Martha Bright Farms, Inc. v. Broward County Port Authority

• Decision Date: 04 September 1934
• Citation: 158 So. 70,117 Fla. 361
• Parties: MARTHA BRIGHT FARMS, Inc., et al. v. BROWARD COUNTY PORT AUTHORITY et al.
• Court: Florida Supreme Court

158 So. 70

117 Fla. 361

MARTHA BRIGHT FARMS, Inc., et al. v. BROWARD COUNTY PORT AUTHORITY et al.

Florida Supreme Court

September 4, 1934

En Banc.

Suit by Martha Bright Farms, Incorporated, and others, against Broward County Port Authority and others. From a decree dismissing complainants' bill and amended bill of complaint, complainants appeal.

Decree modified. Appeal from Circuit Court, Broward County; H. F. Atkinson, judge.

COUNSEL

McCune Hiaasen & Fleming, of Fort Lauderdale, for appellants.

Shutts & Bowen and Charles A. Carroll, both of Miami, and C. L Chancey, of Fort Lauderdale, for appellees.

OPINION

PER CURIAM.

By chapter 10552, Special Acts of 1925, the then existing municipality of the city of Fort Lauderdale was abolished and a new charter with elaborate administrative and taxing powers was enacted for the city of Fort Lauderdale, in Broward county, Fla. Chapter 11519, Acts of 1925 (Ex. Sess.) established the municipality of city of Hollywood, in Broward county, Fla., with extensive administrative and taxing powers. The validity of this charter was sustained against the attacks made in State ex rel. Attorney-General v Johns, 92 Fla. 187, 109 So. 228.

In 1926 under statutory provisions contained in their respective charters, the city of Hollywood and the city of Fort Lauderdale, two separate municipalities situated on and adjacent to the Atlantic Coast in the state of Florida issued bonds of the cities respectively. Proceeds of the bonds were used for the construction of a public deep-water port and harbor located in part in each city, and each city confined its construction activities to the portion of the port and harbor within its limits. The port or harbor was at first called 'Lake Mabel,' now 'Port Everglades.' City of Fort Lauderdale and city of Hollywood each issued $2,000,000 of bonds for port construction, which bonds were validated by statutory judicial proceedings under section 5106(3296) et seq., C. G. L., before the bonds were sold, and the validating decrees were not appealed from. The bonds issued by city of Fort Lauderdale were validated by chapter 12739, Special Acts of 1927. See, also, chapter 12877, Special Acts of 1927, as to the indebtedness of city of Hollywood.

Chapter 12562, Special Acts of 1927, established the Broward County Port District, a governmental taxing unit covering territory embracing the city of Hollywood, the city of Fort Lauderdale, and other areas including several towns and much unimproved and unoccupied area extending westward towards the Everglades. The governing authority of the district was the 'Broward County Port Authority,' a statutory corporation composed of four freeholder electors of the district. The governmental district was established by statute for the purpose of acquiring, constructing or completing, maintaining, and supervising a deep-water port or harbor with auxiliary powers and privileges within the district. Chapter 12562 was amended by chapter 13940, Special Acts of 1929, enlarging and specifying more definitely the functions of the district. Pursuant to statutory authority the municipal port or harbor was taken over and the bonds assumed by the district. See, also, chapter 13941, Special Acts of 1929. Chapter 15107, Special Acts of 1931, enacted a new charter of powers conferred upon Broward County Port District with broad specific powers and obligations including the following:

'Section 4. That the title, rights, ownership of property, uncollected taxes due, claims, judgments, decrees and choses in action held or owned by the Broward County Port District, or its governing body, the Broward County Port Authority, shall pass to and be vested in the Broward County Port Authority, the governing body of the new Broward County Port District, established and organized under this Act to take the place of and succeed the Broward County Port District hereby abolished.

'Section 5. That no obligations or contracts of the Broward County Port District and/or the Broward County Port Authority, including bonds heretofore issued or authorized or assumed by the Broward County Port District shall be impaired or avoided by this Act, but any such debts and obligations shall pass to and be binding upon the new Broward County Port District and/or Broward County Port Authority, which is hereby organized and created. That the bonded indebtedness of the City of Fort Lauderdale, and of the City of Hollywood, Florida, heretofore assumed by the Broward County Port District under the Port Act herein repealed shall be the valid and binding obligation of the Broward County Port District hereby created and established.'

In 1932 upon petitions filed by holders of harbor bonds issued by the city of Port Lauderdale and the city of Hollywood, respectively, and assumed by the Broward County Port District, under statutory authority, alternative writs of mandamus were issued by this court requiring the obligations of the bonds to be met by ad valorem taxation throughout the district as provided by the statutes controlling the subject. The writs were addressed to the governing authority of the Broward County Port District, to wit, the Broward County Port Authority, a corporation, and the four members composing such corporation under the statute creating the Broward County Port District.

A petition by taxpayers of Broward County Port District for leave to intervene to resist the granting of a peremptory writ of mandamus in one of the cases was denied without prejudice. State ex rel. v. Ryan et al., 103 Fla. 1136, 139 So. 138. The city of Hollywood was made a party respondent. State ex rel. v. Ryan, 106 Fla. 386, 143 So. 297.

The defenses pleaded in the mandamus cases in effect challenged the validity of the harbor bonds as issued by the city of Fort Lauderdale and the city of Hollywood, respectively, and also the validity of the assumption by the district of obligation to pay the bonds. Such defenses were adjudged to be insufficient and overruled, the court holding the bonds were legal obligations of the Broward County Port District. State ex rel. Davis v. Ryan et al. (Fla.) 151 So. 416; State ex rel. Ake v. Broward County Port Authority (Fla.) 151 So. 718.

In the opinion filed December 7, 1933, in Davis-Ryan Case above cited, at page 418 of 151 So., it is said:

'Whether or not individual landowners having properties situate within, and subject to, the tax burdens of the Broward County Port District, have a justiciable cause of complaint against the exercise of the district's taxing power with respect to their individual properties, because of a palpable abuse of the legislative power in the inclusion of their lands within the boundaries of the district, is a question not capable of being tried in a mandamus proceeding of this kind; therefore the special defenses sought to be interposed herein on their behalf by the respondent district officials must be stricken, wihtout prejudice to the individual rights of any of such taxpayers to pursue appropriate proceedings to have any complaint made by them duly adjudicated.'

Rehearings were asked for in the mandamus cases against the officials of the Broward County Port District. There was a full reargument on the entire merits of the cases as presented.

In the opinion denying rehearings, filed May 15, 1934, 158 So. 62, but not yet reported [in State Report], it is stated:

'It is not made to appear as against the statutes, and the court decrees that the municipal bonds were issued to obtain money or credit for private parties. * * * Neither the Constitution nor the statute forbids private parties to contribute to the public improvement, no private rights being acquired in the public project by the contributors.

'There are averments in the answers of respondent to the effect that J. W. Young and his corporations acquired the bed of Lake Mabel and surrounding lands aggregating approximately 12,000 acres, the greater portion of the land being low, swampy marsh land which required drainage and filling in to make it habitable; that under glowing advertisements the land was subdivided, and sales to the public aggregated $75,000,000 that when the city of Hollywood was created in 1925, U. W. Young and his companies owned 80 per cent. of the land in the city and that J. W. Young and his employees were named commissioners of the city for four years; that J. W. Young and his companies undertook to build a deep water harbor at Lake Mabel, now known as 'Port Everglades', at a cost of $15,000,000, and issued and sold to the public $5,000,000 of bonds of the Hollywood Development & Harbor Company; that the project failed; 'that some time prior to the 28th day of June, 1926, the said J. W. Young and his Hollywood Allied Companies for the purpose of relieving himself and his corporations from the burden of defraying the cost of the construction of said deep water harbor at Lake Mabel and for the purpose of fulfilling and carrying out their said scheme and plan so advertised and published as aforesaid for the construction of said deep water harbor at Lake Mabel the purpose of which was by the said J. W. Young and his Hollywood Allied Companies calculated to be of great private gain and financial benefit to the said J. W. Young and his Hollywood Allied Companies, commenced negotiations with the officials of the said Cities of Hollywood and Fort Lauderdale, which last named City is a municipal corporation organized and existing under a special charter in the State of Florida, to-wit, chapter 10552, Special Acts of 1925, with the view of converting the construction of said deep water harbor into a public enterprise, and of inducing the said Cities of Fort Lauderdale and Hollywood of defraying and paying a portion of the...