108 So. 3d 684
Fla. Dist. Ct. App.2013Background
- Beach Community Bank sues the City of Freeport for negligent enforcement of the Land Development Code related to a Riverwalk Phase I project.
- The LDC allowed the City to require security for completion of infrastructure, including an irrevocable letter of credit (approximately $4.87 million) from DC Capital; City deemed the surety acceptable.
- After development, the Bank loaned $2.4 million secured by a mortgage on Riverwalk lots; infrastructure was not completed and the Letter of Credit was fraudulent/uncollectible.
- Bank alleges City negligently failed to investigate the authenticity of the letter of credit and the financial solvency of DC Capital.
- City moved to dismiss, arguing no duty or that its discretionary, policy-making functions were immune from suit; circuit court denied the motion.
- This was brought on certiorari; the district court granted certiorari, concluding sovereign immunity protected the City and the circuit court had departed from the essential requirements of law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does sovereign immunity bar the Bank's negligence claims? | Beach Community Bank argues City duty breached. | City asserts discretionary planning-level immunity for policy decisions. | Yes, sovereign immunity bars the claims. |
| Is certiorari proper to review the non-final order denying immunity? | Bank contends certiorari is appropriate to address immunity denial. | City contends certiorari review is proper for immunity rulings in this context. | Certiorari proper; order quashed and remedy granted. |
Key Cases Cited
- Wallace v. Dean, 3 So.3d 1035 (Fla.2009) (sovereign immunity for discretionary governmental functions)
- Commercial Carrier Corp. v. Indian River Cnty., 371 So.2d 1010 (Fla.1979) (discretionary vs. operational governmental functions)
- Rodriguez, 67 So.3d 1213 (Fla.3d DCA 2011) (certiorari review of immunity issues consistent with immunity framework)
- Department of Education v. Roe, 679 So.2d 756 (Fla.1996) (interlocutory review limitations regarding immunity discussed)
- Carter v. City of Stuart, 468 So.2d 955 (Fla.1985) (planning-level enforcement decisions are immune from liability)