Providence Venture, Inc. v. Hillsborough County

49 Fla. Supp. 2d 130
Circuit Court for the Judicial Circuits of Florida·Decided July 18, 1991·No. Case No. 89-22200·Published

Opinion

OPINION OF THE COURT

GUY W. SPICOLA, Circuit Judge.

[131]*131 ORDER ON HILLSBOROUGH COUNTY’S MOTION TO DISMISS COUNT TWO OF PROVIDENCE VENTURE INC.’S SECOND AMENDED COMPLAINT, OR, IN THE

ALTERNATIVE, MOTION TO STRIKE AND FOR A MORE DEFINITE STATEMENT

This cause is before the court on Defendant HILLSBOROUGH COUNTY’S (“COUNTY”) Motion to Dismiss Count Two of PROVIDENCE VENTURE, INC.’s (“PROVIDENCE”) Second Amended Complaint. Both parties have submitted written memoranda. The court has carefully considered the motion and memoranda, reviewed its files, conducted its own research, and is otherwise fully advised in the premises.

I. BACKGROUND FACTS

This Court’s Order of April 8, 1991, [See, 47 Fla. Supp.2d 180] dismissed Count Two of PROVIDENCE’S Amended Complaint, with leave to amend. By the same order, the court denied the COUNTY’S request that Count Three for Quantum Meruit be dismissed.

PROVIDENCE submitted a Second Amended Complaint on April 24, 1991, amending Count Two to allege Equitable Estoppel. On May 3, 1991, the COUNTY moved to dismiss Count Two of the Second Amended Complaint and submitted a memorandum in support thereof. The COUNTY argues that equitable estoppel may not properly be raised as an affirmative claim for relief to recover money damages. The COUNTY further contends that any possible claim against the county for relief under equitable estoppel would be barred by sovereign immunity. Finally, the COUNTY maintains that the representations asserted by PROVIDENCE are inadequate as a matter of law, and, therefore, Count Two should be dismissed or, alternatively, the inadequate allegations should be stricken or PROVIDENCE should be required to provide a more definite statement.

On May 15, 1991, PROVIDENCE submitted a memorandum in response to the COUNTY’S motion to dismiss. PROVIDENCE refutes the COUNTY’S arguments and states that equitable estoppel is recognized as an affirmative cause of action, sovereign immunity does not bar this equitable estoppel claim, and the allegations contained in Count Two are sufficient as a matter of law.

At the suggestion of Counsel for plaintiff and defendant the court has agreed to decide the COUNTY’S motion on the written memoranda submitted without holding a formal hearing. The court will address each allegation separately. As stated in the court’s order of April 8, 1991, in considering a motion to dismiss, the court will assume all well-pleaded facts to be true and will decide the motion on the [132]*132questions of law only, keeping to the allegations contained within the complaint. Kaufman v A-1 Bus Lines, Inc., 363 So.2d 61 (Fla. 3d DCA 1978). The court will not grant a motion to dismiss if the pleader sets forth facts in his complaint upon which relief can be granted on any theory. Orlovsky v Solid Surf, Inc., 405 So.2d 1363 (Fla. 4th DCA 1981).

II. EQUITABLE ESTOPPEL AS AN AFFIRMATIVE CAUSE OF ACTION

The COUNTY argues that estoppel may only be used defensively and may not properly be raised as an affirmative claim for relief. Although the COUNTY recognizes that a few cases have permitted equitable estoppel to be raised affirmatively, the COUNTY urges the court to distinguish these cases on their facts and on the type of relief being sought.

The COUNTY first discusses Investors Syndicate v Indian Rocks Beach, 434 F.2d 871 (5th Cir. 1970). The COUNTY maintains that although the Indian Rocks court recognized an affirmative claim of equitable estoppel, the case actually involved promissory estoppel, and, therefore, the court’s language should be read as only permitting an affirmative claim for promissory estoppel.

The COUNTY’S interpretation of the case is not convincing. Contrary to the COUNTY’S assertion, the facts of the Indian Rocks case do not suggest that the representations at issue should be considered “promises.” In Indian Rocks investors were seeking to enforce the city’s representations that certain bonds would be redeemed by excess funds before the bonds’ stated maturity date. The investors relied on printed statements in the prospectus and in a written opinion prepared by the bond-approving attorneys. These representations apparently formed part of the bargain between the parties and there is no foundation for this court to characterize them as the type of gratuitous promise enforceable under promissory estoppel. On the contrary, the Indian Rocks court held that these representations presented a clear basis for equitable estoppel. Therefore, the Indian Rocks case distinctly stated that equitable estoppel may be raised affirmatively.

The COUNTY also attempts to distinguish Sakolsky v Coral Gables, 151 So.2d 433 (Fla. 1963) in which the Florida Supreme Court recognized that the doctrine of equitable estoppel may be raised affirmatively to prevent a municipality from arbitrarily rescinding a permit. The COUNTY maintains that the Sakolsky case is limited to claims for injunctive relief and would not apply to an estoppel claim for money damages. However, Florida law does permit damages to be recovered under an equitable estoppel theory. Noble v Yorke, 490 [133]*133So.2d 29 (Fla. 1986); Godbey v Dresner, 492 So.2d 800 (Fla. 2d DCA 1986) (Doctrine of equitable estoppel applied to permit dog-bite victims to seek damages from property owners). Therefore, the COUNTY is not entitled to a dismissal of this count on the ground that money damages are not recoverable under equitable estoppel.

The above cases evidence that some Florida courts have allowed equitable estoppel to be raised as an affirmative claim for relief. However, as the court’s order of April 8, 1991 states, the law is not well-settled on this point. The COUNTY cites to a number of Florida cases which state that equitable estoppel may not properly be raised affirmatively. Crown Life Insurance Co. v McBride, 517 So.2d 660 (Fla. 1988); Matter of Simimich v Dickman, 71 Bankr. 48 (M.D. Fla. 1987) ; Raymond v Halifax Hospital Medical Center, 466 So.2d 253 (Fla. 5th DCA 1985); Waterman Memorial Hospital Assoc., Inc. v Div. of Retirement, Dept. of Administration, 424 So.2d 57 (Fla. 1st DCA 1982).

These cases, however, have little application herein. The Crown Life and Halifax Hospital cases are readily distinguishable in that they apply only to insurance coverage and merely hold that waiver and estoppel cannot be used to create or broaden coverage of an insurance policy. Similarly, the Waterman Memorial Hospital case is limited to the facts therein. Under the facts of Waterman, the appellee argued that estoppel applied against itself. The Waterman court refused to allow the appellee to use estoppel against itself as a “sword” to gain an advantage over the appellant. Id. at 60. The Waterman case is inapplicable herein. The facts in Waterman are clearly distinguishable from those in the case at bar, where the plaintiff is claiming equitable estoppel against the county.

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Providence Venture, Inc. v. Hillsborough County, 49 Fla. Supp. 2d 130 (Fla. Super. Ct. 1991).

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