Robeson v. Melton

52 So. 3d 676, 2009 Fla. App. LEXIS 17256, 2009 WL 3837209
CourtDistrict Court of Appeal of Florida
DecidedNovember 18, 2009
DocketNo. 4D09-2552
StatusPublished
Cited by1 cases

This text of 52 So. 3d 676 (Robeson v. Melton) 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
Robeson v. Melton, 52 So. 3d 676, 2009 Fla. App. LEXIS 17256, 2009 WL 3837209 (Fla. Ct. App. 2009).

Opinion

STEVENSON, J.

McDonald’s USA, L.L.C., and Charles Robeson, defendants below (collectively “Defendants”), seek certiorari review of a non-final order, denying, in part, their motion to stay the proceedings in favor of a federal lawsuit, which McDonald’s previously filed against Keith Melton, Mark Watson, and Melton Management, Inc. (“the Melton group”). The order granted a stay in favor of McDonald’s, but denied the stay as to Robeson. Defendants challenge that part of the order that denied the stay as to Robeson. We grant the petition.

The federal action

The facts involving the two lawsuits are somewhat lengthy, but are summarized for our analysis. On November 18, 2008, McDonald’s filed an action against the Melton group in the United States District Court for the Middle District of Florida for breach of a release agreement, declaratory judgment, and damages for violation of Florida’s anti-wiretapping law. McDonald’s federal complaint alleged that the Melton group operated certain franchises in Florida. McDonald’s breach of contract count alleged that when the Melton group began complaining about the financial performance of their franchise in Delray Plaza, McDonald’s agreed to provide financial [677]*677assistance in the form of temporary rent reduction and a lump sum distribution, but required the Melton group to execute a general release. McDonald’s further alleged that, immediately prior to execution of the release, representatives of the Melton group met with Robeson, expressing concern over whether Baywinds, another franchise scheduled to open in December, would generate sufficient sales. Robeson told them they did not have to accept Baywinds if they were concerned, but the Melton group accepted it nonetheless. Less than three months later, they began to complain about the performance of that restaurant. Subsequently, the Melton group demanded that McDonald’s compensate them for losses at the two restaurants and the reduction in value of other franchises, which they had been operating pri- or to signing the release. McDonald’s refused to comply, and the Melton group retained counsel and threatened to sue. McDonald’s sought damages for the alleged breach of the release agreement.

McDonald’s second count was for declaratory relief, asserting that the Melton group’s position — that Robeson offered permanent rent relief and made representations creating a fiduciary relationship— would essentially rewrite the franchise agreement, which states that McDonald’s makes no representations as to the profitability of a restaurant. Count three claimed that the Melton group recorded their conversations with Robeson concerning the franchises without the authorization of Robeson or McDonald’s, in violation of Florida’s anti-wiretapping law.

The state action

On December 28, 2008, more than a month after McDonald’s filed its lawsuit in federal court, the Melton group filed this circuit court action against McDonald’s and Robeson, alleging that Robeson, a vice president of McDonald’s, accepted personal responsibility for the failure of one new franchise to meet projections, its impact on an existing one, and the prospective similar failure of a newer franchise and its prospective impact on another existing one. Robeson allegedly represented, on behalf of McDonald’s, that he would make the Melton group “whole” as to lost income and lost value as to those franchises, but he never did. The eight-count complaint filed from this nucleus of facts includes claims against Robeson for breach of fiduciary duty, fraud and misrepresentation, claims against McDonald’s for vicarious liability based on Robeson’s conduct, and claims against both Robeson and McDonald’s for fraud in the inducement and tortious interference with prospective business advantage in connection with the proposed sale of some of its franchises, which their actions allegedly defeated.

The federal action was filed and served first. After filing the instant state court action, the Melton group, defendants in the federal action, moved to dismiss and/or stay the federal action, claiming it would not resolve all the issues between the parties, but all the parties were before the Florida court (including Robeson, who was not a party to the federal action); McDonald’s had filed first in order to forum shop a case that otherwise could not be removed to federal court; there were no federal issues in the case; the Florida court could determine the rights and liabilities of all the parties; and factual issues predominated.

Defendants filed their motion to stay the proceedings in state court, due to the pen-dency of the earlier-filed federal action, citing authority that a subsequently filed state action should be stayed when a previously filed federal action is pending between substantially the same parties on substantially the same issues. They represented that the federal court was in the [678]*678process of considering the Melton group’s motion to stay or dismiss the federal lawsuit, which was fully briefed. In its response in opposition to that motion, McDonald’s took the position that the fact that Robeson was not a party was not significant, as the federal court could exercise supplemental jurisdiction over any claim that the Melton group sought to assert against him.

In the state court action, the Melton group opposed Defendants’ motion to stay proceedings, contending Robeson was hoping to escape liability; McDonald’s was engaged in forum shopping; the parties were not identical; the claims were different; and McDonald’s had filed two frivolous claims in a case which could not have been removed to federal court because Robeson is a Florida resident. The Melton group further argued that the only federal claim similar to the Florida claims is the claim by McDonald’s for declaratory judgment, in which it attempted to anticipate the claims which the Melton group would file against it, and was, therefore, better suited for a defense. The Melton group suggested that the federal court would likely stay or dismiss the action after properly considering the appropriate factors enunciated in Ameritas Variable Life Insurance Co. v. Roach, 411 F.3d 1328 (11th Cir.2005), describing when a federal court should decline to exercise discretionary jurisdiction of a declaratory action in favor of a subsequently filed parallel state court action.1

The trial court granted the stay as to McDonald’s, but denied the motion as to Robeson and ordered him to respond to the amended complaint within ten days. Defendants sought certiorari relief and this court has accepted jurisdiction. REWJB Gas Invs. v. Land O’ Sun Realty, Ltd., 643 So.2d 1107, 1108 (Fla. 4th DCA 1994) (reviewing order staying eviction case, pending the outcome of another suit, and denying certiorari relief), rev. dismissed sub nom. Williams v. Williams, 651 So.2d 1197 (Fla.1995); see also Pilevsky v. Morgans Hotel Group Mgmt., LLC, 961 So.2d 1032, 1033 n. 1 (Fla. 3d DCA 2007) (quashing order denying stay, where previously filed New York lawsuit would resolve most of the issues in the action).

First, Defendants argue that one court ordinarily will not consider a controversy over which another court has already obtained jurisdiction. Shooster v. BT Orlando Ltd. P’ship, 766 So.2d 1114, 1115 (Fla. 5th DCA 2000). This principle promotes comity between courts and prevents unnecessary litigation. Hirsch v. DiGaetano, 732 So.2d 1177, 1178 (Fla.

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Bluebook (online)
52 So. 3d 676, 2009 Fla. App. LEXIS 17256, 2009 WL 3837209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robeson-v-melton-fladistctapp-2009.