GASPAR'S PASSAGE, L L C v. RACETRAC PETROLEUM, INC.

243 So. 3d 492
CourtDistrict Court of Appeal of Florida
DecidedApril 4, 2018
Docket17-0055
StatusPublished
Cited by1 cases

This text of 243 So. 3d 492 (GASPAR'S PASSAGE, L L C v. RACETRAC PETROLEUM, INC.) 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
GASPAR'S PASSAGE, L L C v. RACETRAC PETROLEUM, INC., 243 So. 3d 492 (Fla. Ct. App. 2018).

Opinion

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED

IN THE DISTRICT COURT OF APPEAL

OF FLORIDA

SECOND DISTRICT

GASPAR'S PASSAGE, LLC, an Ohio ) limited liability company, ) ) Appellant, ) ) v. ) Case No. 2D17-55 ) RACETRAC PETROLEUM, INC., a ) Georgia corporation, ) ) Appellee. ) )

Opinion filed April 4, 2018.

Appeal from the Circuit Court for Pasco County; Linda Babb, Judge.

Nicole Deese Newlon and William P. Cassidy, Jr., of Johnson & Cassidy, P.A., Tampa, for Appellant.

Mary Ellen R. Himes and David O'Quinn of Fidelity National Law Group, Fort Lauderdale, for Appellee.

MORRIS, Judge.

Gaspar's Passage, LLC, appeals a final judgment entered in favor of

RaceTrac Petroleum, Inc., on its amended counterclaim for an equitable lien. This

action is the result of a dispute over the sale of commercial property in Pasco County that had been held in trust.1 RaceTrac purchased the property, but subsequent to the

sale, one of the trust beneficiaries challenged the trustee's authority to enter into and

complete the sale. As a result, Gaspar, the successor trustee, sued the title insurance

company and RaceTrac. RaceTrac, in turn, filed two counterclaims against Gaspar for

an equitable lien and unjust enrichment as well as a cross-claim against the original

trustee and a third-party complaint against the original trustee and one of the trust

beneficiaries. The counterclaims against Gaspar were based on RaceTrac's assertion

that it had paid off various liens, back taxes, and certain mortgages. Although the trial

court determined that RaceTrac had wrongfully obtained the property, it also determined

that RaceTrac was entitled to an equitable lien for the amount of money it expended in

acquiring the property. Thereafter, the trial was continued on the remaining issues to

permit RaceTrac to add indispensable parties. In this appeal, Gaspar argues that the

trial court erred by refusing to permit it to take a deposition of RaceTrac's expert witness

or to add additional witnesses or exhibits after granting the continuance of the trial. We

agree and therefore reverse on this issue. We affirm the other issues raised by Gaspar,

but we note that our reversal may necessitate reconsideration of those issues on

remand.2

1Theproperty was held by the Captain Wesley Trust which had been created by an unrecorded trust agreement dated November 29, 2005. 2As its second issue, Gaspar argues that the trial court erred by excluding testimony from Gaspar's witness, J. Robert Brown. At trial, RaceTrac made numerous objections at various points during Brown's testimony. While RaceTrac objected solely on the basis of hearsay at certain points, it also objected on the basis of both hearsay and the best evidence rule at other points, and those objections were sustained without explanation. Our reversal on the first issue requires the trial court to conduct further proceedings. To the extent that the trial court determines on remand that Gaspar should be permitted to add its requested additional exhibits, the admission of those exhibits could require reconsideration of RaceTrac's objections to Brown's testimony. Gaspar's third issue is a challenge to the trial court's award of

-2- BACKGROUND

During the pendency of the proceedings below, Gaspar filed an amended

motion for partial summary judgment seeking to void the quitclaim and general warranty

deeds that RaceTrac obtained during the sale of the property. The trial court granted

the motion and voided the deeds, finding that the trustee had lacked authority to sell the

property.

A bench trial commenced in March 2015, but upon RaceTrac's request,

the trial court continued the trial to allow RaceTrac to amend its cross-complaint to add

additional trust beneficiaries as indispensable parties to the action. During a discussion

regarding the continuation, the trial court indicated that it expected that additional

discovery would be necessary. Specifically, the trial court stated: "So I am going to

continue this. If there needs to be some discovery taken about this, sobeit [sic]. But I'm

going to continue this and allow that to happen."

The trial court also determined that RaceTrac was entitled to an equitable

lien in the amount of $1,841,387.83 subject to an upward adjustment if the trial court

later determined that an adjustment was necessary. That sum was comprised of the

amount that RaceTrac paid to the trust's lender plus one-half of the amount RaceTrac

paid to satisfy a second mortgage on the property. Accordingly, the trial court entered a

partial final judgment voiding the deeds and awarding RaceTrac the equitable lien.

RaceTrac subsequently filed its amended counterclaim, cross-claim, and

third-party complaint. The changes relevant to this appeal were the addition of two

prejudgment interest. While we reject the substance of Gaspar's arguments pertaining to this award, we note that due to our reversal on the first issue, the case could result in a different outcome on remand. Thus the amount of the prejudgment interest award could change depending on the resolution of the issue of Gaspar's request for additional discovery, witnesses, and exhibits.

-3- indispensable parties (the original trustee and a trust beneficiary) to the claims against

Gaspar for an equitable lien and unjust enrichment as well as RaceTrac's request for an

equitable lien and judgment that, for the first time, included amounts for "carrying costs

and expenses and the value of improvements incurred in the Subject Property since

July 21, 2011." RaceTrac's original demand for relief did not include a request for

carrying costs and expenses or the value of improvements. As a result of RaceTrac's

amended pleading, Gaspar amended its answer and affirmative defenses to include

defenses of setoff and the exclusion of rental value from the compensation due to

RaceTrac for any improvements it made to the property. After the filing of its amended

counterclaim, cross-claim, and third-party complaint, RaceTrac engaged in limited

discovery.3

A March 3, 2016, hearing was conducted to address a motion for a

supersedeas bond, a motion for stay in RaceTrac's separate appeal, a motion to

compel, and a motion to extend RaceTrac's lis pendens on the property. But at the

hearing, RaceTrac raised the issue of whether Gaspar could engage in further

discovery in preparation for the continued trial that was scheduled for November 2016.

This issue had not been previously raised and was raised without notice to Gaspar.

After other discussions not relevant to this appeal and after requesting a date for the

continued trial, RaceTrac's counsel brought up the issue of one of RaceTrac's experts.

The following discussion then ensued in relevant part:

3In its brief, RaceTrac at first asserts that it "did not conduct discovery," but then within the same sentence acknowledges it engaged in "limited discovery . . . focused on the Trust and the parties [which] only requested updated information regarding previously propounded discovery regarding Gaspar's development of the Wesley Chapel Property, if any." To the extent that RaceTrac believes that a document entitled "Second Request for Production" which requests updated information from the opposing party concerning issues involved in the case should not be considered "discovery," we disagree.

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243 So. 3d 492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaspars-passage-l-l-c-v-racetrac-petroleum-inc-fladistctapp-2018.