Intercoastal Realty, Inc. v. Tracy

706 F. Supp. 2d 1325, 2010 U.S. Dist. LEXIS 37717, 2010 WL 1510848
CourtDistrict Court, S.D. Florida
DecidedApril 16, 2010
DocketCase 09-CV-62035-COHN/SELTZER
StatusPublished
Cited by12 cases

This text of 706 F. Supp. 2d 1325 (Intercoastal Realty, Inc. v. Tracy) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intercoastal Realty, Inc. v. Tracy, 706 F. Supp. 2d 1325, 2010 U.S. Dist. LEXIS 37717, 2010 WL 1510848 (S.D. Fla. 2010).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS

JAMES I. COHN, District Judge.

THIS CAUSE is before the Court on Defendant Paul Tracy’s Motion to Dismiss Plaintiffs Complaint [DE 15] (“Motion to Dismiss”). The Court has carefully reviewed the Motion to Dismiss, Plaintiffs response [DE 18], Defendants’ reply [DE 19], and is otherwise fully advised in the premises.

I. BACKGROUND

Plaintiff Intercoastal Realty, Inc. is a real estate company that specializes in the sale and marketing of luxury homes. Complaint ¶ 6. Plaintiff “utilizes the services of real estate agents who assist buy *1328 ers and sellers of residential homes [to] conduct the purchase and sale of waterfront property in South Florida.” Id. Joy Triglia (“Triglia”) is a real estate agent who works for Plaintiff. Id.

Triglia worked at length on behalf of Defendant Paul Tracy (“Defendant” or “Lessor”) to procure the sale of Defendant’s multi-million dollar property located at 811 Poinciana Drive, Fort Lauderdale, FL 38301 (“the Property”). Id. ¶7. In early 2008, Defendant decided to lease the Property to Catherine DeFrancesco (“De-Francesco” or “Lessee”). Id. ¶ 8. Accordingly, on January 11, 2008, Defendant and DeFranceso executed a lease agreement (“the Agreement”) for the Property. Id. The Agreement contained a purchase option. The purchase option provided as follows:

PURCHASE OPTION Lessee shall have the option to purchase at a price to be determined by negotiation among the lessor and lessee, should they be able to agree on a purchase price. In the event such a purchase option is exercised by lessee, they shall be entitled to apply 50% of the rental payments paid and received under this lease toward the purchase price. Lessor and Lessee acknowledge that Joy Triglia, Broker Associate, Intercoastal Realty, Inc., is the only agent involved in this transaction and shall be paid six percent (6%) commission on the total purchase price should Lessee purchase said premises from Lessor at any time during or proceeding this lease term.

Id. (“Purchase Option”).

Thereafter, Defendant “embarked on a course of conduct in an attempt to sell [the Property] without paying the six percent commission due under [the Agreement].” Id. ¶ 11. Specifically, on June 29, 2009, Defendant created a Florida Limited Liability Company named “811 Poinciana Drive, LLC” (“the LLC”). Id. Defendant was the initial member of the LLC. Id.

The same day that Defendant created the LLC, Defendant executed a warranty deed for the Property in favor of the LLC. Id. ¶ 12. The LLC paid $10.00 and “other good and valuable considerations” for the Property. Id. Defendant then transferred management and control of the LLC to DeFrancesco. Id. ¶ 13. “DeFrancesco executed a mortgage and security agreement, borrowing $550,000 from Meyer Florence and using [the Property] as security for the loan.” Id. ¶ 14. DeFrancesco also executed a purchase money mortgage on behalf of the Property for the amount of $2,550,000.00. Id. The purchase money agreement reflected the LLC as the mortgagor and Defendant as the mortgagee. Id. The purchase money agreement lists the Property as the security for the loan from Defendant to DeFrancesco. Id. Plaintiff therefore alleges that “rather than pay [Plaintiff] the commission it had earned when [Defendant] sold the multimillion dollar property to DeFrancesco, [Defendant] made the deliberate choice to engage in a course of conduct whereby [Plaintiff] would be wrongfully denied an approximately $240,000 commission due under the terms of the Lease Agreement.” Id. ¶ 15.

As a result, Plaintiff filed a complaint on December 28, 2009. See DE 1 (“Complaint”). The Complaint alleges the following five counts: 1) Breach of Third Party Beneficiary Contract; 2) Breach of Quasi Contract and Unjust Enrichment; 3) Conspiracy to Deprive a Broker of a Commission; 4) Violation of Florida’s Deceptive and Unfair Trade Practices Act *1329 (“FDUTPA”); and 5) Breach of the Duty of Good Faith and Fair Dealing. Defendant has moved to dismiss all five counts.

II. DISCUSSION A. Legal Standard

Under Federal Rule of Civil Procedure 12(b)(6), a court shall grant a motion to dismiss where, based upon a dispositive issue of law, the factual allegations of the complaint cannot support the asserted cause of action. Glover v. Liggett Group, Inc., 459 F.3d 1304, 1308 (11th Cir.2006). Indeed, “[factual allegations must be enough to raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Thus, a complaint must contain “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, — U.S.-, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955).

Nonetheless, a complaint must be liberally construed, assuming the facts alleged therein as true and drawing all reasonable inferences from those facts in the plaintiffs favor. Twombly, 550 U.S. at 555, 127 S.Ct. 1955. A complaint should not be dismissed simply because the court is doubtful that the plaintiff will be able to prove all of the necessary factual allegations. Id. Accordingly, a well pleaded complaint will survive a motion to dismiss “even if it appears ‘that a recovery is very remote and unlikely.’ ” Id. at 556, 127 S.Ct. 1955 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974)).

B. Breach of Third Party Beneficiary Contract

Under Florida law, “[a] person who is not a party to a contract may not sue for breach of that contract where that person receives only an incidental or consequential benefit from the contract.” Caretta Trucking, Inc. v. Cheoy Lee Shipyards, Ltd., 647 So.2d 1028, 1030-31 (Fla.Dist.Ct.App.1994). However, if the third party to the contract is an intended third party beneficiary of the contract, the third party may maintain a breach of contract action against a party that breaches the contract. Id. at 1031. “A party is an intended beneficiary only if the parties to the contract clearly express, or the contract itself expresses, an intent to primarily and directly benefit the third party or a class of persons to which that party claims to belong.” Id.

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Bluebook (online)
706 F. Supp. 2d 1325, 2010 U.S. Dist. LEXIS 37717, 2010 WL 1510848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intercoastal-realty-inc-v-tracy-flsd-2010.