Pandya v. Israel

761 So. 2d 454, 2000 WL 726486
CourtDistrict Court of Appeal of Florida
DecidedJune 7, 2000
Docket4D99-2183, 4D99-2253
StatusPublished
Cited by5 cases

This text of 761 So. 2d 454 (Pandya v. Israel) 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
Pandya v. Israel, 761 So. 2d 454, 2000 WL 726486 (Fla. Ct. App. 2000).

Opinion

761 So.2d 454 (2000)

Dinesh PANDYA, as Trustee, and Palm Beach County, a political subdivision of the State of Florida, Appellants,
v.
Joel ISRAEL, Appellee.

Nos. 4D99-2183, 4D99-2253.

District Court of Appeal of Florida, Fourth District.

June 7, 2000.

Elaine Johnson James of Nason, Yeager, Gerson, White & Lioce, P.A., West Palm Beach, for Appellant-Dinesh Pandya, as Trustee.

Sharon Burrows, Assistant County Attorney, Palm Beach County Attorney's Office, for Appellant-Palm Beach County, a political subdivision of the State of Florida.

*455 Glen Rafkin, and Cynthia J. Hoover of Greenspoon, Marder, Hirschfeld, Rafkin, Ross & Berger, P.A., Fort Lauderdale, for appellee.

GROSS, J.

The issue in this case is whether an Agreement of Sale and Purchase (the "Agreement") between appellants Dinesh Pandya and Palm Beach County contravened section 125.35(1)(a), Florida Statutes (1997), which provides that a county is authorized to "sell and convey any real or personal property ... belonging to the county." We affirm the trial court's final judgment setting aside the Agreement for violating the statute.

Commander Ocean Resort I Condominium ("the Resort") is a timeshare condominium development. Unlike a traditional condominium, a timeshare unit is subdivided into fifty-two unit weeks, entitling an owner to use the unit for one week during a calendar year. Property taxes are assessed on each unit week. Because the total value of the unit weeks exceeds the value of a unit which has not been subdivided, the total taxes on a timeshare unit are higher than a unit that has not been subdivided.

Although the developer of the Resort collected property taxes on unit weeks from owners, it failed to remit the taxes to the tax collector. On twenty-seven timeshare units, the tax collector advertised the sale of tax certificates. No one bid on the tax certificates, probably because the taxes due greatly exceeded the value of the timeshare units. Because there were no bidders, twenty-seven tax certificates were issued to Palm Beach County. See § 197.432(1), Fla. Stat. (1997). Pursuant to Chapter 197, the units were scheduled to escheat to the County on December 7, 2001 if none of the following occurred: (1) the holder of a tax certificate for a unit applied for a tax deed and title to such unit was transferred; (2) a unit was redeemed; or (3) the unit was sold from the Land Available for Taxes list.

After the Resort's developer experienced financial difficulty, the Bank of New York foreclosed its mortgage and obtained title to the Resort's hotel, office building and restaurant, eight full units in the timeshare condominium and various unit weeks in other units. In 1995, appellant Dinesh Pandya, as trustee, acquired the Bank of New York's interest in the real property.

Appellee Joel Israel owned all the unit weeks in five timeshare units and tax certificates on twenty-seven units.

Due to the developer's financial problems, the Resort had fallen into disrepair. After taking over the developer's interest, Pandya undertook to improve the maintenance and appearance of the Resort. All the parties to this case had an interest in achieving the revitalization of the Resort.

Beginning in 1995, Pandya negotiated with the County to "secure the right to acquire" the units for which the County held tax certificates. The appraised value of the County's interest in the property was $170,000; taxes owed on the units totaled $3,200,000.

In 1997, pursuant to section 125.35(1)(b), Florida Statutes (1997), the County published an invitation to bid for the purpose of acquiring the County's interest in the tax certificates pertaining to the twenty-seven units. Pandya tendered the only bid. The Board of County Commissioners approved the bid and authorized the County to execute an Agreement of Sale and Purchase.

Under the October 21, 1997 Agreement, the County acknowledged that it held tax certificates for unpaid taxes in connection with twenty-seven units located within the project. The Agreement stated that "upon taking title to [the units], [the County] desires to sell and [Pandya, as trustee] desires to purchase [the units] in the manner set forth herein." The Agreement described the mechanics of the sale:

1. Sale and Purchase

a. Not later than 30 business days after the Escheat Dates [December 7, *456 2001], the Seller shall cause the Clerk of the Circuit Court of Palm Beach County to execute a tax deed vesting title in the Seller's Board of County Commissioners.
b. Provided Buyer is in compliance with the terms and provisions of this Agreement, not later than 30 business days after a tax deed for a Unit is recorded, Seller shall convey the Unit to Buyer or to an entity designated by Buyer. Not withstanding the foregoing, Seller shall not be obligated to convey the Units to Buyer until Buyer has paid the Purchase Price in full.
c. Each transfer of a Unit shall be evidenced by a county deed ... from Seller in the form prescribed by Section 125.411 of the Florida Statutes.

The purchase price established by the contract was $192,726, payable in six installments. In the event that the County was unable to deliver a deed to a unit, the purchase price was to be reduced by $7,138 per unit. The County agreed not to "accept or negotiate any tax deed application for less than actual amount due in connection with the Tax Certificate."

Israel filed a declaratory judgment action against the County and Pandya seeking to invalidate the Agreement. Israel argued that the Agreement contravened section 125.35(1), Florida Statutes (1997). The trial court denied Pandya's motion to dismiss, ruling that the declaratory judgment action was proper and that Israel had standing to bring it. All parties cross moved for summary judgment. The trial court denied appellants' motion and granted Israel's, holding that the Agreement was "void or otherwise invalid and unenforceable." The final judgment ruled that the County was precluded from entering into an agreement to sell the property prior to its escheating and that the county must "follow the procedure of Fla. Stat. § 125.35(1) in the event competitive bids are solicited for the Real Property if title is obtained."

We reject appellants' contention that the circuit court was without jurisdiction due to the absence of both a bona fide dispute and an actual, present need for the declaration. "The purpose of a declaratory judgment is to afford parties relief from insecurity and uncertainty with respect to rights, status, and other equitable or legal relations." Santa Rosa County v. Administration Comm'n, Div. of Admin. Hearings, 661 So.2d 1190, 1192 (Fla.1995) (citation omitted). Israel sought the declaratory judgment concerning the enforceability of the existing Agreement between Pandya and the County, so that the declaration concerned a present, ascertainable state of facts. A declaratory judgment "may be rendered by way of anticipation with respect to any act not yet done or any event which has not yet happened." § 86.051, Fla. Stat. (1997). The transaction involved potential ownership of units at the Resort where Israel was the other main property holder. Presumably the majority owner of the units described in the Agreement would control the future development of the property.

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Cite This Page — Counsel Stack

Bluebook (online)
761 So. 2d 454, 2000 WL 726486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pandya-v-israel-fladistctapp-2000.