WSG WEST PALM BEACH DEVELOPMENT, LLC v. Blank

990 So. 2d 708
CourtDistrict Court of Appeal of Florida
DecidedOctober 1, 2008
Docket4D06-4308, 4D07-1620, 4D07-2927
StatusPublished
Cited by12 cases

This text of 990 So. 2d 708 (WSG WEST PALM BEACH DEVELOPMENT, LLC v. Blank) 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
WSG WEST PALM BEACH DEVELOPMENT, LLC v. Blank, 990 So. 2d 708 (Fla. Ct. App. 2008).

Opinion

990 So.2d 708 (2008)

WSG WEST PALM BEACH DEVELOPMENT, LLC, a Florida Limited Liability Company, Appellant,
v.
Perrin L. BLANK, D.D.S., Appellee.

Nos. 4D06-4308, 4D07-1620, 4D07-2927.

District Court of Appeal of Florida, Fourth District.

October 1, 2008.

*710 Jane Kreusler-Walsh of Kreusler-Walsh, Compiani & Vargas, P.A., West Palm Beach, and Neil J. Berman of Berman, Rennert, Vogel & Mandler, P.A., Miami, for appellant.

Gerald F. Richman, Jill G. Weiss and Michael J. Napoleone of Richman Greer, P.A., West Palm Beach, for appellee.

On Motions for Rehearing and Rehearing En Banc

MAY, J.

Both parties have moved for rehearing and rehearing en banc. We deny all motions, but withdraw our original opinion and substitute the following opinion in its place.

Damages and attorney's fees are challenged in this appeal. The landlord appeals an adverse damage judgment and subsequently entered attorney's fees and cost judgments. These appeals were initially consolidated for purposes of the record only; we now sua sponte consolidate them for purposes of this opinion. The landlord argues that the trial court erred in its determination of damages for an admitted breach of a lease agreement and in its award of attorney's fees. We agree that the court erred in the award of attorney's fees, but affirm the damages judgment. We therefore affirm in part and reverse in part.

*711 In 1982 the tenant purchased an existing dentistry practice, acquiring the lease, equipment, and patient records at Northwood Medical Center. In 1989 the tenant entered into a five-year lease, which was renewed three times. The last lease was scheduled to expire in June 2009.

In October and November 2004 the tenant received two estoppel letters from a prospective new landlord that ultimately purchased the property in January 2005. The new landlord received an assignment of the tenant's lease. However, the tenant learned that the new landlord might demolish the building so he began looking for another location.

In February 2005 the tenant located a nearby property and requested that the landlord release him from his current lease with the understanding that the parties would negotiate damages at a later time. The landlord refused. The new property was leased to someone else.

In a June 2005 letter, the landlord advised its tenants they would be evicted because the landlord planned to demolish the building. The letter advised that the utilities would be terminated, and all tenants, employees, and invitees would be barred from the premises. This letter provided the tenant with less than six months to relocate. The tenant found another property and entered into a ten-year lease. The new location was larger, but the base rent was less than the first alternative location the tenant had found.

In August 2005 the tenant filed a breach of contract action against the landlord, seeking temporary injunctive relief, damages, costs and attorney's fees. The complaint requested compensatory, consequential, incidental, and special damages, including "lost profits; injury to business; loss of good will; lost time; lost earnings; lost earning capacity; lost lease value; relocation costs and expenses (including new office plan, design and build out; cost of non-movable equipment and fixtures; moving expenses of movable equipment and computers; new cabinetry; new telephone and speaker systems; new advertising/promotion/signage/stationary; rent differentials); water, electric and other utility expenses; higher premiums for new insurance; borrowing/financing costs and expenses; tax liabilities; consultant and broker fees; and attorneys' fees."

The parties stipulated that the tenant could remain until July 2006, resolving the claim for injunctive relief. That stipulation was extended by court order until October 2006. The landlord admitted liability, thereby limiting the trial to damages.

The Lease between Landlord and Tenant provided the following:

All improvements or alterations made by Lessee ... except specified trade fixtures including all medical equipment of Lessee shall, when made, at once be deemed attached to the freehold and shall become the property of the Lessor and shall at the end or other expiration of the Lease be surrendered to Lessor without compensation to the Lessee. However, Lessor shall have the option, to be exercised on the expiration or sooner termination of this Lease, to require Lessee to remove any and all such improvements or alterations at Lessee's complete cost and expense and at no cost or expense to Lessor.

The tenant testified that he thought the lease allowed him to take the medical equipment, but he didn't know if he was able to take the cabinets. The tenant also provided the testimony of an architect, contractor, and others.

The tenant's architect designed and built out the new space. An interior designer provided new furnishings and decor. And, *712 the contractor testified that he outfitted three operatories—the same number that existed at the old location. However, because the new space had room for six operatories, plumbing was run to the other three rooms.

The tenant provided a dental equipment specialist, who testified that most of the dental equipment from the old location could not be relocated due to its fragility and the difference in spacing. The age and condition of some components, many of which were built into the cabinetry, contributed to the cost. A telephone and computer specialist testified that it was not feasible to relocate the existing telephone and computer system.

In short, the trial court heard extensive testimony concerning the cost of moving the existing equipment and fixtures compared to the cost of purchasing and installing new equipment. Significantly, the landlord provided no rebuttal testimony, instead strategically choosing to object to the tenant's testimony as irrelevant to the issue of legally cognizable damages.

The trial court found the following as reasonable and necessary damages: moving expenses, architecture fees, new furnishings and décor, the cost of the buildout and outfitting of the three operatories, and the installation of specialized cabinetry. The court also found the replacement of the telephone and computer systems and expenses for stationery, business cards, and other marketing materials were reasonable and necessary. The trial court awarded interest on loans the tenant incurred for expenses caused by the premature termination of the lease. In almost every finding, the trial court noted the lack of rebuttal testimony on the part of the landlord.

The trial court denied the tenant's request for reimbursement of the triple rent imposed as a condition of extending the stipulated time period of the original lease and lost revenue for time spent by the tenant in the move and the lawsuit. The trial court also offset the damages awarded by the salvage value of the tenant's old dental equipment. The total damages amounted to $571,652.

Damages Appeal

The landlord correctly argues that the trial court relied on incorrect measures of damages, out-of-pocket expenses in mitigation of damages and the flexibility theory. Nevertheless, we find the trial court ultimately reached a legally sustainable conclusion under the general theory of damages for breach of a contract.

There are two measures of damages for wrongful eviction resulting from the breach of a lease agreement.

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Bluebook (online)
990 So. 2d 708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wsg-west-palm-beach-development-llc-v-blank-fladistctapp-2008.