Gulf Coast Transp. v. Hillsborough Cnty.

• Decision Date: 07 October 2022
• Docket Number: 2D20-3326,2D20-3432
• Parties: GULF COAST TRANSPORTATION, INC., d/b/a UNITED CAB, UNITED TAXI AND TAMPA BAY CAB, SOUTH TAMPA CAR SERVICE, LLC, BLACK DIAMOND CAB SERVICE, LLC, A+ CAB TAMPA, INC., AFTAH ABDERRAHMANE d/b/a MOE TAXI, GUSTAVO BOJORQUEZ d/b/a G & Y TRANSPORTATION, GOLDEN BAY CAR SERVICE, INC., d/b/a AMERICAN TAXI OF TAMPA BAY, PALM TAXI SERVICE, LLC, ABBAY TAXI, LLC, AWASH TAXI, LLC, ABC TAXI, LLC, BAY & BEACH CAB, LLC, d/b/a EXECUTIVE CAB, BAY & BEACH TRANSPORTATION, LLC, CALL-B-4-DUI TRANSPORTATION, INC., ADDIS CAR SERVICE, INC., BLUE TAXI SERVICES, LLC, AAA CAB OF TAMPA, LLC, SHAH'S TAXI SERVICE, LLC, ACCESSIBLE TAXI, LLC, NEW TAMPA TAXI CAB, LLC, MIRETU MENGESHA d/b/a SUNSHINE TAXI, CHECKER CAB TRANSPORTATION, INC., RED TOP CAB COMPANY, YELLOW CAB COMPANY OF TAMPA, INC., TRANSAFE, INC., CONDOR GROUP, INC. d/b/a BLACK CAR, TRANSAFE TRANSPORTATION, INC. d/b/a LIMOX, HYDE PARK TAXI SERVICE, INC., GREEN TAXI CAB, INC., YBOR TAXI, LLC, DAVID'S AUTO SUPPLY, INC., VIP TAXI, INC. d/b/a A-1 TAXI COMPANY, MULUGETA WORKU d/b/a WHITE BLUE TAXICAB, ERMIYAS T. DESTA d/b/a WESTCHASE CAR SERVICES, WESTCHASE TAXI, LLC, and SAMUEL G. TESFAGIORGIS d/b/a UNITED CAB, individually and on behalf of all those similarly situated, Appellants, v. HILLSBOROUGH COUNTY and STATE OF FLORIDA, Appellees. STATE OF FLORIDA, Appellant, v. GULF COAST TRANSPORTATION, INC., d/b/a, UNITED CAB, UNITED TAXI and TAMPA BAY CAB, SOUTH TAMPA CAR SERVICE, LLC, BLACK DIAMOND CAB SERVICE, LLC, A+ CAB TAMPA, INC., AFTAH ABDERRAHMANE d/b/a MOE TAXI, and GUSTAVO BOJORQUEZ, d/b/a G & Y TRANSPORTATION, individually and on behalf of all those similarly situated; and HILLSBOROUGH COUNTY, Appellees.
• Court: Florida District Court of Appeals

GULF COAST TRANSPORTATION, INC., d/b/a UNITED CAB, UNITED TAXI AND TAMPA BAY CAB, SOUTH TAMPA CAR SERVICE, LLC, BLACK DIAMOND CAB SERVICE, LLC, A+ CAB TAMPA, INC., AFTAH ABDERRAHMANE d/b/a MOE TAXI, GUSTAVO BOJORQUEZ d/b/a G & Y TRANSPORTATION, GOLDEN BAY CAR SERVICE, INC., d/b/a AMERICAN TAXI OF TAMPA BAY, PALM TAXI SERVICE, LLC, ABBAY TAXI, LLC, AWASH TAXI, LLC, ABC TAXI, LLC, BAY & BEACH CAB, LLC, d/b/a EXECUTIVE CAB, BAY & BEACH TRANSPORTATION, LLC, CALL-B-4-DUI TRANSPORTATION, INC., ADDIS CAR SERVICE, INC., BLUE TAXI SERVICES, LLC, AAA CAB OF TAMPA, LLC, SHAH'S TAXI SERVICE, LLC, ACCESSIBLE TAXI, LLC, NEW TAMPA TAXI CAB, LLC, MIRETU MENGESHA d/b/a SUNSHINE TAXI, CHECKER CAB TRANSPORTATION, INC., RED TOP CAB COMPANY, YELLOW CAB COMPANY OF TAMPA, INC., TRANSAFE, INC., CONDOR GROUP, INC. d/b/a BLACK CAR, TRANSAFE TRANSPORTATION, INC. d/b/a LIMOX, HYDE PARK TAXI SERVICE, INC., GREEN TAXI CAB, INC., YBOR TAXI, LLC, DAVID'S AUTO SUPPLY, INC., VIP TAXI, INC. d/b/a A-1 TAXI COMPANY, MULUGETA WORKU d/b/a WHITE BLUE TAXICAB, ERMIYAS T. DESTA d/b/a WESTCHASE CAR SERVICES, WESTCHASE TAXI, LLC, and SAMUEL G. TESFAGIORGIS d/b/a UNITED CAB, individually and on behalf of all those similarly situated, Appellants, v. HILLSBOROUGH COUNTY and STATE OF FLORIDA, Appellees.

STATE OF FLORIDA, Appellant, v. GULF COAST TRANSPORTATION, INC., d/b/a, UNITED CAB, UNITED TAXI and TAMPA BAY CAB, SOUTH TAMPA CAR SERVICE, LLC, BLACK DIAMOND CAB SERVICE, LLC, A+ CAB TAMPA, INC., AFTAH ABDERRAHMANE d/b/a MOE TAXI, and GUSTAVO BOJORQUEZ, d/b/a G & Y TRANSPORTATION, individually and on behalf of all those similarly situated; and HILLSBOROUGH COUNTY, Appellees.

Nos. 2D20-3326, 2D20-3432

Florida Court of Appeals, Second District

October 7, 2022

Appeals from the Circuit Court for Hillsborough County; Paul L. Huey, Judge.

Bryan S. Gowdy and Dimitrios A. Peteves of Creed & Gowdy, P.A. Jacksonville; Jason K. Whittemore of Wagner McLaughlin, P.A. Tampa; and Anthony D. Martino of Clark & Martino, P.A. Tampa, for Gulf Coast Transportation, Inc., et al.

Robert E. Brazel, Chief Assistant County Attorney, Office of the County Attorney, Tampa, for Hillsborough County.

Ashley Moody, Attorney General, Amit Agarwal, Solicitor General, James H. Percival, Chief Deputy Solicitor General, Kevin A. Golembiewski, Deputy Solicitor General, David M. Costello, Assistant Solicitor General, Henry C. Whitaker, Solicitor General, and Daniel W. Bell, Chief Deputy Solicitor General, Tallahassee, for the State of Florida.

ATKINSON, JUDGE.

These consolidated appeals^[1] arise from an inverse condemnation proceeding brought by Gulf Coast Transportation, Inc., doing business as United Cab, and several other taxicab companies operating in Hillsborough County (collectively, Taxicab Companies) against the State of Florida (the State) and Hillsborough County (the County).^[2] In Case 2D20-3326, the Taxicab Companies appeal the trial court's final judgment in favor of the County.

In Case 2D20-3432, the State appeals the trial court's order denying its motion to dismiss the Taxicab Companies' complaint for failure to state a claim. We hold that the Taxicab Companies did not have a property interest for purposes of the Takings Clause. Accordingly, we affirm the judgment in favor of the County in Case 2D20-3326; we reverse the portion of the order denying the State's motion to dismiss and remand Case 2D20-3432 for further proceedings consistent with this opinion.

In 1976, the State enacted special legislation which created the Hillsborough County Consolidated Taxicab Commission and governed the makeup of its board of commissioners, its authority, and its operations. Ch. 76-383, Laws of Fla. The special act gave the Hillsborough County Consolidated Taxicab Commission broad powers, including the powers to issue and revoke public vehicle driver licenses and to require inspections, insurance, installation of two-way radios, background checks for public vehicle driver applications, and payment of public vehicle licensing and annual fees. Id.

In 1983, the legislature changed the commission's name to the Hillsborough County Public Transportation Commission (PTC). Ch. 83-423, Laws of Fla. The legislature again passed a special act concerning the PTC in 2001, but the PTC's powers and responsibilities remained largely unchanged after the 1983 and 2001 special acts.^[3] See ch. 2001-299, § 5, Laws of Fla.; cf. ch. 76-383, Laws of Fla.; ch. 83-423, Laws of Fla.

In 2012, the legislature again passed a special act concerning the PTC. Ch. 2012-247, Laws of Fla. In relevant part, the 2012 special act provided

(2) Any certificate of public convenience and necessity for taxicabs or any taxicab permit previously or hereafter issued by the [PTC], created by chapter 83-423, Laws of Florida, is the private property of the holder of such certificate or permit.

(3) The holder of a certificate of public convenience and necessity for taxicabs or a taxicab permit issued by the [PTC] may transfer the certificate or permit by pledge, sale, assignment, sublease, devise, or other means of transfer to another person. . . . Except for a transfer by devise or intestate succession, the transfer must be approved, in advance, by the [PTC], and the proposed transferee must first qualify to be a taxicab certificateholder or permitholder under commission rules. The proposed transferee of a transfer by devise or intestate succession must conditionally qualify as a taxicab certificateholder or permitholder under [PTC] rules within 120 days after the transfer, unless otherwise extended by the commission. The conditional nature of the qualification shall be removed upon the probate court's final adjudication that the proposed transferee is actually entitled to the ownership of the transferred certificate or permit.

Ch. 2012-247. The 2012 amendment also specifically recognized the "existing and authorized population cap and limits for taxicab permits" promulgated by the PTC in its rules and incorporated the "existing population cap and limits" into the amendment. See ch. 2012-247(4); see also Hillsborough County Public Transportation Commission, Rule 1-2.001(7) (Mar. 19, 2013) ("The [PTC] may at no time authorize more than one (1) Taxicab Type of service Permit per one thousand-nine hundred (1,900) inhabitants of Hillsborough County . . . .").

Through chapters 76-383, 83-423, 2001-299, and 2012-247, the legislature created an administrative body-the PTC- empowered to create and maintain a capped taxicab market in Hillsborough County. The PTC governed and regulated participation in this limited market by promulgating rules according to the special legislation and issuing certificates of public convenience and taxicab permits (collectively, medallions) to limit the individuals or entities that could participate in what was effectively a closed market. A person could only participate in this closed market scheme while in possession of a valid medallion issued by the PTC according to its rules and the special legislation. The 2012 special legislation granted medallion holders property rights in their medallions so that they could transfer their medallions to otherwise qualifying individuals who wanted to compete in the closed market. The grant of property rights resulted in a secondary market in which medallion holders could transfer their medallions for value to other persons approved by the PTC or devise their medallions to persons who were required to become conditionally qualified to hold the medallions pursuant to PTC rules within 120 days.

The PTC, as created and modified by the special acts passed in 1976, 1983, 2001, and 2012, governed the taxicab industry in Hillsborough County until 2017 when the legislature dissolved the PTC and repealed the 2012 special act. Ch. 2017-198, Laws of Fla. Chapter 2017-198 did not transfer any of the PTC's assets or liabilities to the County or direct the County to adopt any specific regulatory scheme. The 2017 legislation repealing chapter 2012-247 did not address whether the County must compensate medallion holders for any loss of property rights in their medallions that had been conferred by chapter 2012-247 or otherwise recognize those property rights.

The PTC having been dissolved and the special legislation governing it having been repealed, the County was authorized to regulate vehicles for hire pursuant to section 125.01(1)(n), Florida Statutes (2017) (providing that the governing bodies of counties have the power to license and regulate passenger vehicles for hire in unincorporated areas and that the governing bodies of charter counties may issue a limited number of permits to operate taxis). The County passed a vehicle for hire ordinance which required persons desiring to engage in taxicab business in Hillsborough County to obtain certificates from the Tax Collector and permits for each vehicle for hire. Hillsborough County, Fla., Ordinance 17-22, (Sept. 7, 2017). The County's new ordinance did not recognize or grandfather in medallions issued by the PTC. See id.

The Taxicab Companies operated taxicabs in Hillsborough County while the special acts were in effect and had been issued medallions by the PTC. According to the 2012 special legislation the Taxicab Companies were given transferable "property" rights in their medallions. After the State enacted chapter 2017-198 and the County promulgated Ordinance 17-22, the Taxicab Companies could not use their PTC medallions to continue their business in Hillsborough County. Since medallions issued by the PTC no longer served to permit a person to operate a taxicab in Hillsborough County, the Taxicab Companies concluded that their medallions had been rendered worthless. The Taxicab Companies brought the underlying inverse condemnation action,...