Tropical Soup Corporation v. City of Key West

CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 31, 2021
Docket21-10459
StatusUnpublished

This text of Tropical Soup Corporation v. City of Key West (Tropical Soup Corporation v. City of Key West) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tropical Soup Corporation v. City of Key West, (11th Cir. 2021).

Opinion

USCA11 Case: 21-10459 Date Filed: 08/31/2021 Page: 1 of 7

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 21-10459 Non-Argument Calendar ________________________

D.C. Docket No. 4:20-cv-10132-KMM

TROPICAL SOUP CORPORATION,

Plaintiff-Appellant,

versus

CITY OF KEY WEST, a Florida municipal corporation, TROPICAL SHELL & GIFTS, INC.,

Defendants-Appellees. ________________________

Appeal from the United States District Court for the Southern District of Florida ________________________

(August 31, 2021)

Before JORDAN, GRANT, and BRASHER, Circuit Judges.

PER CURIAM:

Tropical Soup Corporation appeals the district court’s dismissal of its 42

U.S.C. § 1983 suit against the City of Key West. Tropical Soup argues that the USCA11 Case: 21-10459 Date Filed: 08/31/2021 Page: 2 of 7

district court (1) erred in determining that no contract existed between Tropical Soup

and the city for the lease of a parcel of city-owned property, and that Tropical Soup

therefore lacked any interest in the property; and (2) erred in failing to address its

equal protection claim. After careful consideration, we affirm.

I. BACKGROUND

Tropical Soup is a Florida corporation with its principal place of business in

Key West. In 2010, the city of Key West issued a public notice seeking proposals

for the lease, renovation, and operation of two parcels of city-owned land in Mallory

Square. The city commission liked Tropical Soup’s proposal and authorized the City

Manager to begin negotiating the terms of the lease. Over the next ten years, Tropical

Soup worked with the city to conform its development plans to the city’s

specifications. About ten years into the negotiations, the city sent a potential lease

agreement to Tropical Soup for review. Before the lease was executed, however, the

city’s planning board passed a resolution imposing additional conditions on its

approval of the project. One of those conditions required Tropical Soup and the city

to reach an agreement with another of the city’s lessors, Tropical Shell & Gifts, Inc.,

regarding a disputed parcel that might have been part of a lease to Tropical Shell. A

few weeks later, the city commission of Key West passed a resolution directing the

City Manager to cease negotiations with Tropical Soup.

2 USCA11 Case: 21-10459 Date Filed: 08/31/2021 Page: 3 of 7

Tropical Soup sued the city in the United States District Court for the Southern

District of Florida. It alleged that the city had deprived it of a property interest

without due process of law and violated its constitutional guarantee of equal

protection. Tropical Soup sought relief in the form of damages, specific

performance, and promissory estoppel. The district court dismissed with prejudice

Tropical Soup’s complaint for failure to state a claim. Tropical Soup timely

appealed.

II. STANDARD OF REVIEW

We review a district court’s dismissal of a complaint for failure to state a claim

de novo and accept the allegations in the complaint as true, construing them in the

light most favorable to the plaintiff. Henderson v. McMurray, 987 F.3d 997, 1001

(11th Cir. 2021). A motion to dismiss for failure to state a claim tests whether the

plaintiff’s factual allegations, taken as true, sufficiently “state a claim to relief that

is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). On a motion to

dismiss, the plaintiff is entitled to all reasonable inferences in its favor. Sebastian v.

Ortiz, 918 F.3d 1301, 1307 (11th Cir. 2019). But if the plaintiff’s allegations conflict

with the attached exhibits, the exhibits control. See Griffin Industries, Inc. v. Irvin

496 F.3d 1189, 1206 (11th Cir. 2007).

III. DISCUSSION

3 USCA11 Case: 21-10459 Date Filed: 08/31/2021 Page: 4 of 7

Tropical Soup makes two arguments in support of its claim that the city

deprived it of its property rights. First, Tropical Soup argues that it formed a binding

contract with the city despite the absence of an executed lease. Second, Tropical

Soup argues that the city treated it differently from similarly situated parties when it

ended negotiations for the Mallory Square properties. We address each in turn.

First, even viewing Tropical Soup’s allegations in a favorable light, its

contract argument fails. Tropical Soup concedes that the lease agreement was never

executed. It nevertheless contends that a contract existed because the city’s proposed

terms constituted a formal offer, which it then accepted, forming a binding contract.

This argument fails for two reasons. First, Florida law does not recognize oral

contracts for leases of land for more than one year. Fla. Stat. Ann. § 725.01. Here,

the proposed agreement contained a lease term of ten years. Second, Florida courts

do not enforce oral or implied contracts against municipalities because “a

municipality waives the protections of sovereign immunity only when it enters into

an express contract.” See City of Fort Lauderdale v. Israel, 178 So.3d 444, 447 (Fla.

Dist. Ct. App. 2015). When a contract is not mutually enforceable or “provides no

remedy by way of enforcement,” it is illusory. Florida Dep't of Environmental. Prot.

v. ContractPoint Florida Parks, LLC, 986 So. 2d 1260, 1270 (Fla. 2008) (citing Pan-

Am Tobacco Corp. v. Department of Corrections, 471 So.2d 4, 5 (Fla. 1984)).

4 USCA11 Case: 21-10459 Date Filed: 08/31/2021 Page: 5 of 7

Because the unexecuted lease agreement is unenforceable against the city, Tropical

Soup had no valid contract upon which it could establish a property interest. 1

Second, Tropical Soup argues that the district court erred in failing to

recognize that its class-of-one equal protection claim did not depend on the existence

of a property interest. Specifically, Tropical Soup argues (1) that it pleaded sufficient

facts to make out an equal protection claim and (2) that if it was required to allege

more facts to state a claim, it should have been given leave to do so. We disagree.

The district court did not separately analyze Tropical Soup’s class-of-one-

equal protection claim. But, because we review a dismissal for failure to state a claim

de novo, the district court’s silence on Tropical Soup’s equal protection claim does

not prevent us from reviewing it. Long v. Commissioner of IRS, 772 F.3d 670, 675

(11th Cir. 2014). To prevail on a class-of-one equal protection claim, a plaintiff must

show (1) that it was treated differently from others who were “similarly situated”

and that (2) there was “no rational basis for the difference in treatment.” Grider v.

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Related

Wagner v. Daewoo Heavy Industries America Corp.
314 F.3d 541 (Eleventh Circuit, 2002)
Griffin Industries, Inc. v. Irvin
496 F.3d 1189 (Eleventh Circuit, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Grider v. City of Auburn, Ala.
618 F.3d 1240 (Eleventh Circuit, 2010)
Pan-Am Tobacco v. Department of Corrections
471 So. 2d 4 (Supreme Court of Florida, 1984)
Village of Willowbrook v. Olech
528 U.S. 562 (Supreme Court, 2000)
Philip Long v. Commissioner of IRS
772 F.3d 670 (Eleventh Circuit, 2014)
Ruben Sebastian v. Javier Ortiz
918 F.3d 1301 (Eleventh Circuit, 2019)
United States v. Stephen Chalker
966 F.3d 1177 (Eleventh Circuit, 2020)
James Henderson v. Mark McMurray
987 F.3d 997 (Eleventh Circuit, 2021)
City of Fort Lauderdale v. Israel
178 So. 3d 444 (District Court of Appeal of Florida, 2016)

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