Atria Group, LLC v. One Progress Plaza, II, LLC

170 So. 3d 884, 2015 Fla. App. LEXIS 11031, 2015 WL 4459467
CourtDistrict Court of Appeal of Florida
DecidedJuly 22, 2015
Docket2D14-3916
StatusPublished
Cited by4 cases

This text of 170 So. 3d 884 (Atria Group, LLC v. One Progress Plaza, II, LLC) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atria Group, LLC v. One Progress Plaza, II, LLC, 170 So. 3d 884, 2015 Fla. App. LEXIS 11031, 2015 WL 4459467 (Fla. Ct. App. 2015).

Opinion

WALLACE, Judge.

Atria Group, LLC, appeals a final summary judgment in favor of One Progress Plaza II, LLC, on Count I of its complaint for eviction against Atria Group. 1 One Progress Plaza sought eviction based upon *885 Atria Group’s alleged violations of several nonmonetary conditions of its lease. Because the affidavit and other materials that One Progress Plaza relied upon in support of its summary judgment motion failed to meet the demanding standard for summary judgment, we reverse.

I. THE FACTUAL AND PROCEDURAL BACKGROUND

On April 15, 2010, One Progress Plaza and Atria Group entered into a commercial lease under which Atria Group leased suites 170 and 1900 in One Progress Plaza’s building in St. Petersburg. Atria Group was to use suite 170 as a restaurant and suite 1900 as a nightclub. In September 2013, One Progress Plaza filed a complaint for eviction (count I) and for fraud in the inducement (count II) against Atria Group. In count I, One Progress Plaza alleged that Atria Group had committed numerous nonmonetary violations of the lease and sought entry of a judgment for possession and to accelerate the rent in accordance with the provisions of the lease.

In October 2013, Atria Group filed its answer and affirmative defenses, a request for mediation, and a counterclaim! Atria Group generally denied the majority of the allegations regarding the claimed breaches. And, pertinent to our review of the grant of summary judgment, it also alleged the following affirmative defenses: (1) that One Progress Plaza failed to give the requisite notice of breach and opportunity to cure under the provisions of the lease; (2) that One Progress Plaza’s claims are barred by laches; (3) that eviction would cause an inequitable forfeiture based on Atria Group’s $2,000,000 investment into the promotion and renovation of the premises and payment of $25,000 per month rent since 2010; (4) that One Progress Plaza is barred from terminating the lease under the doctrine of unclean hands; (5) that One Progress Plaza is barred from terminating the lease under the doctrine of equitable estoppel; (6) that One Progress Plaza is barred from terminating the lease under the doctrine of estoppel; and (7) that One Progress Plaza had failed to state a cause of action.

In February 2014, One Progress Plaza moved for summary judgment on its claim for eviction. In support of its motion, One Progress Plaza filed the affidavit of Roger Donaldson, its senior property manager, in which he outlined numerous alleged violations of the lease committed by Atria Group. These alleged violations can be grouped in four categories: (1) damage to the property; (2) illegal activity; (3) disregard of building rules and other lease requirements; and (4) unsanitary conditions and failure to clean the premises. Atria Group filed a response in opposition to the motion for summary judgment. In support of its arguments, it filed the affidavit of Marek Pietryniak and the deposition of Mr. Donaldson. Mr. Pietryniak is the manager of Atria Group.

The circuit court held a hearing on the motion for summary judgment on July 24, 2014. After hearing the parties’ arguments, the circuit court announced that it had reviewed the affidavits and exhibits filed by the parties and had decided to grant summary judgment on count I “as to the eviction aspect of it.” The circuit court entered its written Summary Final Judgment in Favor of Plaintiff on Count I of the Complaint on July 29, 2014, directing Atria Group to vacate the premises by July 31, 2014, and authorizing One Progress Plaza to reenter and to take possession of the premises on' August 1, 2014. This appeal followed.

II. THE STANDARD OF REVIEW

Our review of the circuit court’s ruling on One Progress Plaza’s motion for *886 summary judgment is de novo. Knowles v. JPMorgan Chase Bank, N.A., 994 So.2d 1218, 1219 (Fla. 2d DCA 2008).

Summary judgment is proper only if (1) no genuine issue of material fact exists, viewing every possible inference in favor of the party against whom summary judgment has been entered, Huntington Nat’l Bank v. Merrill Lynch Credit Corp., 779 So.2d 396, 398 (Fla. 2d DCA 2000), and (2) the moving party is entitled to a judgment as a matter of law, [Volusia Cty. v.] Aberdeen at Ormond Beach[, L.P.], 760 So.2d [126, 130 (Fla. 2000) ]. “If the record reflects the existence of any genuine issue of material fact or the possibility of any issue, or if the record raises even the slightest doubt that an issue might exist, summary judgment is improper.” Holland v. Verheul, 583 So.2d 788, 789 (Fla. 2d DCA 1991).

Id. Moreover, the movant “must either factually refute the [opposing parties’] affirmative defenses or establish that they are legally insufficient.” Konsulian v. Busey Bank, N.A., 61 So.3d 1283, 1285 (Fla. 2d DCA 2011) (citing Morroni v. Household Fin. Corp. III, 903 So.2d 311, 312 (Fla. 2d DCA 2005)).

III. DISCUSSION

We begin our discussion by noting that

[u]nder a provision of a lease or an agreement, to the effect that a breach of a covenant to repair or remedy defects in the premises shall work a forfeiture, it will, in the absence of special circumstances, permit the lessor to declare a forfeiture on occurrence of the breach. This is true even though the condition is a harsh one.

Augusta Corp. v. Strawn, 174 So.2d 422, 424 (Fla. 3d DCA 1965); see also Smith v. Winn Dixie Stores, 448 So.2d 62, 62-63 (Fla. 3d DCA 1984) (acknowledging that “[i]t is a recognized principle of law that if there is an express provision of the lease providing for forfeiture upon a default for failure to comply with any obligation under the lease, forfeiture of a lease may be permitted” (footnote omitted)). However, it is the policy in Florida to strictly construe contractual forfeiture provisions against the party seeking to enforce them. Horatio Enters. v. Rabin, 614 So.2d 555, 556 (Fla. 3d DCA 1993). “A court of equity may refuse to declare a forfeiture when the effect of enforcing the tenant’s default would result in an eviction which would be unconscionable, inequitable or unjust under the circumstances.” Id. (citing Amerifirst Fed. Sav. & Loan Ass’n of Miami v. Century 21 Commodore Plaza, Inc., 416 So.2d 45, 46 (Fla. 3d DCA 1982)); see also Smith, 448 So.2d at 63 (noting same).

Article XV of the lease agreement provides, in pertinent part, as follows:

The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by Lessee.
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(3) The failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee ... where such failure shall continue for a period of ten (10) days after written notice thereof from Lessor to Lessee;

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170 So. 3d 884, 2015 Fla. App. LEXIS 11031, 2015 WL 4459467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atria-group-llc-v-one-progress-plaza-ii-llc-fladistctapp-2015.