STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DEPARTMENT OF PROFESSIONAL )

REGULATION, FLORIDA REAL )

ESTATE COMMISSION, )

)

Petitioner, )

)

vs. ) CASE NO. 81-2744

)

JAMES V. HODNETT, JR., ) and SEA PINES REALTY, INC., )

)

Respondents. )

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, K. N. Ayers, held a public hearing in the above- styled case on January 27, 1984, at New Port Richey, Florida.

APPEARANCES

For Petitioner: Fred Langford, Esquire

Department of Professional Regulation Post Office Box 1900

Orlando, Florida 32802

For Respondent: Joseph A. McClain, Esquire

Post Office Box 4

Dade City, Florida 34297

By Administrative Complaint filed October 12, 1981, the Department of Professional Regulation, Petitioner, seeks to revoke, suspend, or otherwise discipline the licenses of James V. Hodnett, Jr., as a real estate broker and Sea Pines Realty, Inc., as a corporate real estate broker. As grounds therefor it is alleged that while James V. Hodnett, Jr., was registered and operating as a real estate broker in the employ of Sea Pines Realty, Inc., property was sold to Mr. and Mrs. A. M. Miller, and others, by Sea Pines Realty, Inc., after known false representations were made to the purchasers about the installation of a golf course in the development, underground utilities, marina and boat dock, recreation hall, parks and lakes, etc.; and that Respondent Hodnett sold property north of Sea Pines Subdivision to Belcher mines, concealed that fact from residents of Sea Pines; and that the mine activity has resulted in daytime blasting which caused irritation and damage to residents of Sea Pines. These activities on the part of Respondent are alleged to constitute fraud, misrepresentation, concealment, false promises, false pretenses, and breach of trust in a business transaction in this state, in violation of Section 475.25(1)(b), Florida Statutes.

At the hearing Petitioner called ten witnesses and seven exhibits were admitted into evidence. At the conclusion of Petitioner's case Respondent moved for dismissal of the charges against both Respondents. Ruling on this motion was reserved. Thereafter, Respondent rested.

Proposed findings submitted by the parties which are included herein are adopted; otherwise, they are rejected as not supported by the evidence, immaterial, or unnecessary to the results reached.

FINDINGS OF FACT

1. James V. Hodnett, Jr., was registered as a real estate broker in 1974 and has been continually so registered since that time (Exhibit 7).

   
   

2. Sea Pines Realty, Inc.'s Articles of Incorporation were filed December 13, 1977, and it was authorized to operate as a Florida corporation on December 15, 1977. Respondent, Sea Pines Realty, Inc., applied for registration as a corporate real estate broker on January 14, 1978, with James V. Hodnett, Jr., as president and active firm member. Request for initial certification for corporation was forwarded to the Florida Real Estate Commission on January 20, 1978, and license was issued to Sea Pines Realty, Inc., as a corporate broker effective February 9, 1978 (Exhibit 6).

   
   

3. Of those nine witnesses who purchased homes or lots in Sea Pines, only one of these witnesses, William Barnes, purchased a lot (or home) in Sea Pines later than 1977. Mr. Barnes purchased his home in 1979 from the previous owner and neither of Respondents was involved in or had any influence on that transaction.

   
   

4. Mr. Miller testified on direct examination that he had searched the public records and learned that Hodnett had owned the land abutting Sea Pines to the north which was sold to Belcher mines, that Belcher mines set off explosives to blast rock in those mines, and that his house was damaged by those explosives. Upon cross-examination, Mr. Miller admitted that he could not say for certain that the property had been sold to Belcher by James Hodnett, Jr., or James Hodnett, Sr., and that it could have been sold by the latter.

   
   

5. In addition to Miller, who purchased his property in 1976; Wurst, who purchased in 1971; Morgal, who purchased in 1977; Farrelly, who purchased in 1971; Leggiere, who purchased in 1976; Senderling, who purchased in 1976; Anderson, who purchased in 1969; and Campbell, who purchased in 1971, all testified that they purchased their properties through, and had contact with, Jean Humphries, who was the salesperson for the developer of this property. Representations regarding the plans to build a golf course, to install underground utility lines, and other representations constituting the gravamen of these charges were all made by Ms. Humphries and none of these representations was made by Hodnett.

   
   

   CONCLUSIONS OF LAW

   
   

6. The Division of Administrative Hearings has jurisdiction over parties to, and the subject matter of, these proceedings.

7. At all times alleged in the Administrative Complaint Respondent, Sea Pines Realty, Inc., was not in being, and Respondent, James V. Hodnett, was not the active broker for that Respondent. No evidence was presented that either Hodnett or an employee of Sea Pines Realty, Inc., made any representation that was false, and all the representations made by Jean Humphries, which are alleged to have been made knowing them to be false, were made before Sea Pines Realty, Inc., reached its corporate birthday.

From the foregoing, it is concluded that no evidence was presented that Respondent, James V. Hodnett, Jr., or Sea Pines Realty, Inc., committed the offenses as alleged. It is therefore

RECOMMENDED that these charges be dismissed and this case closed. ENTERED this 23rd day of February, 1984, at Tallahassee, Florida.

K. N. AYERS, Hearing Officer Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 23rd day of February, 1984.

COPIES FURNISHED:

Harold Huff, Executive Director Florida Real Estate Commission Department of Professional

Regulation

Post Office Box 1900 Orlando, Florida 32802

Fred Langford, Esquire Department of Professional

Regulation - Legal Post Office Box 1900 Orlando, Florida 32802

Fred M. Roche, Secretary Department of Professional

Regulation

130 North Monroe Street Tallahassee, Florida 32301

Joseph A. McClain, Esq. Post Office Box 4

Dade City, Florida 34297

Docket for Case No: 81-002744

Orders for Case No: 81-002744