an existing permitted sign on the same side of the highway.  Maverick petitioned for a formal administrative hearing pursuant to Chapter 120.57, F.S.  Maverick, relying on Lamar Adver. Co. v. Department of Transp., 497 So.2d 1315 (Fla. 1st DCA 1986), asserted that it had standing to challenge FDOT’s denial of its permit because the permit issued for the nearby Texaco sign was not in compliance with Chapter 479, F.S., and thus could not form the basis for denial of its own application.  FDOT characterized Maverick’s petition as a third-party challenge and denied standing to Maverick based on the requirements set forth in Agrico Chem. Co. v. Department of Envt’l Regulation, 406 So.2d 478 (Fla. 2nd DCA 1981).  The District Court, in reversing FDOT’s dismissal, found that Maverick had standing to challenge its permit denial because Maverick is a specifically named person whose substantial interests are being determined in proceeding under Section 120.52(12)(a), F.S.  In addition, the Court found that Section 479.08, F.S., specifically provides standing to Maverick.  The Court went on to note that even though it was undisputed that Maverick’s proposed sign was within 1000 feet of the Texaco sign, if Texaco’s sign permit was invalid under Section 479.13, F.S., it could not serve as the basis for the denial of Maverick’s permit.  The Court held that this must be the rule regardless of when, if ever, FDOT instituted permit cancellation proceedings against the Texaco permit.  As noted by the Court, Maverick is not concerned with how FDOT regulates the offending sign; rather, it is concerned with obtaining a permit for its own sign. Thus, the Court -- finding Maverick had standing, and finding numerous disputed factual and legal issues surrounding the illegality of the Texaco sign permit -- remanded the case for a formal administrative hearing.

     Decision by Florida Department of Transportation to replace drawbridge with fixed-span bridge is subject to review under Chapter 120, Florida Statutes.  City of Sarasota, et al., v. Florida Dep’t of Transp., et al., 26 Fla. L. Weekly D1090 (Fla. 1st DCA, April 26, 2001).

     The City of Sarasota and Bridge Too High Committee challenged the Florida Department of Transportation’s (“FDOT”) decision to replace an existing drawbridge with a 65 foot fixed-span bridge.  The ALJ found no abuse of discretion by FDOT and recommended that FDOT enter an order approving the bridge.  FDOT, in its final order, not only adopted the recommenced order, but also held that the decision to replace the bridge was part of DOT’s strategic plan pursuant to sections 186.022 & 339.155(3)(b), F.S., and therefore exempt from Chapter 120, F.S., review. Alternatively, FDOT found the Appellants lacked standing.

     The District Court held the decision to build the bridge was not part of FDOT’s strategic plan but was a part of the “development of [a] major transportation improvement” under Section 339.155(6)(b), F.S., and subject to Chapter 120, F.S., review.  Nevertheless, the portion of the final order adopting the ALJ’s recommended order was affirmed.

     Prevailing party denied attorney’s fees in a Section 403.412, F.S., action for failure to give notice to the Department of Insurance.  Goodman v. Martin County Health Dep’t., (Fla. 4th DCA, June 13, 2001).

     Appellants brought an action under the Environmental Protection Act of 1971, Section 403.412, F.S., against Martin County Health Department.  The trial court entered judgment in February, 2000, in favor of the Appellants, thereby making them the prevailing parties pursuant to Section 403.412(2)(f).  Thereafter, the Appellants moved for an award of statutory attorney’s fees.  The Department responded that the Appellants were not entitled to fees because they failed to comply with the notice requirements of Section 284.30, F.S., which required the Appellants to serve a copy of the complaint on the Department of Insurance.  The trial court agreed and denied the Appellant’s claim for attorney’s fees.  On appeal, the District Court held that Section 284.30 is a condition precedent to the recovery of attorney’s fees against the State, and was not pled by the Appellants in their amended complaint.  Therefore, since Appellants failed to allege and prove that all conditions precedent were met, the Department had no obligation under the Rules of Civil Procedure to allege noncompliance with Section 284.30 in its answer.  Thus, the Department could not have waived the Appellant’s noncompliance with Section 284.30.  The District Court also rejected Appellant’s attack on the constitutionality of the statute, which alleged that the statute is vague, arbitrary or capricious, and bears no reasonable relationship to a legitimate legislative intent. 

      Developer’s lawsuit against County Code Enforcement Board dismissed for failure to exhaust administrative remedies.  Central Florida Investments, Inc. v. Orange County Code Enforcement Bd., 26 Fla. L. Weekly D1981 (Fla. 5th DCA, August 3, 2001).

     Central Florida Investments, Inc. (“Central Florida”), among others, are the owners/developers of a condominium and timeshare resort located on Big Sand Lake in Orange County.  The resort was originally approved as a planned development district in 1980.  Subsequently, an application was filed by Central Florida’s predecessor to amend the development to allow a boat dock and shelter on the Lake for the rental of non-powered boats.  This application was approved.  In January of 1993, Central Florida’s predecessor applied for an amendment to the development plan to permit the leasing of jet skis, operation of a ski school with one ski boat, operation of a ski jump and slalom course, the holding of boat ownership meetings, the holding of water ski tournaments, and the making of television commercials and movies using powerboats on the Lake.  After negotiations with neighboring homeowners associations who opposed the amendment, a compromise was reached whereby Central Florida changed their request to allow for the rental of six jet skis and one ski boat.  Despite this settlement, the County Commission denied the request for the amendment at a hearing on July 6, 1993. 

     In August of 1993, Central Florida filed a petition for a writ of certiorari challenging the denial of its request for the amendment.  In a separate suit, Central Florida sought declaratory relief, alleging that it was in doubt as to its rights to use motorized watercraft on Big Sand Lake.  The trial court granted Central Florida’s petition for a writ of certiorari and quashed the order of the County Commission denying Central Florida’s request for the amendment.  In addition, the trial court, in the declaratory judgment suit, issued a temporary injunction enjoining the County from attempting to prohibit the rental of boats and jet skis at the resort. 

     Notwithstanding these orders, Central Florida withdrew its application and terminated commercial motorized boat rental in April of 2000.  The County then moved to dismiss the lawsuit.  In response, Central Florida filed a six-count amended complaint, of which three counts sought a declaration as to rights, one count sought injunctive relief, one count sought damages for inverse condemnation, and the final count sought damages for a civil rights violation under Section 42 U.S.C. § 1983.  The County then filed a supplement to its motion to dismiss, arguing that Central Florida failed to exhaust its administrative remedies.  The trial court granted the County’s motion to dismiss, finding Central Florida had failed to exhaust its administrative remedies by withdrawing the application to amend the development plan. 

     On appeal, Central Florida argued that there was no need to exhaust its administrative remedies because the lawsuit involved constitutional issues and challenged the County’s police power.   The Fifth District noted that a landowner can generally attack the validity of an ordinance without exhausting administrative remedies.  However, the Court noted that when the constitutionality of an ordinance is challenged as applied to a particular property, the landowner must seek a variance or exception before that party can seek judicial review.  Therefore, the Court found that since Central Florida is challenging actions of the County as applied to its resort, it must exhaust its administrative remedies.  Central Florida had alternatively argued that any further administrative action would be futile due to unfavorable comments made by the County Chairman at that time.  The Court rejected this futility argument, noting that the County had a new Chairman, and further noted that the County Chairperson does not speak or act on behalf of the County.  Therefore, the Fifth DCA affirmed the dismissal of the trial court.

 

Gary Hunter, Jr. is a Shareholder with Hopping Green Sams & Smith, P.A. in Tallahassee, Florida.  He received his B.B.A. and J.D. from the University of Georgia.  Kent Safriet is an Associate with Hopping Green Sams & Smith, P.A. in Tallahassee, Florida.  He received his B.S. from Clemson University and his J.D. from the University of South Carolina.  Mr. Hunter and Mr. Safriet practice primarily in the areas of environmental and land use litigation and solid and hazardous waste regulation.