Filed: Jul. 27, 2005
Latest Update: Feb. 21, 2020
Summary: [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT FILED _ U.S. COURT OF APPEALS ELEVENTH CIRCUIT No. 05-11292 JULY 27, 2005 Non-Argument Calendar THOMAS K. KAHN _ CLERK D.C. Docket No. 03-01189-CV-T-26-TGW MOHAMMED HUSEIN BHADELIA, an individual and citizen of Karachi Pakistan, MOHAMMED FAROOQ BHADELIA, an individual and citizen of the U.S.A, Plaintiffs-Counter- Defendants-Appellants, versus MARINA CLUB OF TAMPA, HOMEOWNERS ASSOCIATION, INC., A Florida (F.S. Chapter
Summary: [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT FILED _ U.S. COURT OF APPEALS ELEVENTH CIRCUIT No. 05-11292 JULY 27, 2005 Non-Argument Calendar THOMAS K. KAHN _ CLERK D.C. Docket No. 03-01189-CV-T-26-TGW MOHAMMED HUSEIN BHADELIA, an individual and citizen of Karachi Pakistan, MOHAMMED FAROOQ BHADELIA, an individual and citizen of the U.S.A, Plaintiffs-Counter- Defendants-Appellants, versus MARINA CLUB OF TAMPA, HOMEOWNERS ASSOCIATION, INC., A Florida (F.S. Chapter ..
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[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT FILED
________________________ U.S. COURT OF APPEALS
ELEVENTH CIRCUIT
No. 05-11292 JULY 27, 2005
Non-Argument Calendar THOMAS K. KAHN
________________________ CLERK
D.C. Docket No. 03-01189-CV-T-26-TGW
MOHAMMED HUSEIN BHADELIA,
an individual and citizen of Karachi Pakistan,
MOHAMMED FAROOQ BHADELIA,
an individual and citizen of the U.S.A,
Plaintiffs-Counter-
Defendants-Appellants,
versus
MARINA CLUB OF TAMPA,
HOMEOWNERS ASSOCIATION, INC.,
A Florida (F.S. Chapter 720) corporation,
Defendant-Counter-
Claimant-Appellee.
__________________________
Appeal from the United States District Court
for the Middle District of Florida
_________________________
(July 27, 2005)
Before TJOFLAT, DUBINA and HULL, Circuit Judges.
PER CURIAM:
Plaintiffs Mohammed Husein Bhadelia and Mohammed Farooq Bhadelia,
who are brothers, appeal the district court’s enforcement of a settlement agreement
between them and defendant Marina Club of Tampa, Homeowners Association,
Inc. (“Marina Club”). After review, we affirm.
I. BACKGROUND
A. The Dispute
Husein Bhadelia is a citizen and resident of Pakistan. His brother, Farooq
Bhadelia is a citizen of the United States of America.
In 1993, Husein Bhadelia purchased three condominium buildings in
Tampa, Florida. Two of the condominium buildings were complete, but the third
was merely an open shell and construction site. After Husein Bhadelia purchased
the buildings, his brother, Farooq Bhadelia, acted as Husein Bhadelia’s agent and
sold most of the remaining units in the two completed buildings. However, the
Bhadelias allowed the third building to remain an open shell and construction site.
The condominium unit owners in the two other buildings were upset with
the appearance of the unfinished building and the effect it was having on property
values. For the next ten years, the Bhadelias and the Marina Club, which served
2
as the homeowners association for the condominium unit owners, periodically
engaged in disputes over the unfinished building.
On August 1, 2003, the Bhadelias filed an amended complaint against
Marina Club alleging that the Marina Club: (1) retaliated against them in violation
of the Americans with Disabilities Act and the Federal Fair Housing Act; (2)
discriminated against them after the September 11, 2001 attacks; (3) improperly
placed liens on the Bhadelias’ property; and (4) fraudulently represented that it
had authority to manage the common areas of the condominium complex.1
The Marina Club filed a counterclaim seeking: (1) title to all common areas
and amenities; (2) title to the unfinished building and all other non-developed
land; and (3) an injunction preventing the Bhadelias from maintaining a nuisance.
B. The Settlement
On July 7, 2004, the district court referred the parties to court-ordered
mediation. Husein Bhadelia did not attend the settlement conference, but his
brother, Farooq Bhadelia, and the Bhadelias’ attorney did. The Bhadelias’
attorney at the mediation was the same attorney who filed the amended complaint.
1
The Bhadelias filed an initial two-count complaint on June 6, 2003. We address the
amended complaint because it contains the claims that went to mediation.
3
After more than eleven hours of mediation, Farooq Bhadelia and Marina
Club reached a settlement. The settlement agreement is signed by Farooq
Bhadelia on behalf of Husein Bhadelia. According to the terms of the settlement,
Husein Bhadelia would retain title to the unfinished building, but was subject to
certain deadlines for the completion of the unfinished building, and Marina Club
would pay $675,000 for title to the amenities, common areas, and two additional
parcels of land.
After the parties reached the above settlement, Husein Bhadelia rejected the
settlement and claimed that his brother, Farooq Bhadelia, acted outside the scope
of his authority in entering into the settlement. Unable to get the Bhadelias to
comply with the terms of the settlement, the Marina Club filed a motion to enforce
the settlement agreement in federal district court.
C. Hearing Before the District Court
The district court conducted an evidentiary hearing into whether Farooq
Bhadelia had the authority to enter into the settlement agreement on behalf of
Husein Bhadelia. As with the settlement conference, Husein Bhadelia did not
attend the evidentiary hearing.
At the evidentiary hearing, the mediator testified that he “was told that
everybody was represented [at the settlement conference] that could bind the
4
parties to an agreement.” Furthermore, Farooq Bhadelia testified that he acted as
his brother’s agent in selling units in the two completed condominium buildings.
Farooq Bhadelia also stated that he acted with his brother’s authority when filing
the lawsuit against the Marina Club and when beginning the settlement
negotiations. Finally, the Bhadelias’ attorney testified that “in the past 15 years of
representing Mr. [Farooq] Bhadelia, I had never known him to need specific
authority from his brother [Husein Bhadelia] to do anything he was doing on
behalf of his brother.”
At the conclusion of the evidentiary hearing, the district court determined
that Farooq Bhadelia acted within the scope of his authority as Husein Bhadelia’s
agent. Consequently, the district court granted the Marina Club’s motion to
enforce the settlement agreement.
The Bhadelias appeal.
II. DISCUSSION
We review a district court’s decision to enforce a settlement agreement for
an abuse of discretion. Hayes v. Nat’l Serv. Indus.,
196 F.3d 1252, 1254 (11th Cir.
1999). Furthermore, we look to state law when determining whether an agent had
authority to enter into a settlement agreement.
Id.
5
In Florida, a principal is liable for the acts of its agent under both express
and apparent authority. Stiles v. Gordon Land Co.,
44 So. 2d 417, 421 (Fla. 1950).
“By apparent authority is meant, such authority as the principal wrongfully permits
the agent to assume or which the principal by his actions or words holds the agent
out as possessing.”
Id.
In this case, there is no dispute that Husein Bhadelia authorized Farooq
Bhadelia to bring the initial suit against the Marina Club. Furthermore, Farooq
Bhadelia acted as Husein Bhadelia’s agent in selling condominium units from the
finished buildings. Finally, both Farooq Bhadelia and the Bhadelias’ attorney
testified that Farooq Bhadelia had the authority to enter into settlement
negotiations. Given these circumstances, the district court did not err in
concluding that Farooq Bhadelia had the authority to settle the lawsuit on Husein
Bhadelia’s behalf, and, thus, the district court did not abuse its discretion when
enforcing the settlement.2
AFFIRMED.
2
The Bhadelias’ remaining issues on appeal, such as the district court’s initial denial of their
motion to dismiss the Marina Club’s counterclaim before sending the case to settlement, are without
merit and not discussed further. The settlement agreement resolved the entire case.
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