FL. DEPT. OF ENVIRONMENTAL PROTECTION v. Contractpoint Florida Parks, LLC

986 So. 2d 1260, 33 Fla. L. Weekly Supp. 493, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20173, 2008 Fla. LEXIS 1240, 2008 WL 2678812
CourtSupreme Court of Florida
DecidedJuly 10, 2008
DocketSC07-1131
StatusPublished
Cited by78 cases

This text of 986 So. 2d 1260 (FL. DEPT. OF ENVIRONMENTAL PROTECTION v. Contractpoint Florida Parks, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FL. DEPT. OF ENVIRONMENTAL PROTECTION v. Contractpoint Florida Parks, LLC, 986 So. 2d 1260, 33 Fla. L. Weekly Supp. 493, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20173, 2008 Fla. LEXIS 1240, 2008 WL 2678812 (Fla. 2008).

Opinion

986 So.2d 1260 (2008)

FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION, Petitioner,
v.
CONTRACTPOINT FLORIDA PARKS, LLC, et al., Respondents.

No. SC07-1131.

Supreme Court of Florida.

July 10, 2008.

*1261 Bill McCollum, Attorney General, Scott D. Makar, Solicitor General, and Louis F. Hubener, Chief Deputy Solicitor General, Tallahassee, FL, for Petitioner.

Mike Piscitelli, Bradley S. Copenhaver, and Eduardo S. Lombard of Vezina, Lawrence and Piscitelli, P.A., Fort Lauderdale, Florida, and W. Robert Vezina, III of Vezina, Lawrence and Piscitelli, P.A., Tallahassee, FL, for Respondents.

PARIENTE, J.

The issue in this case is whether the State is required to pay a lawful judgment arising from a breach of contract action. In order to decide this issue we must interpret section 11.066(3), Florida Statutes (2005), on which the Department of Environmental Protection relied in refusing to pay the judgment against it. In ContractPoint Florida Parks, LLC v. State, 958 So.2d 1035 (Fla. 1st DCA 2007), the First District Court of Appeal held that section 11.066 does not prevent the State or a state agency from paying a judgment in the absence of a specific appropriation but certified the following question to be one of great public importance:

DOES SECTION 11.066, FLORIDA STATUTES, APPLY WHERE JUDGMENTS HAVE BEEN ENTERED AGAINST THE STATE OR ONE OF *1262 ITS AGENCIES IN A CONTRACT ACTION?

Id. at 1038. We have jurisdiction. See art. V, § 3(b)(4), Fla. Const.

For the reasons that follow, we conclude that section 11.066 was not intended to require a specific legislative appropriation before a governmental entity can be required to pay a valid judgment entered into for breach of contract with a private entity. We reach this decision not based on our own view of the "best" policy for the State, but by applying well-established principles of statutory construction. Accordingly, we answer the certified question in the negative and approve the decision of the First District.

FACTS AND PROCEDURAL HISTORY

This case involves a contract entered into between the State and a private entity at a time when the State sought to "privatize" many of its operations. In April 2001, the Florida Department of Environmental Protection (DEP) entered into a concessions agreement with ContractPoint Florida Parks, LLC (ContractPoint) whereby ContractPoint would finance, construct, and operate 143 vacation cabins and associated concessions in eight state parks. Under the concessions contract, ContractPoint was obligated to pay DEP fifteen percent of its gross sales for thirty years, with two ten-year renewal options based on satisfactory performance.

ContractPoint brought a suit against DEP for wrongful termination of the contract. In August 2005, a jury found that DEP breached the contract and judgment was entered in favor of ContractPoint for $628,543. The basis for the breach of contract action against DEP, the amount of the judgment, and the validity of the judgment are not at issue in this case. The issue here concerns DEP's refusal to pay the judgment based on its assertion that section 11.066 prohibits a state agency from paying any judgment unless there is a specific appropriation by the Legislature for that judgment. In December 2005, ContractPoint filed a Petition for Writ of Mandamus in the trial court seeking to compel DEP and Florida's Chief Financial Officer to pay the judgment. Based on its interpretation of 11.066, the trial court denied ContractPoint's petition, finding no clear duty on the part of DEP to pay the judgment without a specific appropriation for that purpose.

On appeal, the First District reversed, relying on this Court's decision in Pan-Am Tobacco Corp. v. Department of Corrections, 471 So.2d 4 (Fla.1984), which held that when the State enters into a legislatively authorized contract with a private entity, "sovereign immunity will not protect the state from action arising from the state's breach of that contract." Id. at 5. The First District noted in ContractPoint that since Pan-Am, the Legislature has actually promoted public/private contracting projects through several statutes and that the interpretation urged by the State would defeat that very purpose by rendering "all public/private contracts illusory." ContractPoint, 958 So.2d at 1038. Accordingly, the First District concluded that the Legislature did not intend section 11.066 to apply to actions in contract and, therefore, held that the statute did not prohibit payment of the breach of contract judgment by DEP. Id.

The Contract

The contract between DEP and ContractPoint, entitled "Concession Agreement," is seventeen pages in length and comprises forty-five separate paragraphs. It imposes many obligations on ContractPoint and includes at least two paragraphs (paragraphs 31 and 32) wherein it waives certain types of claims for compensation by ContractPoint. The contract includes *1263 the following express remedies to the State for certain breaches by ContractPoint: (1) if ContractPoint does not pay the monthly concession fees on time, liquidated damages will be assessed (paragraph 25); (2) if the payments and damages are not received timely, DEP may take possession and cancel the agreement (paragraph 25); (3) DEP has a continuing lien on all ContractPoint personal property and in the event of default may take possession and sell the personal property (paragraph 28); (4) DEP may terminate the agreement at any time for failure to perform (paragraph 40); and (5) if the agreement is terminated and ContractPoint holds over, such shall constitute trespass for which DEP is entitled to receive liquidated damages of $300 per day (paragraph 40).

Thus, under the contract, not only does DEP have the right to compensation for breach, it also has a right to a lien against ContractPoint's personal property. And, of paramount importance to the issue in this case, there is no limitation contained in either the contract or the statutes on DEP's right to sue the contractor and enforce any judgment it might obtain. It is also noteworthy that the contract could have, but did not, contain provisions for liquidated damages against the agency or mandatory alternative dispute resolution procedures, such as arbitration. The Concession Agreement states that it "shall be interpreted in such manner as to be effective and valid under applicable law" and concludes that it "represents the entire agreement of the parties." (Paragraph 17; emphasis supplied.)

Statutes Related to the Contract with DEP

The Legislature expressly granted DEP contracting authority in section 258.007(3), Florida Statutes (2000), which authorizes DEP through its Division of Recreation and Parks to "grant privileges, leases, concessions, and permits for the use of land for the accommodation of visitors in the various parks, monuments, and memorials."[1] This statute was in effect before enactment of section 11.066 and has remained in effect ever since. Section 258.007(3) is an explicit authorization by general law for DEP to enter into express, written concessions contracts with private parties and it was under this legislative authority that DEP contracted with ContractPoint in this case.

Moreover, the Legislature expressly encouraged and authorized DEP to contract with private entities for the specific type of project contemplated in the concessions contract between DEP and ContractPoint.

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986 So. 2d 1260, 33 Fla. L. Weekly Supp. 493, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20173, 2008 Fla. LEXIS 1240, 2008 WL 2678812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fl-dept-of-environmental-protection-v-contractpoint-florida-parks-llc-fla-2008.