Circa Ltd. v. City of Miami

79 F.3d 1057, 1996 WL 132003
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 9, 1996
DocketNo. 93-5360
StatusPublished
Cited by10 cases

This text of 79 F.3d 1057 (Circa Ltd. v. City of Miami) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Circa Ltd. v. City of Miami, 79 F.3d 1057, 1996 WL 132003 (11th Cir. 1996).

Opinion

CUDAHY, Senior Circuit Judge:

This litigation arises from a failed attempt by public and private entities to cooperate in the redevelopment of Overtown, an economically depressed area of downtown Miami. When the redevelopment project fell through, the private entities, Circa, Ltd., Odessa, Ltd. and their associated enterprises, sued the City of Miami, claiming breaches of contract and violations of their constitutional rights under 42 U.S.C. § 1983. A jury [1059]*1059awarded $3.1 million to Odessa and Circa: $2.6 million to Odessa on its contract claim and $500,000 to Circa on its § 1983 claim. In its appeal, the City challenges both of these awards. It argues that Circa does not have a viable claim under § 1983 because it did not have any constitutionally protected rights arising out of the redevelopment project; and the City argues that improper jury instructions and insufficient evidence undermined the jury’s verdict on Odessa’s contract claim.

Background

Through the Community Redevelopment Act (CRA), Fla.Stat. §§ 163.330-163.450, Florida state law gives local governments broad authority to undertake redevelopment projects for impoverished neighborhoods. The CRA provides counties and municipalities with the power to formulate plans for redevelopment and to execute contracts with private entities to implement those plans. The CRA also specifies a minimum procedure for exercising these powers.

Pursuant to the CRA and its own municipal law, the City solicited redevelopment plans for Overtown from a variety of parties, including a group comprised of Circa, Ltd., the Barness Organization and William and Bernice Sawyer (collectively CBS). CBS proposed the construction of moderate income housing and retail properties on several parcels of land to which the City claimed title. In 1985, the City approved CBS’s proposal and directed the City Manager to begin negotiations for a development agreement that would be submitted to the City Commission for final approval. Under the CRA, the City Commission’s final approval was essential for the completion of the redevelopment agreement.

These negotiations did not progress smoothly. As a prerequisite to the completion of a development agreement, the City required CBS to obtain firm commitments for project financing. When CBS’s initial financing plan collapsed, the City gave it some assistance in finding new sources of capital; but financial backing for the entire project was difficult to assemble. Eventually, CBS and the City decided to proceed with the project in piecemeal fashion. CBS found a lender who promised to provide the money for the development of one of the parcels, and it created a new entity, Odessa, Ltd., which would be designated as the developer for that parcel. The City Commission approved and executed a development agreement with Odessa and gave Odessa a 99-year lease on the land.

Despite the completion of this agreement, Odessa never completed the development of the parcel. The prospective lender for this phase of the project backed out and was replaced by the Puller Mortgage Company which made its loan contingent on proof that the City had clear title to the land that it was leasing to Odessa. Puller also wanted proof that the City would make its own contribution to project financing. Although the City had such proof available, it did not furnish it in time to meet Puller’s deadline in 1988. Puller then withdrew its commitment, and Odessa was left without sufficient financing. Odessa continued to look for money, but city officials deemed its efforts unsatisfactory. In 1990, the City Commission terminated the development agreement and the lease with Odessa, and it also terminated its approval of CBS’s entire redevelopment proposal.

The constituent entities of CBS sued the City, bringing several claims. Two of them concern us here. Circa claimed that the City had violated § 1983 when it terminated its approval of the entire redevelopment proposal. According to Circa, a combination of the CRA and Miami ordinances operated to give it a property right as soon as the City had approved it as a developer; and Circa argued that the City’s abrupt termination of that approval in 1990 effected a deprivation of its property right without due process. Odessa claimed that the City had breached its lease and development agreement in a number of different ways.

Throughout the litigation, the City tried to convince the district court that, as a matter of law, Circa could not maintain its § 1983 claim. First moving for summary judgment and later moving for judgment as a matter of law, the City argued that acceptance of a developer’s proposal under the CRA could not create a property right in the developer. [1060]*1060In the City’s view, a developer did not have a property right until it obtained a lease as a result of a completed development agreement. The City also moved for a directed verdict and for judgment as a matter of law on Odessa’s contract claim, arguing that there was not enough evidence to sustain it. The court denied all of these motions, submitting the § 1983 claims and the contract claims to the jury. The jury found that the City had breached Odessa’s lease, and it awarded $2.6 million in damages to Odessa. It also found that the City had deprived Circa of a property right without due process by terminating its approval of Circa’s proposal. It awarded Circa $500,000 as a result of this finding.

Discussion

The City argues that Circa did not have a property right and, therefore, did not have a viable claim under § 1983. On the basis of this argument, the City believes that it is entitled to judgment as a matter of law on Cirea’s § 1983 claim.

The City also attacks the jury’s verdict for Odessa on its contract claims. The City maintains that the judgment for Odessa on its contract claim cannot stand because the underlying verdict was not supported by substantial evidence. Alternatively, the City contends that the district court “polluted” all of the jury instructions on all of the claims when, as part of its charge on the § 1983 claim, it asked the jury to decide whether the Circa group had a property right. According to the City, the jury’s attempt to answer this question of law would have confused its deliberations to such an extent that it could not properly consider any other issues in the trial. Therefore, the City contends that it deserved a directed verdict or judgment as a matter of law in its favor on Odessa’s contract claim.

Circa’s § 1983 Claim,

To state a viable claim under § 1983, a plaintiff must allege a violation of a federal right by a person acting under color of state law. Gomez v. Toledo, 446 U.S. 635, 640, 100 S.Ct. 1920, 1923, 64 L.Ed.2d 572 (1980). In its claim, Circa invoked only one federal right — the right to be free from deprivations of property without due process of law. The existence of a property right is determined not by federal law, but by existing rules or understandings such as state law. Board of Regents of State Colleges v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972).

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Circa Limited v. City Of Miami
79 F.3d 1057 (Eleventh Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
79 F.3d 1057, 1996 WL 132003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/circa-ltd-v-city-of-miami-ca11-1996.