USA INDEPENDENCE MOBILEHOME v. LAKE CITY

• Decision Date: 19 August 2005
• Docket Number: No. 1D04-471.,1D04-471.
• Parties: USA INDEPENDENCE MOBILEHOME SALES, INC., Appellant, v. CITY OF LAKE CITY, an incorporated municipality in the State of Florida; and Columbia County, Florida, a political subdivision of the State of Florida, Appellees.
• Court: Florida District Court of Appeals

908 So.2d 1151

USA INDEPENDENCE MOBILEHOME SALES, INC., Appellant, v. CITY OF LAKE CITY, an incorporated municipality in the State of Florida; and Columbia County, Florida, a political subdivision of the State of Florida, Appellees.

No. 1D04-471.

District Court of Appeal of Florida, First District.

August 19, 2005.

Craig B. Willis of Fixel, Maguire & Willis, Tallahassee, for Appellant.

Marlin M. Feagle of Feagle & Feagle Attorneys, P.A., Lake City, for Appellees.

KAHN, C.J.

Appellant, USA Independence Mobile Home Sales, Inc., appeals from the trial court's Order Denying Plaintiff's Motion for Determination of Taking. We affirm the trial court's determination that no taking occurred on the basis of lost access, as well as its determination that no basis existed to impose liability upon Columbia County under a joint venture theory. We must, however, reverse the trial court's finding that appellant renounced its leasehold interest in the subject property and, therefore, forfeited its right to compensation altogether.

BACKGROUND

Appellant is a closely held corporation controlled by its two principals, Timothy and Angela Graham. In 1997, the Grahams purchased a mobile home sales center in Lake City, Florida, located on the south side of U.S. Highway 90 and across from the intersection of Highway 90 and Douglas Road. Upon purchasing the business, the Grahams entered into a sublease with the previous owner and incorporated the business. When the sublease terminated in 1998, appellant entered into a three-year lease with the owner of the property, Jack Rountree. That lease included an addendum which provided the legal description of the property and further provided:

Lessee to have access to an additional amount of land which is 215' × 366' at the rear of the above described location. Anticipated, but not guaranteed, construction of Douglas Road South of U.S. 90 and along the Western side of the property will reduce the U.S. 90 frontage of 215 feet by an amount required to meet Florida Department of Transportation standards for this type of intersection with traffic signals.

Further it is anticipated that there will be no U.S. 90 access to the property, rather multiple driveways will allow access from Douglas Road along the Western side of the property.

In 1999, the City of Lake City (City) purchased, from Mr. Rountree, a strip of land running along the western side of the property leased to the appellant for the purpose of extending Douglas Road to the south. Appellant did not learn of the transaction until after the sale had occurred.

In April 1999, crews contracted by Columbia County (County) began construction on the Douglas Road extension. As a result of the construction, appellant was required, at its own expense, to move several of its mobile homes to other portions of its lot and to an adjacent lot owned by Mr. Rountree. Once construction began, customers could no longer access appellant's property directly from Highway 90. Customers wishing to visit the sales facility were required to drive through the construction site and access the property through one of three access points created on the Douglas Road extension. Allegedly, access to the site was completely blocked on seven intermittent days between April 1999 and August 1999. During this time, appellant's sales declined from twelve to fifteen homes per month to one to three homes per month.

On October 13, 2000, appellant filed a complaint against the City and County alleging a cause of action for inverse condemnation. Among other things, appellant alleged:

7. Defendants City and County entered into an agreement for the construction of a joint road construction project in Columbia County.

8. Under the agreement, the City acquired the real property necessary for the project and the County was responsible for the actual construction of the project, which was let pursuant to contract.

Appellant sought damages for the value of the property taken, lost business, and special damages pertaining to personal property and trade fixtures rendered useless by the taking.

Upon appellant's Motion for Determination of Taking, the trial court conducted a bench trial on the issue of whether a taking by the City or County occurred. Denying the motion, the court concluded "that all of the relevant evidence in this case demonstrates that no compensable taking of property from the Plaintiff has occurred as a matter of law." The trial court found persuasive the language in the lease addendum which disclosed the possibility of the Douglas Road construction project. Based on this language, the court concluded that appellant was aware that a portion of the property could be taken and that access from Highway 90 could be eliminated. According to the trial court, this lease language, combined with appellant's actions after the onset of construction, amounted to a renouncement of appellant's leasehold interest in the portion of the property purchased by the City. Moreover, the trial court found that appellant failed to prove that the project impaired access to such an extent as to deny "all economic and beneficial use of the property." Finally, the trial court concluded that the County could not be liable for any taking because it never acquired an interest in the property and appellant failed to prove the existence of a joint venture between the County and the City.

ANALYSIS

Appellant's argument on appeal raises three issues requiring the application of three different standards of review. The issue of whether the trial court erred in finding that appellant renounced its leasehold interest in the property purchased by the City primarily requires a determination of whether the lease language was sufficient to create such a renunciation in the event the construction project came to fruition. A trial court's interpretation of a written agreement is subject to de novo review by this court. See, e.g., 14TH & Heinberg, L.L.C. v. Henricksen & Co., 877 So.2d 34, 37 (Fla. 1st DCA 2004)

. The trial court's determination that access to the property had not been substantially impaired presents a mixed question wherein the trial court reconciles conflicting evidence and "then decides has a matter of law whether the landowner has incurred a substantial loss of access by reason of the governmental activity." Palm Beach County v. Tessler, 538 So.2d 846, 850 (Fla.1989). Thus, the trial court's factual findings are afforded deference, but its application of the facts to the law is subject to de novo review. See Gainesville Health Care Ctr., Inc. v. Weston, 857 So.2d 278, 283 (Fla. 1st DCA 2003). Finally, the trial court's determination that no basis existed for liability on the part of Columbia County presents a question of fact, which must be upheld if supported by competent, substantial evidence. See generally Knepper v. Genstar Corp., 537 So.2d 619, 622 (Fla. 3d DCA 1988) ("The existence of a joint venture is commonly a fact question to be determined by the trier of fact.").

As to the first issue on appeal, we find that the trial court erred in concluding that appellant renounced its interest in the property purchased by the City. The trial court relied exclusively on this court's opinion in Orange State Oil Co. v. Jacksonville Expressway Auth., 143 So.2d 892 (Fla. 1st DCA 1962). The primary distinction between this case and Orange State is that the lessee in Orange State abandoned its interest in the leased property before the property had been conveyed by the lessor to the governmental entity. Id. at 893. In affirming the lower court's conclusion that the lessee had committed an anticipatory breach, this court observed:

The general rule appears to be that a partial taking of a leasehold estate under the power of eminent domain does not constitute an eviction of the lessee and he remains bound to perform the obligations assumed by him under the terms and provisions of the lease. Nothing short of a surrender, a release or an eviction will discharge him from his covenants in this behalf. Even though a lessee may be entitled to a reduction in the reserve rental to the extent that a partial taking has diminished the value of his leasehold estate, he is not privileged to unilaterally declare the lease contract terminated, abandon the leasehold estate and refuse to meet the obligations assumed by him in the lease contract.

* * * * * *

It has also been held upon the weight of authority that the breach, abandonment or renunciation of a lease by the lessee before the expiration of the term gives the lessor the right to treat the lease as terminated and resume possession, thereafter using the same exclusively for his own purpose.

Id. at 894 (footnotes omitted). In the present case, appellant did not abandon the property before Mr. Rountree conveyed the property to the City. Instead, appellant continued to occupy the property until construction crews arrived on the site to begin surveying and clearing operations. Moreover, appellant, unlike Orange State, did not provide written notice to Rountree or the City that it intended to vacate the property and terminate its obligations under the lease. See id. at 893. Appellant in this case continued to pay the full amount of its lease payments to Rountree throughout the construction.

The trial court placed undue emphasis on lease language disclosing the possibility that a portion of the property would be lost to the Douglas Road construction project. This disclosure achieved nothing more than placing appellant on notice that construction could occur during the term of the lease. It specifies neither the exact amount of property that would be lost nor the timing of the anticipated construction.

Appellees imply that the lease payments took into account the possibility of construction because appellant did not seek a reduction in rent and Rountree did not offer such a reduction. This argument relies upon an unreasonable interpretation of the...