Filed: Jul. 22, 2015
Latest Update: Mar. 02, 2020
Summary: NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED IN THE DISTRICT COURT OF APPEAL OF FLORIDA SECOND DISTRICT ATRIA GROUP, LLC, ) ) Appellant, ) ) v. ) Case No. 2D14-3916 ) ONE PROGRESS PLAZA, II, LLC, ) ) Appellee. ) ) Opinion filed July 22, 2015. Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for Pinellas County; Pamela A.M. Campbell, Judge. Thomas C. Little of Thomas C. Little, P.A., Clearwater, for Appellant. Marie Tomassi and Adam S. Butkus of T
Summary: NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED IN THE DISTRICT COURT OF APPEAL OF FLORIDA SECOND DISTRICT ATRIA GROUP, LLC, ) ) Appellant, ) ) v. ) Case No. 2D14-3916 ) ONE PROGRESS PLAZA, II, LLC, ) ) Appellee. ) ) Opinion filed July 22, 2015. Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for Pinellas County; Pamela A.M. Campbell, Judge. Thomas C. Little of Thomas C. Little, P.A., Clearwater, for Appellant. Marie Tomassi and Adam S. Butkus of Tr..
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NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING
MOTION AND, IF FILED, DETERMINED
IN THE DISTRICT COURT OF APPEAL
OF FLORIDA
SECOND DISTRICT
ATRIA GROUP, LLC, )
)
Appellant, )
)
v. ) Case No. 2D14-3916
)
ONE PROGRESS PLAZA, II, LLC, )
)
Appellee. )
)
Opinion filed July 22, 2015.
Appeal pursuant to Fla. R. App. P.
9.130 from the Circuit Court for Pinellas
County; Pamela A.M. Campbell, Judge.
Thomas C. Little of Thomas C. Little,
P.A., Clearwater, for Appellant.
Marie Tomassi and Adam S. Butkus of
Trenam, Kemker, Scharf, Barkin, Frye,
O'Neill & Mullis, P.A., St. Petersburg,
for Appellee.
WALLACE, Judge.
Atria Group, LLC, appeals a final summary judgment in favor of One
Progress Plaza II, LLC, on Count I of its complaint for eviction against Atria Group.1
1This court has jurisdiction under Florida Rule of Appellate Procedure
9.130(a)(3)(C)(ii).
One Progress Plaza sought eviction based upon Atria Group's alleged violations of
several nonmonetary conditions of its lease. Because the affidavit and other materials
that One Progress Plaza relied upon in support of its summary judgment motion failed
to meet the demanding standard for summary judgment, we reverse.
I. THE FACTUAL AND PROCEDURAL BACKGROUND
On April 15, 2010, One Progress Plaza and Atria Group entered into a
commercial lease under which Atria Group leased suites 170 and 1900 in One Progress
Plaza's building in St. Petersburg. Atria Group was to use suite 170 as a restaurant and
suite 1900 as a nightclub. In September 2013, One Progress Plaza filed a complaint for
eviction (count I) and for fraud in the inducement (count II) against Atria Group. In count
I, One Progress Plaza alleged that Atria Group had committed numerous nonmonetary
violations of the lease and sought entry of a judgment for possession and to accelerate
the rent in accordance with the provisions of the lease.
In October 2013, Atria Group filed its answer and affirmative defenses, a
request for mediation, and a counterclaim. Atria Group generally denied the majority of
the allegations regarding the claimed breaches. And, pertinent to our review of the
grant of summary judgment, it also alleged the following affirmative defenses: (1) that
One Progress Plaza failed to give the requisite notice of breach and opportunity to cure
under the provisions of the lease; (2) that One Progress Plaza's claims are barred by
laches; (3) that eviction would cause an inequitable forfeiture based on Atria Group's
$2,000,000 investment into the promotion and renovation of the premises and payment
of $25,000 per month rent since 2010; (4) that One Progress Plaza is barred from
terminating the lease under the doctrine of unclean hands; (5) that One Progress Plaza
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is barred from terminating the lease under the doctrine of equitable estoppel; (6) that
One Progress Plaza is barred from terminating the lease under the doctrine of estoppel;
and (7) that One Progress Plaza had failed to state a cause of action.
In February 2014, One Progress Plaza moved for summary judgment on
its claim for eviction. In support of its motion, One Progress Plaza filed the affidavit of
Roger Donaldson, its senior property manager, in which he outlined numerous alleged
violations of the lease committed by Atria Group. These alleged violations can be
grouped in four categories: (1) damage to the property; (2) illegal activity; (3) disregard
of building rules and other lease requirements; and (4) unsanitary conditions and failure
to clean the premises. Atria Group filed a response in opposition to the motion for
summary judgment. In support of its arguments, it filed the affidavit of Marek Pietryniak
and the deposition of Mr. Donaldson. Mr. Pietryniak is the manager of Atria Group.
The circuit court held a hearing on the motion for summary judgment on
July 24, 2014. After hearing the parties' arguments, the circuit court announced that it
had reviewed the affidavits and exhibits filed by the parties and had decided to grant
summary judgment on count I "as to the eviction aspect of it." The circuit court entered
its written Summary Final Judgment in Favor of Plaintiff on Count I of the Complaint on
July 29, 2014, directing Atria Group to vacate the premises by July 31, 2014, and
authorizing One Progress Plaza to reenter and to take possession of the premises on
August 1, 2014. This appeal followed.
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II. THE STANDARD OF REVIEW
Our review of the circuit court's ruling on One Progress Plaza's motion for
summary judgment is de novo. Knowles v. JPMorgan Chase Bank, N.A.,
994 So. 2d
1218, 1219 (Fla. 2d DCA 2008).
Summary judgment is proper only if (1) no genuine issue of
material fact exists, viewing every possible inference in favor
of the party against whom summary judgment has been
entered, Huntington Nat'l Bank v. Merrill Lynch Credit Corp.,
779 So. 2d 396, 398 (Fla. 2d DCA 2000), and (2) the moving
party is entitled to a judgment as a matter of law, [Volusia
Cty. v.] Aberdeen at Ormond Beach[, L.P.], 760 So. 2d [126,
130 (Fla. 2000)]. "If the record reflects the existence of any
genuine issue of material fact or the possibility of any issue,
or if the record raises even the slightest doubt that an issue
might exist, summary judgment is improper." Holland v.
Verheul,
583 So. 2d 788, 789 (Fla. 2d DCA 1991).
Id. Moreover, the movant "must either factually refute the [opposing parties'] affirmative
defenses or establish that they are legally insufficient." Konsulian v. Busey Bank, N.A.,
61 So. 3d 1283, 1285 (Fla. 2d DCA 2011) (citing Moroni v. Household Fin. Corp. III,
903
So. 2d 311, 312 (Fla. 2d DCA 2005)).
III. DISCUSSION
We begin our discussion by noting that
[u]nder a provision of a lease or an agreement, to the effect
that a breach of a covenant to repair or remedy defects in
the premises shall work a forfeiture, it will, in the absence of
special circumstances, permit the lessor to declare a
forfeiture on occurrence of the breach. This is true even
though the condition is a harsh one.
August Corp. v. Strawn,
174 So. 2d 422, 424 (Fla. 3d DCA 1965); see also Smith v.
Winn Dixie Stores,
448 So. 2d 62, 62-63 (Fla. 3d DCA 1984) (acknowledging that "[i]t is
a recognized principle of law that if there is an express provision of the lease providing
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for forfeiture upon a default for failure to comply with any obligation under the lease,
forfeiture of a lease may be permitted" (footnote omitted)). However, it is the policy in
Florida to strictly construe contractual forfeiture provisions against the party seeking to
enforce them. Horatio Enters. v. Rabin,
614 So. 2d 555, 556 (Fla. 3d DCA 1993). "A
court of equity may refuse to declare a forfeiture when the effect of enforcing the
tenant's default would result in an eviction which would be unconscionable, inequitable
or unjust under the circumstances."
Id. (citing Amerifirst Fed. Sav. & Loan Ass'n of
Miami v. Century 21 Commodore Plaza, Inc.,
416 So. 2d 45, 46 (Fla. 3d DCA 1982));
see also
Smith, 448 So. 2d at 63 (noting same).
Article XV of the lease agreement provides, in pertinent part, as follows:
The occurrence of any one or more of the following
events shall constitute a material default and breach of this
Lease by Lessee.
....
(3) The failure by Lessee to observe or perform any of
the covenants, conditions or provisions of this Lease to be
observed or performed by Lessee . . . where such failure
shall continue for a period of ten (10) days after written
notice thereof from Lessor to Lessee; provided, however,
that if the nature of Lessee's default is such that more than
thirty (30) days are reasonably required for its cure, then
Lessee shall not be deemed to be in default if Lessee
commences such cure within said 30-day period and
thereafter diligently prosecutes such cure to completion.
....
In the event of any such material default or breach by
Lessee, Lessor may at any time thereafter, with or without
notice or demand and without limiting Lessor in the exercise
of any right or remedy which Lessor may have by reason of
such default or breach, including, but not limited to, the
following:
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(A) Terminate Lessee's right to possession of the
Premises by any lawful means, in which case this Lease
shall terminate and Lessee shall immediately surrender
possession of the Premises to Lessor. . . .
(B) Reenter and take possession of the Premises and
relet the same for Lessee's account . . . .
After a thorough review of the record, we conclude that the circuit court
erred in granting the summary judgment for eviction for three reasons. First, Mr.
Donaldson acknowledged in his deposition that most of the alleged defaults or violations
of the lease had, in fact, been corrected. Thus, assuming that One Progress Plaza's
allegations were sufficient to establish grounds under the provisions of the lease to
terminate the lease if not corrected, Mr. Pietryniak's affidavit and Mr. Donaldson's
deposition testimony raise issues of material fact about the occurrence of the alleged
defaults and Atria Group's correction of them within the terms of the lease.
Second, One Progress Plaza failed to establish that the alleged violations
of the lease were material. As noted by Atria Group's counsel at the hearing on the
motion for summary judgment, problems are to be expected in a nightclub setting, and
Atria Group could not be expected to prevent all possible occurrences that might violate
the terms of the lease. The critical issue is the nature and result of Atria Group's
responses to any violations. Mr. Donaldson acknowledged in his deposition that in
instances for which he had advised Atria Group about the need for a repair, a problem
with improper conduct by its patrons or employees, or the need to clean up a condition
caused by one of its patrons or employees, Atria Group had taken care of the problem.
Third, One Progress Plaza failed to refute all of Atria Group's affirmative
defenses or to establish that they were legally insufficient. Atria Group alleged that One
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Progress Plaza had failed to give the requisite notice of breach and opportunity to cure
under the lease. Atria Group did acknowledge receipt of a notice dated August 3, 2012,
upon which One Progress Plaza relied. However, Mr. Pietryniak stated in his affidavit
that Atria Group did not receive any other oral or written notices of breach, and One
Progress Plaza has not established beyond dispute the persistence of any default under
the lease after the issuance of notice.
Furthermore, Atria Group also asserted that eviction would cause an
inequitable forfeiture based on its $2,000,000 investment into the promotion and
renovation of the premises and its continuous payment of the rent since 2010. Mr.
Pietryniak stated in his affidavit that Atria Group had paid rent and had invested
approximately $2,000,000 in the property. One Progress Plaza has not refuted these
allegations or shown that Atria Group could not prevail on this affirmative defense.
Notably, Mr. Donaldson acknowledged in his deposition that substantial renovations had
occurred to the nightclub on the nineteenth floor and to the restaurant on the first floor.
These renovations were accepted by One Progress Plaza when they were completed.
Depending upon the resolution of the factual disputes about the occurrence and failure
to remedy the numerous alleged defaults, some of which are more or less significant
than others, Atria Group may be able to prove that it would be inequitable to terminate
the lease in light of its significant investment in the property. See Horatio
Enters., 614
So. 2d at 556;
Smith, 448 So. 2d at 63.
For the foregoing reasons, we reverse the summary judgment for eviction
and remand this case to the circuit court for further proceedings consistent with this
opinion.
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Reversed and remanded.
BLACK and SALARIO, JJ., Concur.
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