Sunshine Properties, L.L.C. v. State Department of Transportation

900 So. 2d 714, 2005 Fla. App. LEXIS 5981, 2005 WL 957060
CourtDistrict Court of Appeal of Florida
DecidedApril 27, 2005
DocketNo. 4D04-869
StatusPublished
Cited by1 cases

This text of 900 So. 2d 714 (Sunshine Properties, L.L.C. v. State Department of Transportation) 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
Sunshine Properties, L.L.C. v. State Department of Transportation, 900 So. 2d 714, 2005 Fla. App. LEXIS 5981, 2005 WL 957060 (Fla. Ct. App. 2005).

Opinion

WARNER, J.

Sunshine Properties appeals the trial court’s order interpreting Sunshine’s condemnation settlement with the Department of Transportation as requiring it to apportion part of the agreed settlement amount to compensate its lessees for their trade fixtures. We hold that the agreement between only Sunshine and DOT, and not the lessees, included only Sunshine’s condemnation damages. Even though the settlement was “subject to apportionment, if any,” it did not constitute a settlement of the lessees’ damages through payment to Sunshine.

DOT filed an eminent domain action against Sunshine in which it requested that two parcels of property be condemned in order to allow construction of a state transportation facility. It also, named in the suit, .among others, the holder of a mortgage on the property and Awesome Enterprises and Mirábales Tile, lessees of the property. Sunshine and both lessees answered the complaint, and each-claimed damages — Sunshine for the land and buildings, together with remainder damages and costs to cure, and the lessees for their business damages and improvements on the condemned property. Counsel for Sunshine also represented Mirábales Tile. Other counsel represented Awesome.

Rather than going to trial, DOT and Sunshine agreed to settle Sunshine’s claims in mediation. No other parties attended the mediation. The parties agreed in pertinent part:

Petitioner will pay to Defendant(s), Sunshine Properties, L.L.C., the sum of $1,920,000 in full settlement of all claims for compensation from Petitioner whatsoever, including statutory interest, but excluding attorney’s fees, experts [sic] fees, and costs. Said sum will be subject to claims for apportionment, if any.

An addendum to the agreement stated that the compensation to Sunshine was to “be allocated as follows: $1,082,880.00 for land and buildings taken and $837,120.00 for remainder damages and cost to cure”.

The trial court entered a stipulated order of taking, providing that DOT was to deposit the settlement amount and permitting Sunshine to withdraw the funds deposited. Sunshine withdrew all of the funds deposited without objection by any party.

[716]*716In the meantime, litigation proceeded between DOT, Awesome, and Mirábales. In a joint pre-trial stipulation, one of the disputed issues of fact listed was Awesome’s claim for trade fixtures on the property. Mirábales settled its business damage claim with DOT. Just prior to the trial with Awesome, DOT filed a motion in limine to preclude evidence of loss of trade fixtures, claiming that this was properly sought from the Sunshine settlement amount. It does not appear that a written ruling was secured on this motion. In a jury trial, Awesome Enterprises was awarded $1,135,000 as full payment for its business damages. No mention in the final judgment was made of a claim for fixtures. Awesome Enterprises then filed a motion to determine apportionment rights in which it requested the court determine whether DOT or Sunshine was responsible to compensate it for immovable trade fixtures and leasehold improvements that were acquired by DOT in the taking. Sunshine filed a motion asking the court to find DOT responsible for compensating Awesome Enterprises and Mira-bales Tile for trade fixtures. Sunshine argued that the tenants’ compensation for trade fixtures was not part of the mediated settlement because the tenants were not parties to the mediation. The amount of the settlement was solely paid to Sunshine for its damages. The court ruled that Sunshine was responsible for the trade fixture and leasehold improvement claims because the settlement agreement stated that the sum was “subject to claims for apportionment, if any.” Sunshine appeals this order as it terminates DOT’S obligations in the case.

Mirabales’s lease with Sunshine contains the following clause regarding eminent domain:

Eminent Domain. If the premises or any part thereof or any estate therein, or any other part of the building materially affecting Lessee’s use of the premises, shall be taken, by eminent domain, this lease shall terminate on the date when the title vests pursuant to such taking. The rent, and any additional rent, shall be apportioned as of the termination date, and any rent paid for any period beyond that date shall be repaid to Lessee. Lessee shall not be entitled to any' part of the award for such taking or any payment in lieu thereof, but Lessee may file a claim for any taking of fixtures and improvements owned by Lessee, and for moving expenses.

Awesome’s lease contains a different provision. It states:

If the whole or any substantial part of the premises shall be condemned by eminent domain for any public or quasi-public purpose, Tenant shall have the option of terminating the lease if it no longer remains viable for use as a business premises. Landlord shall be entitled to the portion of the condemnation award for the loss of land, severance damages or loss of improvements. Tenant shall be entitled to any condemnation award for business damages, loss of fixtures, (moveable or immovable) and relocation or other similar benefits paid for the loss or relocation of the business. If less than a substantial part of the premises is condemned, the Lease shall not automatically terminate, but rent shall abate in proportion to the portion of the premises condemned. In the event of a partial taking, the Landlord and Tenant shall be entitled to those portions of the condemnation award expressed above.

Neither lease gives the tenant the right to collect its damages from the land owner when the land subject to the lease is condemned. Mirabales’s lease specifically excludes any right to a portion of Sunshine’s [717]*717taking award, although it recognizes Mira-bales’s right to make its own claim for damages. Awesome’s lease permits the tenant to obtain business damages, loss of fixtures, and relocation expenses, while the landlord is entitled to the award for loss of land, severance, and improvements. Because Sunshine’s settlement was allocated only to land and severance damages, it did not .contain an “award” of any damages to which Awesome might be entitled under the lease. Thus, even though Sunshine’s award was “subject to apportionment, if any,” in this case, under the language of the lease clauses there may be no amount to apportion to the tenants. As argued by Sunshine, the lessees were not parties to the mediation or settlement agreement. Sunshine did not represent their interests and could not settle their claims for them. See e.g., Woodfield Plaza, Ltd. v. Stiles Const. Co., 687 So.2d 856, 857 (Fla. 4th DCA 1997) (noting that parties to settlement agreement must mutually agree to its terms).

DOT contends that compensation for trade fixtures was included in the agreement because “[t]he general rule for valuation of property subject to a leasehold interest is to ascertain the entire compensation as though the estate belongs to one person and is unencumbered.” Dep’t of Transp. v. Allen, 447 So.2d 1383, 1385 (Fla. 5th DCA 1984). In Allen, the court quoted from 4 Nichols on Eminent Domain § 13.35[2] (3d Ed.1978),

Although the general rule regarding removable tenant fixtures is that they are not to be valued separately as personal property but are taken into account insofar as they enhance the value of the realty, it would seem.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Orlando/Orange County Expressway Authority v. Tuscan Ridge, LLC
84 So. 3d 410 (District Court of Appeal of Florida, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
900 So. 2d 714, 2005 Fla. App. LEXIS 5981, 2005 WL 957060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunshine-properties-llc-v-state-department-of-transportation-fladistctapp-2005.