Walters v. Blankenship

931 So. 2d 137, 2006 WL 1144385
CourtDistrict Court of Appeal of Florida
DecidedApril 28, 2006
Docket5D05-1541
StatusPublished
Cited by41 cases

This text of 931 So. 2d 137 (Walters v. Blankenship) 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
Walters v. Blankenship, 931 So. 2d 137, 2006 WL 1144385 (Fla. Ct. App. 2006).

Opinion

931 So.2d 137 (2006)

Richard L. WALTERS and Roberta Walters, Appellants,
v.
Kirby BLANKENSHIP, Bonnie Blankenship, et al., Appellees.

No. 5D05-1541.

District Court of Appeal of Florida, Fifth District.

April 28, 2006.
Rehearing Denied June 20, 2006.

*138 Jack W. Shaw, Jr., Orlando, and Douglas M. Bates, Fort Lauderdale, for Appellants.

Jeffrey L. Price and Kristin M. Davis of The Robertson Group, Gainesville, for Appellees McNeely.

Kristen M. Van Der Linde and Blake J. Hood, of Boyd & Jenerette, P.A., Jacksonville, for Appellees Weaver.

No Appearance for Appellees Blankenship.

SHARP, W., J.

Richard and Roberta Walters, the plaintiffs below, appeal an order dismissing with prejudice their complaint against their former neighbors: Kirby and Bonnie Blankenship, Thomas and Lynn Klinehofer, Farrell and Sharon McNeely, and Richard and Demetria Weaver (collectively the defendants) for failure to state a cause of action. We conclude the complaint states a cause of action or, at the very least, can be amended to state a cause of action for tortious interference with a prospective business advantage or civil conspiracy. We reverse and remand for further proceedings.

We begin our analysis by noting we express no opinion as to whether the Walters will ultimately prevail on their claims. At the dismissal stage, our inquiry is solely limited to questions of law. In conducting this review, we must confine ourselves to the four corners of the complaint and accept all allegations in the complaint as true. We are not free to speculate as to what may indeed be true or ultimately proven. Parker v. Parker, 916 So.2d 926 (Fla. 4th DCA 2005); Cintron v. Osmose Wood Preserving, Inc., 681 So.2d 859 (Fla. 5th DCA 1996).

The facts of this case as set forth in the Walters' complaint are as follows: The Walters owned four luxury condominium *139 units and the defendants also each owned one or more units in the same complex. The Walters subsequently listed their four units for sale through a real estate auction company wherein potential bidders were required to deposit a $50,000 cashier's check as a condition precedent to participation as a bidder at the auction. However, there was no reserve for the auction. Twenty-some bidders deposited the required check.

On the day prior to the auction the Walters assert that defendant Thomas Klinehofer confronted another unit owner (not a party to this suit) and stated, "you wait until the day of the sale and see what we are going to do to Dick Walters." On the day of the auction, the defendants placed "for sale by owner" signs in front of their respective units which was prohibited by condominium rules. The auction took place as scheduled.

The Walters' condominium units sold for a total price of $2,066,925. The Walters alleged the combined acts of the defendants placing "for sale by owner" signs in front of their respective units caused catastrophic financial and emotional damage. As a proximate result of these "intentional, spiteful, malicious and non-privileged" acts, each unit offered by the Walters sold at a substantial loss. The defendants allegedly removed all of the "for sale by owner" signs immediately after the last of the Walters' units was sold, which was further evidence that the defendants' acts were "grotesque, macabre, malicious and spiteful."

Based on the above, the Walters filed a complaint against the defendants for tortious interference with a prospective economic advantage, intentional infliction of emotional distress and civil conspiracy to commit the same. The Walters sought compensatory damages in excess of $1.5 million and punitive damages in the amount of at least $4.5 million for the alleged financial losses and emotional distress arising out of the posting of "for sale by owner" signs by the defendants.

The Walters asserted that the presence of "for sale by owner" signs in front of other condominium units lowered the bids and selling prices of their units, causing substantial financial losses. The Walters alleged the defendants knew the Walters were offering all four units for sale at the auction with no price reserve, knew that the auction was non-cancellable and knew that, absent their interference, the four units would sell for substantially higher prices.

The elements of a cause of action based on tortious interference with a business relationship are (1) the existence of a business relationship, (2) the defendant's knowledge of the relationship, (3) the defendant's intentional and unjustified interference with the relationship and (4) damage to the plaintiff as a result of the breach of the relationship. Ethan Allen, Inc. v. Georgetown Manor, Inc., 647 So.2d 812 (Fla.1994); Sobi v. Fairfield Resorts, Inc., 846 So.2d 1204 (Fla. 5th DCA 2003).

Here the Walters alleged the existence of a business relationship with the successful bidders, if not all prospective bidders, their neighbors' knowledge of this relationship, their neighbors' intentional and unjustified interference with this relationship by posting "for sale by owner" signs only during the sale of the Walters' units and with the intention of driving down the Walters' sales price and the resulting damage in the form of a much reduced sales price for the Walters' four units. These allegations appear sufficient to us to state a cause of action for tortious interference.

We view these allegations as involving much more than a "mere offer to sell." Once the Walters agreed to the auction *140 without a reserve, they were obligated to accept the offers on their units irrespective of price. More than 20 bidders, each posting a substantial bond, attended the auction and the units were sold for substantial losses. Thus the parties had progressed beyond the stage of a mere offer to sell— the Walters were now obligated to sell their units albeit at greatly depressed prices, as the result of the interference of the defendants.

Nor do we find the defendants had an absolute First Amendment right to post their "for sale" signs. In Americas Homes, Inc. v. Esler, 668 So.2d 239 (Fla. 5th DCA 1996), we held that homeowners were simply exercising their right to free speech when they placed "for sale" signs on their property even though the signs indicated potential of flooding in the area, and may have decreased home sales.

In that case, however, the homeowners had a legitimate reason for posting their "for sale" signs and were doing so on the advice of their broker. The homeowners had listed their property for sale and shortly thereafter, a flood occurred nearby. Their broker advised the homeowners they would not be able to sell their property unless they fully disclosed the flooding. The homeowners complied with their broker's request by posting a sign which read: "Due to local flooding this property is for sale."

In contrast, here the defendants had no legitimate reason for posting their "for sale" signs. Their units were not for sale and their signs were removed as soon as the last of the Walters' units was sold. According to the Walters' complaint, the defendants posted their for sale signs simply out of malice and spite. See Londono v. Turkey Creek, Inc., 609 So.2d 14 (Fla.

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Bluebook (online)
931 So. 2d 137, 2006 WL 1144385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walters-v-blankenship-fladistctapp-2006.