Key Largo Restaurant, Inc. v. TH Old Town Associates, Ltd.

759 So. 2d 690, 2000 WL 378185
CourtDistrict Court of Appeal of Florida
DecidedApril 14, 2000
Docket5D99-2025
StatusPublished
Cited by9 cases

This text of 759 So. 2d 690 (Key Largo Restaurant, Inc. v. TH Old Town Associates, Ltd.) 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
Key Largo Restaurant, Inc. v. TH Old Town Associates, Ltd., 759 So. 2d 690, 2000 WL 378185 (Fla. Ct. App. 2000).

Opinion

759 So.2d 690 (2000)

KEY LARGO RESTAURANT, INC., a Florida corporation, Petitioner,
v.
T.H. OLD TOWN ASSOCIATES, LTD., a Florida limited partnership; and T.H. Old Town, Inc., its general partner, Respondents.

No. 5D99-2025.

District Court of Appeal of Florida, Fifth District.

April 14, 2000.
Rehearing denied June 15, 2000.

*691 Robert W. Anthony of Fassett, Anthony, & Taylor, P.A., Orlando, for Petitioner.

R. Kimbark Lee of Lowndes, Drosdick, Doster, Kantor & Reed P.A., Orlando, for Respondents.

ANTOON, C.J.

Petitioner, Key Largo Restaurant, Inc., seeks certiorari review of an order disqualifying attorney Robert W. Anthony and his law firm from representing petitioner in a breach of contract action. We conclude that the trial court did not depart from the essential requirements of the law and therefore deny the writ.

Petitioner began operating the Key Largo Restaurant in 1985, leasing the premises from the owners of the property, respondents, T.H. Old Town Associates, Ltd. and T.H. Old Town, Inc. In 1993, petitioner sold its restaurant business to La Familia Latina Corporation (La Familia), assigning its interest in the lease to La Familia in return for a promissory note and security agreement on all the personal property and equipment located in the restaurant. In late 1993, La Familia defaulted on the note and on its lease. Recognizing their mutual interest in evicting La Familia from the premises, petitioner and respondents agreed that petitioner's attorney, Mr. Anthony, would represent both parties in the eviction proceeding. In an attempt to avoid a conflict of interest, Mr. Anthony asked petitioner and respondents to sign a waiver of conflict of interest. Petitioner and respondents signed the waiver.

Mr. Anthony's dual representation did not last long. Soon after Mr. Anthony filed the eviction action, La Familia filed a motion to remove Mr. Anthony, claiming that his representation of petitioner and respondents constituted a conflict of interest. La Familia then filed for bankruptcy. Thereafter, respondents notified Mr. Anthony that they would resume the services of their regular counsel, the law firm of Lowndes, Drosdick, Doster, Kantor & Reed, P.A. (Lowndes law firm). On the day the order substituting counsel was entered, Mr. Anthony instituted a lawsuit on behalf of petitioner against third parties who had guaranteed or assumed the debt of La Familia.

When the stay of the bankruptcy court was lifted, Mr. Anthony added La Familia as a defendant to the petitioner's lawsuit. Thereafter, settlement agreements were reached in the lawsuit and the bankruptcy case. The agreements provided for the payment of back rent and the execution of a Landlord's Agreement. Petitioner and respondents were parties to the Landlord's Agreement which provided that ho rent was due and that respondents agreed to subordinate their landlord's lien to petitioner's security interest. Throughout the negotiations leading to the execution of the Landlord's Agreement, Mr. Anthony represented petitioner and the Lowndes law firm represented respondents.

The instant controversy between petitioner and respondents arose when respondents notified petitioner that the new tenant of the restaurant premises, Jamil Abdo, was in default and owed back rent. Respondents demanded that petitioner pay the back rent in accordance with the terms of the parties' Landlord's Agreement. As a result of this development, Mr. Anthony filed suit against respondents on behalf of petitioner, alleging that respondents had breached the Landlord's Agreement by failing to give petitioner timely notice of the default sufficient to allow petitioner to exercise its right to become an assignee under the terms of the lease and take possession of the restaurant premises, thereby avoiding liability for past due rent. Petitioner filed for bankruptcy at the same time.

The bankruptcy case was eventually dismissed on petitioner's motion and the lawsuit against respondents was set for *692 trial in the circuit court. However, before trial, respondents filed a motion to disqualify Mr. Anthony from representing petitioner, asserting that a conflict of interest existed as a result of Mr. Anthony's prior representation of respondents in the action to evict La Familia. The motion described the eviction action as being a "matter substantially related to this case involving the same leased premises and the same restaurant." The motion also alleged that, as a result of his prior representation of respondents, Mr. Anthony "acquired information that, although not confidential, related to the representation which Mr. Anthony is likely to use or should use as a zealous advocate" for petitioner. While acknowledging that respondents had signed a waiver of conflict of interest in the La Familia eviction case, the motion asserted that the waiver form failed to adequately disclose the possibility that petitioner might sue respondents in the future. The motion also alleged that Mr. Anthony was likely to be a witness regarding the issue as to whether respondents had given petitioner notice of Mr. Abdo's default.

The trial court conducted an evidentiary hearing on the motion to disqualify Mr. Anthony. Respondents' vice-president testified that he had met with Mr. Anthony regarding the eviction of La Familia and that he thought the information he had given Mr. Anthony regarding that matter was confidential. He also testified that Mr. Anthony had never advised him that confidential communications could later be used by petitioner in a lawsuit against respondents. On cross-examination, respondents' vice-president admitted that he had met face to face with Mr. Anthony on only one occasion and that the meeting included petitioner's principal and was limited to a discussion of La Familia's conduct as it pertained to the lease. He also agreed that at the time the lease with Mr. Abdo was executed, Mr. Anthony was only representing petitioner; the Lowndes law firm represented the respondents. Respondents' general manager also testified. She stated that she objected to Mr. Anthony's representation of petitioner because "it is possible he could have learned something during that time period that would be relevant to this case in a prejudicial manner" to respondents. She added that this action involved the eviction of Mr. Abdo and therefore it was similar to the eviction action involving La Familia.

Mr. Anthony testified on behalf of the petitioner. He stated that he spoke with respondents' vice-president regarding the potential conflict with petitioner in the La Familia eviction proceeding, as petitioner was attempting to retake possession of the restaurant at the same time the rent was in default. He had only one telephone conversation with respondents' vice-president, during which the vice-president instructed him to file suit to evict La Familia. Mr. Anthony explained he had one meeting with respondents' vice-president along with La Familia's representative in effort to resolve the matter, and that within a few days of that meeting La Familia filed bankruptcy.

At the conclusion of the evidence, the trial court ruled that there was an attorney-client relationship between Mr. Anthony and respondents and that the current lawsuit was substantially related to the prior representation. The court also found that respondents had not consented to allow Mr. Anthony to represent petitioner against respondents in a substantially related matter, nor had respondents waived the right to object. The court concluded that Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Galaxy Fireworks, Inc. v. Kozar
150 So. 3d 256 (District Court of Appeal of Florida, 2014)
Yang Enterprises, Inc. v. Georgalis
988 So. 2d 1180 (District Court of Appeal of Florida, 2008)
Waldrep v. Waldrep
985 So. 2d 700 (District Court of Appeal of Florida, 2008)
Health Care and Retirement Corp. v. Bradley
944 So. 2d 508 (District Court of Appeal of Florida, 2006)
Eccles v. Nelson
919 So. 2d 658 (District Court of Appeal of Florida, 2006)
Morse v. Clark
890 So. 2d 496 (District Court of Appeal of Florida, 2004)
Anderson Trucking Service, Inc. v. Gibson
884 So. 2d 1046 (District Court of Appeal of Florida, 2004)
Metcalf v. Metcalf
785 So. 2d 747 (District Court of Appeal of Florida, 2001)
Eggers v. Eggers
776 So. 2d 1096 (District Court of Appeal of Florida, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
759 So. 2d 690, 2000 WL 378185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/key-largo-restaurant-inc-v-th-old-town-associates-ltd-fladistctapp-2000.