Mid-Continent Electric, Inc. v. Florida (In re Mid-Continent Electric, Inc.)

278 B.R. 601, 15 Fla. L. Weekly Fed. B 202, 2002 Bankr. LEXIS 557
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedApril 11, 2002
DocketBankruptcy No. 00-12791-9P1; Adversary No. 01-479
StatusPublished

This text of 278 B.R. 601 (Mid-Continent Electric, Inc. v. Florida (In re Mid-Continent Electric, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-Continent Electric, Inc. v. Florida (In re Mid-Continent Electric, Inc.), 278 B.R. 601, 15 Fla. L. Weekly Fed. B 202, 2002 Bankr. LEXIS 557 (Fla. 2002).

Opinion

ORDER GRANTING IN PART AND DENYING MOTION TO DISMISS

(Doc. No. 27)

ALEXANDER L. PASKAY, Bankruptcy Judge.

The matter under consideration in this yet to be confirmed Chapter 11 case is a Motion to Dismiss filed together by the State of Florida, Department of Transportation (DOT) and Thomas F. Barry, Jr., Secretary of the State of Florida, Department of Transportation (DOT Secretary) in Adversary Proceeding No. 01-479. This Adversary Proceeding was initiated by Mid-Continent Electric, Inc. (Debtor) against the DOT and DOT Secretary by the filing of an Amended Complaint, which sets forth three claims in three separate counts.

The claim in Count I is entitled “Enjoin Violations of the Automatic Stay.” In Paragraph 5, the Debtor asserts that it intends to institute an action against the DOT to recover final payment under its contract with the DOT, bearing contract no. 19713 (the Project). In Paragraph 6, the Debtor contends that “Said property is in the possession of the Defendant.” (Sic). In Paragraph 7, the Debtor contends that: “This action threatened by FDOT is in contravention of and in violation of the provisions of 11 U.S.C. § 362.” (Sic). In Paragraph 8, the Debtor contends that: “Further, the actions of the FDOT violate the provisions of 11 U.S.C. § 108(a)(2).” (Sic). In addition to the injunctive relief sought, the Debtor also stated that it intends to pursue an action against DOT for an equitable contract adjustment. In the Wherefore Clause, the Debtor seeks an injunction forbidding the DOT, its agents, servants and employees, “from violating Federal Bankruptcy law and by continuing to ignore an act in contravention of the provisions of 11 U.S.C. §§ 362 and 108(a)(2).”

The claim in Count II is entitled “Enjoin Violations of Federal Bankruptcy Law,” and basically states the same allegations as in Count I, but in this Count the relief sought is against the DOT Secretary, his [603]*603agents, servants and employees. The Debtor seeks an injunction preventing them “from violating Federal Bankruptcy law by continuing to ignore and act in contravention of the provisions of 11 U.S.C. §§ 362 and 108(a)(2).”

The claim in Count III is entitled “Declaratory Judgment,” and names the DOT Secretary as defendant. In this Count, the Debtor seeks declaratory judgment pursuant to 28 U.S.C. § 2201 and 28 U.S.C. § 2202. The gravamen of the relief sought is an adjudication by this Court that the State’s Statute of Limitations on the claim of the Debtor against the DOT did not run on November 7, 2000 since the Debtor filed its Petition for Relief on August 17, 2000, and the applicable Statute of Limitation was extended by virtue of 11 U.S.C. § 108(a)(2). In the Wherefore Clause, the Debtor demands a judgment against the DOT Secretary claiming that the applicable Statute of Limitations was tolled by the Petition for Relief filed by the Debtor by virtue of 11 U.S.C. § 108, and the position of the DOT Secretary as conducted through his agents and employees is in violation of federal law. (Sic).

The immediate matter under consideration is a Motion to Dismiss the Amended Complaint, filed by both the DOT and the DOT Secretary. The DOT contends that this Court lacks jurisdiction over the sovereign State of Florida and that the Amended Complaint fails to state a cause of action against the DOT. In addition, both Defendants request that this Court abstain from hearing the Amended Complaint on the basis of judicial economy. In the alternative, they seek a stay pending the outcome of a decision by the U.S. Supreme Court, currently pending before that Court in the case of Raygor v. Regents of the University of Minnesota, cert. accepted, 532 U.S. 1065, 121 S.Ct. 2214, 150 L.Ed.2d 208 (2001). This decision was subsequently decided by the Supreme Court on February 27, 2002. See Raygor, 534 U.S. 533, 122 S.Ct. 999, 152 L.Ed.2d 27 (2002).

The Debtor does not seek, in this Adversary Proceeding, any monetary relief against the State of Florida, the DOT Secretary, or the DOT. Instead, the Debtor seeks an injunction against both the DOT and the DOT Secretary from effectuating a permanent forfeiture, i.e., a non-payment of the balance claimed to be due as the final payment with respect to the Project. The Debtor also seeks declaratory relief that the Statute of Limitations imposed by Florida Statutes § 337.19 was tolled pursuant to 11 U.S.C. § 108(a)(2).

In response, the DOT Secretary and DOT argue that this Court lacks jurisdiction over the State of Florida on duel grounds: (1) the Eleventh Amendment and (2) sovereign immunity theories, as espoused by the Supreme Court in Seminole Tribe of Florida v. Florida, 517 U.S. 44, 116 S.Ct. 1114, 134 L.Ed.2d 252 (1996) and its progeny, Kimel v. Florida Bd. of Regents, 528 U.S. 62, 120 S.Ct. 631, 145 L.Ed.2d 522 (2000); Alden v. Maine, 527 U.S. 706, 119 S.Ct. 2240, 144 L.Ed.2d 636 (1999). And, the DOT and DOT Secretary argue that the Amended Complaint fails to state a cause of action.

This Court, having considered argument of counsel and the extensive legal memo-randa in support and in opposition of the Motion to Dismiss by both Defendants, now finds and concludes as follows:

Considering the Motion under consideration as it relates to the claims of the Debtor in Counts I and II, this Court is satisfied that these claims, as pled, do not state a claim for which relief can be granted. First, it is unclear from the pleading which of the subclauses of 11 U.S.C. § 362 the DOT was supposed to have violated or [604]*604threatened to violate the automatic stay. Apparently, the Debtor intends to sue the DOT to recover the final contract balance it claims it is entitled to under certain contract it had with the DOT, and it is apprehensive that the DOT will raise the defense that the claim is time barred.

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Related

Chisholm v. Georgia
2 U.S. 419 (Supreme Court, 1793)
Seminole Tribe of Florida v. Florida
517 U.S. 44 (Supreme Court, 1996)
Alden v. Maine
527 U.S. 706 (Supreme Court, 1999)
Kimel v. Florida Board of Regents
528 U.S. 62 (Supreme Court, 2000)
Board of Trustees of Univ. of Ala. v. Garrett
531 U.S. 356 (Supreme Court, 2001)
Raygor v. Regents of the University of Minnesota
534 U.S. 533 (Supreme Court, 2000)
Abbott Laboratories v. Mead Johnson & Company
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In Re: Nvr, Lp, Debtor
189 F.3d 442 (Fourth Circuit, 1999)
Champagne-Webber, Inc. v. City of Ft. Lauderdale
519 So. 2d 696 (District Court of Appeal of Florida, 1988)
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Raygor v. Regents of the University of Minnesota
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Bluebook (online)
278 B.R. 601, 15 Fla. L. Weekly Fed. B 202, 2002 Bankr. LEXIS 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-electric-inc-v-florida-in-re-mid-continent-electric-flmb-2002.