Town of Ponce Inlet v. Pacetta, LLC

120 So. 3d 27, 2013 Fla. App. LEXIS 10752, 2013 WL 3357520
CourtDistrict Court of Appeal of Florida
DecidedJuly 5, 2013
DocketNo. 5D12-1982
StatusPublished
Cited by4 cases

This text of 120 So. 3d 27 (Town of Ponce Inlet v. Pacetta, 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
Town of Ponce Inlet v. Pacetta, LLC, 120 So. 3d 27, 2013 Fla. App. LEXIS 10752, 2013 WL 3357520 (Fla. Ct. App. 2013).

Opinion

PALMER, J.

The Town of Ponce Inlet appeals the portion of the non-final order entered by the trial court finding in favor of Pacetta, LLC., Down The Hatch, Inc., and Mar-Tim, Inc., (hereinafter collectively referred to as “Pacetta”) on their claim for damages under the Bert J. Harris, Jr. Private Property Rights Protection Act (Harris Act), [28]*28section 70.001, Florida Statutes (2009).1 Determining that the trial court erred in finding Ponce Inlet liable to Pacetta under the Harris Act, we reverse.

In its order, the trial court set forth the following summary of the facts underlying this lawsuit:

[Pacetta has] assembled a piece of riverfront real property on the shores of the Halifax River in Ponce Inlet, Florida, consisting of approximately 16 acres. The congruent waterfront property and two small adjoining residential parcels were acquired by Pacetta LLC, Down the Hatch Inc., and Mar-Tim, Inc., between June 14, 2004 and May 10, 2006.
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[Pacetta’s] claims assert that between June, 2004 and November 18, 2008, there had developed a beneficial relationship with the Town, its council, its planning department and, for the most part, with its citizens. In short summary, as a result of the communications and representations by and between the parties, a casual observer might conclude that a delightful mixed use planned waterfront development was to be approved by the Town sometimes referred to as the Villages of Ponce Park.
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Nonetheless, approval for the project did require appropriate changes in the Comprehensive Land-Use Plan and land use development code regulations consistent with the discussions that the parties had over that long period of time.
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[T]he Comprehensive Land-Use Plan was in its renewal cycle and submitted to the State for approval in early 2008. All of the extensive planning was done, approved, submitted and agreed to by the State subject to its objections, recommendations and comments. The approval of the Comprehensive Land-Use Plan would be the first step in any land development changes to allow for the mixed use that the parties had come to desire. The new comprehensive plan was amended to address the objections by the State so it was in a form that, upon final reading and approval, would have essentially been approved by the State and become final which was until 2008, the apparent intention of all concerned. In 2008, there was a referendum passed motivated by opposition to the project and the three commissioners were elected who had announced opposition to the project. In November of 2008, when the [Comprehensive Land-Use Plan] was up for its final approval, the plan as originally expected by [Pa-cetta] was defeated based on a vote of the outgoing council.

After the proposed 2008 amendment to Ponce Inlet’s Comprehensive Land-Use Plan was defeated, Pacetta filed suit against Ponce Inlet asserting several claims for relief, including a claim for damages under the Harris Act.

The Harris Act enables property owners to seek relief, which may include compensation for the actual loss to the fair market value of its real property caused by government action, when a “specific action of a governmental entity has inordinately burdened ... a vested right to a specific use of real property”. § 70.001(2). The Act defines the term “action of a governmental entity” as meaning “a specific ac[29]*29tion of a governmental entity which affects real property”. § 70.001(3)(d). The Act further defines the term “inordinate burden” as meaning, inter alia, government action that restricts or limits a vested right to a specific use of the property. § 70.001(3)(e). A vested right can be established through the application of the principle of equitable estoppel. § 70.001(3)(a).

The matter proceeded to a non-jury trial. Upon review of the evidence presented, the trial court entered judgment in favor of Pacetta, holding:

[Pacetta has] established by equitable estoppel a vested right to have the Town include in its Comprehensive Land-Use Plan dealing with the 16 acre Pacetta Group property the terms originally approved upon first reading [of the 2008 amendment to the Comprehensive Land-Use Plan].

This appeal timely followed.

Ponce Inlet argues that the trial court erred, as a matter of law, in granting Pacetta relief under the Harris Act on the basis of equitable estoppel. We agree.

A trial court’s legal conclusions, reached following a non-jury trial, are reviewed de novo. Acoustic Innovations, Inc. v. Schafer, 976 So.2d 1139, 1143 (Fla. 4th DCA 2008).

In order to prevail on its Harris Act claim, Pacetta was required to prove that an action by Ponce Inlet constituted an inordinate burden to a vested right regarding the use of its properties. The trial court concluded that Pacetta sustained its burden of proof because Pacetta’s vested right to develop its properties, as negotiated by the parties, was created by the application of the principle of equitable estoppel.

In Citrus County v. Halls River Development, Inc., 8 So.3d 413 (Fla. 5th DCA 2009), our court explained the principle of equitable estoppel as follows:

The doctrine of equitable estoppel may be invoked against a governmental body when a property owner (1) relying in good faith (2) upon some act or omission of the government (3) has made such a substantial change in position or incurred such extensive obligations and expenses that it would be highly inequitable and unjust to destroy the rights that the owner has acquired. Verizon Wireless Pers. Commc’ns, L.P. v. Sanctuary at Wulfert Point Cmty. Ass’n, 916 So.2d 850, 856 (Fla. 2d DCA 2005). However, estoppel should be invoked against the government only in exceptional circumstances. Watson Clinic, LLP v. Verzosa, 816 So.2d 832, 834 (Fla. 2d DCA 2002). And, most importantly, the doctrine of estoppel does not generally apply to transactions that are forbidden by law or contrary to public policy. Montsdoca v. Highlands Bank & Trust Co., 85 Fla. 158, 95 So. 666, 668 (1923); Dade County v. Gayer, 388 So.2d 1292, 1294 (Fla. 3d DCA 1980).

Id. at 421-22. We then analyzed the principle as applied to a Harris Act claim.

In that case, Citrus County appealed the trial court’s order determining that the County was liable under the Harris Act because it had inordinately burdened real property owned by Halls River Development, Inc. Of relevance to the instant appeal, Citrus County’s Comprehensive Plan originally designated the property at issue as being mixed use (MXU), which permitted construction of multifamily condominiums. However, the County later amended its Comprehensive Plan, changing the property’s classification from MXU to Low Intensity Coastal and Lakes (CL), which restricted development to one unit per twenty acres of real property. Four years after the County amended its Comprehen[30]*30sive Plan, Halls River purchased the property at issue, and received government assurances that development of a condominium complex was a proper use for the property.

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Related

Town of Ponce Inlet v. Pacetta, LLC
226 So. 3d 303 (District Court of Appeal of Florida, 2017)
Bair v. City of Clearwater, Florida
196 So. 3d 577 (District Court of Appeal of Florida, 2016)

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Bluebook (online)
120 So. 3d 27, 2013 Fla. App. LEXIS 10752, 2013 WL 3357520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-ponce-inlet-v-pacetta-llc-fladistctapp-2013.