Florida Dep v. Contractpoint Florida Parks
| Citation | 986 So.2d 1260 |
| Decision Date | 10 July 2008 |
| Docket Number | No. SC07-1131.,SC07-1131. |
| Parties | FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION, Petitioner, v. CONTRACTPOINT FLORIDA PARKS, LLC, et al., Respondents. |
| Court | United States State Supreme Court of Florida |
Bill McCollum, Attorney General, Scott D. Makar, Solicitor General, and Louis F. Hubener, Chief Deputy Solicitor General, Tallahassee, FL, for Petitioner.
Mike Piscitelli, Bradley S. Copenhaver, and Eduardo S. Lombard of Vezina, Lawrence and Piscitelli, P.A., Fort Lauderdale, Florida, and W. Robert Vezina, III of Vezina, Lawrence and Piscitelli, P.A., Tallahassee, FL, for Respondents.
The issue in this case is whether the State is required to pay a lawful judgment arising from a breach of contract action. In order to decide this issue we must interpret section 11.066(3), Florida Statutes (2005), on which the Department of Environmental Protection relied in refusing to pay the judgment against it. In ContractPoint Florida Parks, LLC v. State, 958 So.2d 1035 (Fla. 1st DCA 2007), the First District Court of Appeal held that section 11.066 does not prevent the State or a state agency from paying a judgment in the absence of a specific appropriation but certified the following question to be one of great public importance:
DOES SECTION 11.066, FLORIDA STATUTES, APPLY WHERE JUDGMENTS HAVE BEEN ENTERED AGAINST THE STATE OR ONE OF
Id. at 1038. We have jurisdiction. See art. V, § 3(b)(4), Fla. Const.
For the reasons that follow, we conclude that section 11.066 was not intended to require a specific legislative appropriation before a governmental entity can be required to pay a valid judgment entered into for breach of contract with a private entity. We reach this decision not based on our own view of the "best" policy for the State, but by applying well-established principles of statutory construction. Accordingly, we answer the certified question in the negative and approve the decision of the First District.
This case involves a contract entered into between the State and a private entity at a time when the State sought to "privatize" many of its operations. In April 2001, the Florida Department of Environmental Protection (DEP) entered into a concessions agreement with ContractPoint Florida Parks, LLC (ContractPoint) whereby ContractPoint would finance, construct, and operate 143 vacation cabins and associated concessions in eight state parks. Under the concessions contract, ContractPoint was obligated to pay DEP fifteen percent of its gross sales for thirty years, with two ten-year renewal options based on satisfactory performance.
ContractPoint brought a suit against DEP for wrongful termination of the contract. In August 2005, a jury found that DEP breached the contract and judgment was entered in favor of ContractPoint for $628,543. The basis for the breach of contract action against DEP, the amount of the judgment, and the validity of the judgment are not at issue in this case. The issue here concerns DEP's refusal to pay the judgment based on its assertion that section 11.066 prohibits a state agency from paying any judgment unless there is a specific appropriation by the Legislature for that judgment. In December 2005, ContractPoint filed a Petition for Writ of Mandamus in the trial court seeking to compel DEP and Florida's Chief Financial Officer to pay the judgment. Based on its interpretation of 11.066, the trial court denied ContractPoint's petition, finding no clear duty on the part of DEP to pay the judgment without a specific appropriation for that purpose.
On appeal, the First District reversed, relying on this Court's decision in Pan-Am Tobacco Corp. v. Department of Corrections, 471 So.2d 4 (Fla.1984), which held that when the State enters into a legislatively authorized contract with a private entity, "sovereign immunity will not protect the state from action arising from the state's breach of that contract." Id. at 5. The First District noted in ContractPoint that since Pan-Am, the Legislature has actually promoted public/private contracting projects through several statutes and that the interpretation urged by the State would defeat that very purpose by rendering "all public/private contracts illusory." ContractPoint, 958 So.2d at 1038. Accordingly, the First District concluded that the Legislature did not intend section 11.066 to apply to actions in contract and, therefore, held that the statute did not prohibit payment of the breach of contract judgment by DEP. Id.
The contract between DEP and ContractPoint, entitled "Concession Agreement," is seventeen pages in length and comprises forty-five separate paragraphs. It imposes many obligations on ContractPoint and includes at least two paragraphs (paragraphs 31 and 32) wherein it waives certain types of claims for compensation by ContractPoint. The contract includes the following express remedies to the State for certain breaches by ContractPoint: (1) if ContractPoint does not pay the monthly concession fees on time, liquidated damages will be assessed (paragraph 25); (2) if the payments and damages are not received timely, DEP may take possession and cancel the agreement (paragraph 25); (3) DEP has a continuing lien on all ContractPoint personal property and in the event of default may take possession and sell the personal property (paragraph 28); (4) DEP may terminate the agreement at any time for failure to perform (paragraph 40); and (5) if the agreement is terminated and ContractPoint holds over, such shall constitute trespass for which DEP is entitled to receive liquidated damages of $300 per day (paragraph 40).
Thus, under the contract, not only does DEP have the right to compensation for breach, it also has a right to a lien against ContractPoint's personal property. And, of paramount importance to the issue in this case, there is no limitation contained in either the contract or the statutes on DEP's right to sue the contractor and enforce any judgment it might obtain. It is also noteworthy that the contract could have, but did not, contain provisions for liquidated damages against the agency or mandatory alternative dispute resolution procedures, such as arbitration. The Concession Agreement states that it "shall be interpreted in such manner as to be effective and valid under applicable law" and concludes that it "represents the entire agreement of the parties." (Paragraph 17; emphasis supplied.)
The Legislature expressly granted DEP contracting authority in section 258.007(3), Florida Statutes (2000), which authorizes DEP through its Division of Recreation and Parks to "grant privileges, leases, concessions, and permits for the use of land for the accommodation of visitors in the various parks, monuments, and memorials."1 This statute was in effect before enactment of section 11.066 and has remained in effect ever since. Section 258.007(3) is an explicit authorization by general law for DEP to enter into express, written concessions contracts with private parties and it was under this legislative authority that DEP contracted with ContractPoint in this case.
Moreover, the Legislature expressly encouraged and authorized DEP to contract with private entities for the specific type of project contemplated in the concessions contract between DEP and ContractPoint. Subsection (3)(a) of section 258.015, Florida Statutes (2000), enacted prior to the execution of the contract in this case, provides:
(3) PARTNERSHIPS IN PARKS. —
(a) The Legislature recognizes that many of the parks in the state park system need a variety of facilities to enhance their use and potential. Such facilities include, but are not limited to, improved access, camping areas, picnicking shelters, park management offices and facilities, and environmental education facilities. The need for such facilities has exceeded the ability of the state to provide such facilities in a timely manner with moneys available. The Legislature finds it to be in the public interest to provide incentives for partnerships with private organizations with the intent of producing additional revenue to help enhance the use and potential of the state park system.
The Legislature also appropriated $9.5 million to DEP in fiscal year 2000/2001, which DEP intended to use in its "cabins initiative," although under the Concession Agreement, the burden of financing and construction of cabins in eight state parks was placed on ContractPoint.
DEP's contract with ContractPoint appears to fall squarely within the purview of the Partnerships in Parks program. Under the terms of the contract, DEP would increase the use and potential of the state park system, while receiving fifteen percent of gross sales for the new facilities and without increasing the burden on the State to provide the facilities — a goal specifically encouraged by section 258.015. Under the contract, ContractPoint would receive profit incentives to build and operate the cabins and concessions. In fact, it was primarily ContractPoint's expenditures made toward performing under this contract that formed the basis of the final judgment in this case. We must now answer the question posed by the First District Court of Appeal and decide whether section 11.066 was intended to apply to breach of contract judgments and thus prohibits DEP from paying the judgment obtained by ContractPoint in this case.
The question presented by the First District involves an issue of statutory interpretation, which is subject to de novo review. Heart of Adoptions, Inc. v. J.A., 963 So.2d 189, 194 (Fla.2007). Specifically, the Court must determine whether section 11.066(3), Florida Statutes (2005), applies to contract actions and bars enforcement of judgments entered on breach of contract claims against the State or its agencies if there is no specific legislative appropriation to pay...
To continue reading
Request your trial
-
E.A.R. v. State
...statutory construction. We review questions involving statutory interpretation de novo. See, e.g., Fla. Dep't of Envtl. Prot. v. ContractPoint Fla. Parks, LLC, 986 So.2d 1260, 1264 (Fla.2008). The intent of the Legislature is the polestar of statutory construction. See, e.g., Borden v. East......
-
Connolly v. State
... 172 So.3d 893 John J. CONNOLLY, Jr., Appellant v. The STATE of Florida, Appellee. No. 3D09–280. District Court of Appeal of Florida, Third ... Fla. Dep't of Envtl. Protection v. ContractPoint Fla. Parks, LLC, 986 So.2d 1260, 1265 (Fla.2008). There is nothing in the ......
-
Mountain Cement Co. v. the South of Laramie Water & Sewer Dist.
...... Fla. Dep't of Envtl. Prot. v. ContractPoint Fla. Parks, LLC, 986 So.2d 1260, 1265–66 (Fla.2008) (“If a part of a ......
-
Westphal v. City of St. Petersburg
...meaning of the text. See Holly v. Auld, 450 So.2d 217 (Fla.1984); Fla. Dep't of Envt'l Protection v. ContractPoint Florida Parks, LLC, 986 So.2d 1260 (Fla.2008); Fast Tract Framing, Inc. v. Caraballo, 994 So.2d 355 (Fla. 1st DCA 2008). If the statute conveys a “clear and definite meaning, t......
-
Litigating the ghost of Gideon in Florida: separation of powers as a tool to achieve indigent defense reform.
...at http://www.abanet.org/crimjust/standards/defsvcs_blk.html. (112.) See Fla. Dep't of Envtl. Prot. v. Contractpoint Fla. Parks, LLC, 986 So. 2d 1260, 1265-66 (Fla. (113.) Fla. Stat. [section] 27.5303(1)(a) (2009). (114.) [section] 27.5303(1)(e). (115.) State v. Pub. Defender, Eleventh Judi......
-
The Need for Model Legislation on Private Investment in Public Infrastructure Projects
...21. See Pan Am Tobacco Corp. v. Dep’t of Corr., 461 So. 2d 4 (Fla. 1984); Fla. Dep’t of Env’t Prot. v. Contractpoint Fla. Parks, LLC, 986 So. 2d 1260 (Fla. 2008). 22. Don Toner Jr., Design-Build: The Texas Story (2012 AASHTO Conf., Portland, Or., May 2, 2012), https://bit.ly/3sqeyxF (access......
-
Public private partnerships: the future of public construction in Florida?
...Department of Corrections, 461 So. 2d 4 (Fla. 1984); Florida Department of Environmental Protection v. Contractpoint Florida Parks, LLC, 986 So. 2d 1260 (Fla. (76) Contractpoint, 986 So. 2d at 1272; see also Mike Piscitelli & W. Robert Vezina, Public-Private Contracting in Florida Survi......
-
Public-private contracting in Florida survives.
...& Consumer Servs., 870 So. 2d 774 (Fla. 2004). (18) Id. at 785. (19) Fla. Dep't of Envt'l Prot. v. ContractPoint Fla. Parks, LLC, 986 So. 2d 1260 (Fla. (20) Id. at 1263 (quoting Fla. Stat. [section] 258.007(3) (2000)). (21) Id. at 1264 n.2. This is consistent with the authors' experienc......