Barco Holdings, LLC v. Terminal Inv. Corp.

967 So. 2d 281, 2007 WL 2780893
CourtDistrict Court of Appeal of Florida
DecidedSeptember 26, 2007
Docket3D06-2894, 3D05-2073, 3D06-2893, 3D05-1913
StatusPublished
Cited by16 cases

This text of 967 So. 2d 281 (Barco Holdings, LLC v. Terminal Inv. Corp.) 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
Barco Holdings, LLC v. Terminal Inv. Corp., 967 So. 2d 281, 2007 WL 2780893 (Fla. Ct. App. 2007).

Opinion

967 So.2d 281 (2007)

BARCO HOLDINGS, LLC, Appellant,
v.
TERMINAL INVESTMENT CORPORATION, Bernuth Agencies, Inc., and Bernard Korman, as Trustee and not Individually and/or assigns, Appellees.

Nos. 3D06-2894, 3D05-2073, 3D06-2893, 3D05-1913.

District Court of Appeal of Florida, Third District.

September 26, 2007.

*284 Hogan & Hartson and Carol A. Licko, Daniel E. Gonzalez, Richard C. Lorenzo and Vanessa A. Sisti, Miami, for appellant.

Keith D. Diamond; Jay M. Levy; Ruden McClosky and Ronald A. Shapo; Adorno & Yoss and Jack R. Reiter, Miami, and Alan J. Perlman, Fort Lauderdale, and Natalie J. Carlos, Miami, for appellees.

Before GREEN, WELLS, and CORTIÑAS, JJ.

CORTIÑAS, Judge.

Barco Holdings, LLC ("Barco") appeals from four trial court orders entered against it on various claims. Terminal Investment Corporation ("Terminal") owns an island ("Terminal Island") next to Fisher Island, which is leased by Bernuth Agencies, Inc. ("Bernuth") for shipping activities and the Fisher Island Community *285 Association ("FICA") for parking facilities. FICA's lease commenced in 1996 and covers all of the property that is not leased to Bernuth.

Bernuth entered into its lease on April 9, 2001, for a two-year term, terminating on April 30, 2003. The lease granted Bernuth a right of first refusal, which can be exercised by Bernuth within seven days of receiving a proposed purchase agreement and must be accompanied by a deposit. Additionally, the lease gave Bernuth an option to purchase which could be exercised at any time during the term of the lease by submitting written notice, an executed purchase agreement, and a deposit.[1] The lease provided that both of these provisions could be exercised by Bernuth only if Bernuth is not in default of the lease as that term was defined in the lease.

On February 27, 2004, Terminal, which had been experiencing financial difficulties and was facing foreclosure actions, entered into a contract with Dade Marine Investments, Inc. ("Dade Marine") for the sale of Terminal Island.[2] This contract provided for a $15,000,000 purchase price and required closing to occur by May 15, 2004. Subsequently, Dade Marine assigned the contract to Barco on May 14, 2004.

On April 6, 2004, while the Dade Marine contract was still in effect, Terminal entered into another back-up contract to sell Terminal Island to Bernard Korman ("Korman"). This contract provided for a purchase price of $15,000,000 and a $250,000 deposit in escrow. Additionally, the contract specified that it was subject to the Silvers contract, the Dade Marine contract, and the Bernuth lease.

On April 20, 2004, Terminal notified Bernuth that the Silvers contract had been cancelled and tendered to Bernuth the Dade Marine contract and the Korman contract to allow Bernuth to exercise its right of first refusal within seven days. Bernuth did not exercise its right of first refusal. However, on May 14, 2004, the day Terminal and Barco were scheduled to close, Bernuth gave notice of its intent to exercise its separate option to purchase the property by tendering to Terminal a purchase agreement and a $1,500,000 deposit. Bernuth decided to exercise its option to purchase after reaching an agreement with Korman under which Korman would finance Bernuth's exercise of its purchase option and Bernuth would then sell the property to Korman, in exchange for favorable lease terms and another option to purchase. This agreement is referred to by the parties as the Bernuth-Korman agreement and will be discussed in more detail below.

As a result of Bernuth's exercise of its purchase option, Terminal submitted an identical letter to both Barco and Bernuth, indicating that Bernuth had exercised its purchase option, and that as a result, Terminal was unsure of its obligations under the Dade Marine contract and the Bernuth lease, but that Terminal would still close with whichever party could present a Settlement Agreement authorizing the closing and releasing Terminal from liability to the party with whom Terminal did not close. Barco filed suit the same day, seeking an *286 emergency order requiring Terminal to close, specific performance against Terminal for breach of contract, and a declaration as to which party (Bernuth, Korman, or Terminal) had superior ownership rights to the property. Barco also sought an emergency injunction prohibiting the property from being transferred or sold. The trial court held a hearing on the emergency injunction on May 18, 2004, and granted an injunction prohibiting Terminal from conveying Terminal Island to someone other than Barco or Bernuth.[3]

A flurry of counterclaims and cross-claims then followed. On May 21, 2004, Korman filed a counterclaim against Barco and a cross-claim against Terminal, seeking specific performance, a declaratory judgment, and an injunction.[4] Korman also filed a lis pendens on the property to preserve his rights under the Korman back-up contract. On May 24, 2004, Terminal assigned the Bernuth lease to Barco. This assignment contained an indemnification provision, discussed in more detail below. On June 3, 2004, Barco moved for an order permitting the sale of Terminal Island to Barco. After hearing argument, the trial court entered an order approving the sale, but warned the parties to the sale that they were proceeding at their own risk. Terminal and Barco then closed on the property. On June 14, 2004, Bernuth filed a counterclaim against Barco and cross-claims against Terminal and Korman, seeking specific performance and other relief. On July 7, 2004, Terminal, Bernuth, and Korman entered into a settlement stipulation, apparently unbeknownst to Barco, thereby settling the cross-claims between the parties. On July 9, 2004, Terminal filed a motion to dismiss Barco's claims against Terminal for injunctive relief and damages based on the fact that the closing between Terminal and Barco had occurred. This motion was granted on September 10, 2004, and the trial court allowed Barco ten days to file an amended complaint.

On September 17, 2004, Barco filed an amended complaint, which excluded the specific performance and declaratory counts that were previously dismissed, but stated tortious interference claims against Bernuth and Korman, as well as a breach of contract claim against Terminal. Korman moved to dismiss the tortious interference claim against him, and realleged his claims for a declaratory judgment and specific performance against Barco and Terminal. Bernuth also realleged its claim for specific performance. Bernuth subsequently amended its counterclaim to add a count for breach of contract. Terminal answered Barco's complaint, asserted affirmative defenses, and moved for judgment on the pleadings. On November 5, 2004, Bernuth moved for summary judgment on its claim for specific performance of its option, Barco's claim for tortious interference, and its breach of contract claim against Barco. Korman then moved for summary judgment on his claim for specific performance of his back-up contract with Terminal, and Barco's claim for tortious interference. On November 9, 2004, Barco also moved for summary judgment on Bernuth's claim for specific performance of Bernuth's option and Bernuth's claim for breach of contract. Hearings on the summary judgment motions were held on November 30, 2004, December 3, 2004, and February 24, 2005.

*287

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Bluebook (online)
967 So. 2d 281, 2007 WL 2780893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barco-holdings-llc-v-terminal-inv-corp-fladistctapp-2007.