Stonepeak Partners, LP v. Tall Tower Capital, LLC

CourtDistrict Court of Appeal of Florida
DecidedAugust 11, 2017
Docket2D16-4204
StatusPublished

This text of Stonepeak Partners, LP v. Tall Tower Capital, LLC (Stonepeak Partners, LP v. Tall Tower Capital, LLC) 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
Stonepeak Partners, LP v. Tall Tower Capital, LLC, (Fla. Ct. App. 2017).

Opinion

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED

IN THE DISTRICT COURT OF APPEAL OF FLORIDA SECOND DISTRICT

STONEPEAK PARTNERS, LP, ) ) Appellant, ) ) v. ) Case No. 2D16-4204 ) TALL TOWER CAPITAL, LLC, ) ) Appellee. ) ___________________________________ )

Opinion filed August 11, 2017.

Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for Polk County; Andrea Teves Smith, Judge.

Christine Marlewski (withdrew after briefing) and Brian K. Oblow (substituted as counsel of record) of Gray Robinson, P.A., Tampa, and Joseph M. McLaughlin of Simpson, Thacher & Bartlett, LLP, New York, for Appellant.

Robert L. Rocke and Raul Valles of Rocke, McLean & Sbar, P.A., Tampa, for Appellee.

SILBERMAN, Judge.

Stonepeak Partners, LP, appeals an order denying its motion to dismiss

for lack of personal jurisdiction in this action brought by Tall Tower Capital, LLC, for

breach of contract and breach of fiduciary duty. Because the trial court erred in determining that Tall Tower established jurisdiction based upon the grounds that

Stonepeak committed a tortious act in Florida and engaged in a business venture in

Florida, we reverse and remand for the trial court to dismiss the action.

Stonepeak is an investment firm incorporated under the laws of Delaware

with offices and its principal place of business in New York. Stonepeak has no office,

employees, or clients in Florida. Tall Tower is a Florida firm headquartered in Lakeland,

Florida, that manages broadcast towers and communications infrastructure throughout

the United States. Tall Tower solicited Stonepeak in New York to invest in broadcast

towers that were being offered for sale by CC Media Holdings, Inc. (Clear Channel), a

Texas company. Clear Channel planned to sell 472 broadcast towers, and 436 of those

towers were located outside Florida.

In January 2014, Stonepeak and Tall Tower entered into a confidentiality

and noncircumvention agreement (the Confidentiality Agreement) concerning the Clear

Channel transaction. The Confidentiality Agreement did not require Stonepeak "to enter

into any business relationship or transaction" or "to deal with" Tall Tower. Tall Tower

employees regularly made visits to New York to discuss the Clear Channel transaction,

and the parties communicated frequently by email. Stonepeak employees or its agents

made four visits to Florida regarding the Clear Channel transaction. Tall Tower and

Stonepeak negotiated with Clear Channel for almost a year, but their bid was

unsuccessful.

During the course of the negotiations, Stonepeak made an equity

investment in Vertical Bridge Holding, LLC, a Florida company, and acquired a

seventeen percent interest in Vertical Bridge. As a managing director of Stonepeak,

-2- Trent Vichie serves on boards of directors of "portfolio companies" in which Stonepeak

has an ownership interest. Vichie served on Vertical Bridge's board of directors as a

representative of Stonepeak. Vertical Bridge had the successful bid in the Clear

Channel sale.

Tall Tower subsequently filed its complaint, alleging that Stonepeak

breached the Confidentiality Agreement and breached its fiduciary duty. Tall Tower

alleged that by virtue of the Confidentiality Agreement the parties were "engaged as

joint venturers." It further alleged that the fiduciary duty "arose as a result of the

[Confidentiality] Agreement and the parties' joint negotiations with Clear Channel."

Stonepeak filed a motion to dismiss for lack of personal jurisdiction and

submitted affidavits from Stonepeak's Trent Vichie and Luke Taylor in support. Tall

Tower opposed the motion and filed a supporting affidavit from Robert Harper, a

managing member of Tall Tower. The trial court determined that the affidavits were in

factual conflict and that a limited evidentiary hearing was required. See Canale v.

Rubin, 20 So. 3d 463, 469 (Fla. 2d DCA 2009). After an evidentiary hearing, the trial

court entered an order denying the motion to dismiss. Stonepeak contends that the trial

court erred in determining that Stonepeak is subject to personal jurisdiction in Florida

based on section 48.193(1)(a)(2), Florida Statutes (2013), for committing a tortious act

in Florida and on section 48.193(1)(a)(1) for engaging in a business venture in Florida.

Section 48.193(1)(a)(2)—Committing a Tortious Act in Florida

Personal jurisdiction under Florida's long-arm statute may be general or

specific, depending on the nature of the defendant's contacts with Florida. Wiggins v.

Tigrent, Inc., 147 So. 3d 76, 85 (Fla. 2d DCA 2014). Section 48.193(1)(a)(2) of Florida's

-3- long-arm statute applies to a lawsuit "arising from" a person "[c]ommitting a tortious act

within this state." Such a lawsuit is based on specific jurisdiction. See Wiggins, 147 So.

3d at 86. Tall Tower alleged that Stonepeak committed a tortious act in Florida by

breaching its fiduciary duty to Tall Tower.

At an evidentiary hearing on personal jurisdiction, the evidence must

establish jurisdiction by a preponderance of the evidence. See Passy v. Lewis, 553 So.

2d 223, 224 (Fla. 1st DCA 1989). We typically conduct a de novo review of an order on

a motion to dismiss for lack of personal jurisdiction. See Rautenberg v. Falz, 193 So.

3d 924, 928 (Fla. 2d DCA 2016); Dev. Corp. of Palm Beach v. WBC Constr., L.L.C., 925

So. 2d 1156, 1160 (Fla. 4th DCA 2006). But when the trial court relies on witness

testimony, we defer to the trial court's determination of witness credibility. Dev. Corp.,

925 So. 2d at 1160. We then apply the facts to the law based on de novo review. Id.

In Venetian Salami Co. v. Parthenais, 554 So. 2d 499, 502 (Fla. 1989), the

Florida Supreme Court set forth the two-step analysis necessary to determine whether

the trial court has personal jurisdiction over a nonresident defendant. See Rautenberg,

193 So. 3d at 928. The trial court must first determine whether the complaint alleges

sufficient jurisdictional facts to bring the action within the ambit of the long-arm statute.

Id. If it does, then the trial court must determine whether sufficient minimum contacts

are shown to satisfy due process requirements. Id. Tall Tower alleged acts to establish

specific jurisdiction under the long-arm statute of committing a tortious act in Florida and

engaging in a business venture in Florida. See § 48.193(1)(a)(1), (1)(a)(2). Specific

jurisdiction also "requires a causal connection between the defendant's activities in

Florida and the plaintiff's cause of action, a requirement known as 'connexity.' " Canale,

-4- 20 So. 3d at 466 (quoting Wendt v. Horowitz, 822 So. 2d 1252, 1260 (Fla. 2002)). The

long-arm statute is to be strictly construed in favor of the nonresident defendant. Navas

v. Brand, 130 So. 3d 766, 770 (Fla. 3d DCA 2014).

Because the tort alleged is breach of a fiduciary duty, Stonepeak must be

shown to owe a fiduciary duty to Tall Tower. A fiduciary relationship does not exist in an

arms' length transaction. Mac-Gray Servs., Inc. v. DeGeorge, 913 So. 2d 630, 633 (Fla.

4th DCA 2005); Taylor Woodrow Homes Fla., Inc. v.

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