PAJ Investment Group, LLC v. El Lago N.W. 7th Condominium Association, Inc.

CourtDistrict Court of Appeal of Florida
DecidedOctober 16, 2024
Docket3D2023-2116
StatusPublished

This text of PAJ Investment Group, LLC v. El Lago N.W. 7th Condominium Association, Inc. (PAJ Investment Group, LLC v. El Lago N.W. 7th Condominium Association, 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
PAJ Investment Group, LLC v. El Lago N.W. 7th Condominium Association, Inc., (Fla. Ct. App. 2024).

Opinion

Third District Court of Appeal State of Florida

Opinion filed October 16, 2024. Not final until disposition of timely filed motion for rehearing.

________________

No. 3D23-2116 Lower Tribunal No. 22-11625-CA-01 ________________

PAJ Investment Group, LLC, Appellant,

vs.

El Lago N.W. 7th Condominium Association, Inc., Appellee.

An Appeal from the Circuit Court for Miami-Dade County, Valerie R. Manno Schurr, Judge.

Squire, Patton, Boggs (US), LLP, and Alvin B. Davis; Rosenquest Law Firm, PA, and John B. Rosenquest, IV, for appellant.

Luks, Santaniello, Petrillo, Cohen & Peterfriend, and Edgardo Ferreyra, Luis Menendez-Aponte, and Lucas Gargaglione, for appellee.

Before LOGUE, C.J., and MILLER and GOODEN, JJ.

GOODEN, J. PAJ Investment Group, LLC appeals an order of involuntary dismissal

entered during a bench trial. PAJ maintains that the trial court erred in

involuntarily dismissing the case and finding that the easements were in

gross—not appurtenant. For the reasons set forth herein, we affirm.

I.

Frederick Mezey was a real estate developer in Miami in the late 1970s

and early 1980s. Mezey was the principal and general partner in American

Properties, Ltd. American Properties owned all the subject parcels of land

at issue in this appeal. These parcels are located between N.W. 7th Street

and the Tamiami Canal. Mezey and American Properties sought to develop

this area.

El Lago N.W. 7th Condominium Association, Inc. currently operates

the El Lago Condominium. The condominium is located on one of the

parcels with direct access to N.W. 7th Street. PAJ Investment Group

currently owns Parcels 17-21. Parcels 17-21 are located immediately north

of El Lago—along and in the Tamiami Canal. The below graphic

demonstrates the location of the properties:

2 In January 1980, American Properties granted a 52’ wide east

easement and a 50’ wide west easement on the sides of the El Lago property

to Tamiami Sports, Inc. Tamiami Sports was a separate corporate entity

established by Mezey and in which Mezey was the primary shareholder.

PAJ’s expert testified that, since American Properties owned all the subject

properties, Mezey likely formed Tamiami Sports to hold the easements,

thereby avoiding the doctrine of merger. 1

1 At that time, an easement was “extinguished through merger when ownership of the dominant and servient estates become united in one person.” Lacy v. Seegers, 445 So. 2d 400, 401 (Fla. 5th DCA 1984).

3 The easements connect Parcels 17-21 with N.W. 7th Street.

Nevertheless, Tamiami Sports never owned Parcels 17-21 or any adjoining

property. Tamiami Sports was involuntarily dissolved in November 1983.

The easements are verbatim, except for the size and location on the

property. They provide:

THIS INDENTURE, made this 11th Day of January 1980 . . .

BETWEEN AMERICAN PROPERTIES, LTD . . . hereinafter called the GRANTOR:

AND TAMIAMI SPORTS, INC. . . . hereinafter called the GRANTEE:

. . . Grantor has granted . . . to Grantee the use of a . . . right-of- way easement for the purpose of ingress and egress and the other purposes hereinafter set forth. . . .

It is the TRUE INTENT AND PURPOSE of these presents to convey to the Grantee the perpetual right to construct, reconstruct, inspect, enlarge, repair, maintain, remove and replace, operate or use, improve and relocate sanitary sewer lines, utility lines, surface water drainage lines, water, electric, gas, telephone, television and other utilities and facilities as well as the right to install, maintain and to post signs in, on, over, under, along, upon, through, across, above and beneath said right-of-way easement, and to construct the necessary structures incidental and necessary thereto including the right to construct, reconstruct, inspect, enlarge, repair, maintain, remove and replace, operate or use, improve and relocate such pumps for sewerage, water or other utilities and related facilities as may be

However, in 2024, the Legislature enacted section 704.09, Florida Statutes, thereby changing this dynamic. § 704.09, Fla. Stat. (2024). Neither party has raised any argument as to this statute.

4 existing within said right-of-way or as may be thereafter placed thereon by Grantor or Grantee or others within the limits of the said right-of-way, and the perpetual, but, non-exclusive right of ingress and egress.

Grantor further agrees to allow Grantee, its successors and assigns or any authorized agents or representatives thereof the reasonable right of access to and from the said easement for the purpose of exercising the rights granted but without limiting the same to the free and full rights of ingress and egress over and across said lands and other lands of the Grantor to and from said right-of-way easement in accordance with the rights herein given and the right, from time to time, to excavate existing pavement or other structures and to interrupt the access of Grantor, their assigns or successors temporarily as may be necessary during the utilization of this easement by Grantee as well as the right, from time to time, to cut, remove and keep clear any trees, undergrowth or other obstructions that may injure, endanger or interfer[e] with the construction, operation, maintenance and repair of any utility lines, signs, facilities, other accessory structures, or any other rights of Grantee hereunder.

PROVIDED, that upon the completion of any work relating to the aforesaid purposes, the Grantee shall cause all vehicles, equipment, tools and implements used in such work and all materials not incorporated therein to be removed from said lands and shall cause said lands to be left in good and proper condition.

HEREBY RESERVING to the Grantor and Grantor’s heirs, executors, administrators, successors and assigns, the right to use the said lands for any purpose not inconsistent with the terms of this deed and which will not prevent easy and ready access by Grantee, its successors and assigns, the uses aforesaid. ....

Shore Point, Inc., in which Mezey also had an ownership stake, was a

successor in interest to American Properties. It was created to develop the

El Lago Condominium. The condominium declaration was recorded in

5 September 1981—over a year after the easements were created and

recorded. The declaration expressly referenced and were subject to the

easements. Since inception, El Lago has used the easement areas for

residential parking.

A sketch of the 1980 survey is shown below:

In the early 2000s, PAJ acquired title to Parcels 17-21 via tax deed

sale. The parcels were submerged in the Tamiami Canal. 2 Although

2 It appears from the record that they are submerged due to construction at Miami International Airport and overflow from the Tamiami Canal.

6 submerged, PAJ investigated the potential to develop Parcels 17-21. In this

process, PAJ used the easements for the purpose of surveying the parcels,

among other things.

PAJ subsequently sought to sell Parcels 17-21 to a developer, fill in

the property, build 600 condominium units, and use the easements as

permanent ingress and egress for the development. When El Lago learned

of PAJ’s development plans, it terminated PAJ’s access. PAJ’s buyer

withdrew from the contract, causing PAJ pecuniary losses.

PAJ filed a declaratory action against El Lago seeking a declaration

that the easements are appurtenant and seeking injunctive relief to prevent

interference with the easements.

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PAJ Investment Group, LLC v. El Lago N.W. 7th Condominium Association, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/paj-investment-group-llc-v-el-lago-nw-7th-condominium-association-inc-fladistctapp-2024.