Palm Beach Florida Hotel v. Nantucket Enterprises, Inc.
211 So. 3d 42 (2016)
Rule of Law:
A landlord may not use self-help to repossess a commercial property, even if the right to do so is reserved in the lease agreement, because Florida's statutory procedures for recovering possession are exclusive and mandatory.
Facts:
- Nantucket Enterprises, Inc. ('Tenant') leased approximately 20,281 square feet of commercial space, including a restaurant, lounge, and ballroom, from the owners of an Embassy Suites Hotel ('Landlord').
- The written lease agreement included a clause permitting the Landlord, upon Tenant's default, to re-enter and take possession of the premises without resorting to legal action.
- Tenant began renovating the restaurant area but failed to acquire the correct building permits, causing the City of Palm Beach Gardens to close the restaurant and deem it unsafe for occupancy.
- On the same day the city closed the restaurant, Landlord placed chains and locks on the doors to the kitchen, restaurant, and Tenant's back offices.
- A few days later, Landlord terminated the lease agreement and used police to escort Tenant’s employees from the restaurant premises.
- As a result of Landlord's actions, Tenant ceased all of its business operations on the leased property.
Procedural Posture:
- The Landlord and Tenant filed multiple claims against each other in the trial court.
- The Landlord's claim for breach of lease and the Tenant’s claims for wrongful eviction and conversion proceeded to a jury trial.
- During the trial, the Tenant moved for a directed verdict on its wrongful eviction claim, which the trial court granted.
- The jury, tasked only with determining damages on the Tenant's claims, awarded Tenant $8.8 million for wrongful eviction and $2 million for conversion.
- The jury also found in favor of the Tenant on the Landlord’s breach of lease claim.
- The trial court denied the Tenant's request for prejudgment interest on the damages award.
- The Landlord, as appellant, appealed the final judgment to the intermediate court of appeal.
- The Tenant, as appellee, cross-appealed the trial court’s denial of prejudgment interest.
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Issue:
Does a provision in a commercial lease agreement authorizing a landlord to use self-help to repossess the premises upon tenant default override a state statute that provides the exclusive legal methods for a landlord to recover possession?
Opinions:
Majority - Perlman, Sandra J., Associate Judge.
No. A commercial lease provision authorizing self-help does not supersede the exclusive statutory methods for recovering possession. Under Florida Statute § 83.06(2), a landlord may recover possession of rented premises 'only' through one of three methods: (1) a court action for possession, (2) the tenant's surrender of the premises, or (3) the tenant's abandonment of the premises. The court reasoned that the statute's use of the word 'only' abrogates any common law right of a landlord to use self-help, rendering the contractual provision allowing it unenforceable. The court found it undisputed that none of the three statutory methods occurred. Furthermore, the court rejected the landlord's argument that terminating the lease ended the tenant's possessory interest, holding that wrongful eviction is a tort not dependent on the existence of a valid lease and that the landlord was still obligated to institute a formal action for possession.
Analysis:
This decision solidifies the legal principle in Florida that statutory eviction procedures are the exclusive remedy for landlords, effectively prohibiting self-help evictions in the commercial context. By invalidating a specific lease provision that authorized self-help, the court affirmed that these statutory protections cannot be contracted away. This precedent provides stability for commercial tenants, ensuring they cannot be forcibly dispossessed without due process, and forces landlords to use the judicial system to resolve possession disputes, thereby preventing potential breaches of the peace.
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