PBT Real Estate, LLC v. Town of Palm Beach
19-11264
| 11th Cir. | Nov 5, 2021Background
- The Town of Palm Beach undertook a utility-undergrounding project funded by special assessments allocated based on expected benefits (reliability, safety, aesthetics).
- The Town exempted properties that it had previously assessed when it completed neighborhood-specific undergrounding, but did not exempt properties that had privately undergrounded their utilities (including PBT’s property at Palm Beach Towers).
- PBT Real Estate sued under 42 U.S.C. § 1983 (class-of-one equal protection and substantive due process) and raised related Florida-law claims; PBT filed three amended complaints.
- The district court dismissed PBT’s complaints (first two by dismissal; third by summary judgment) for failing to show similarly situated comparators and for not challenging the assessment as a whole; the Eleventh Circuit affirmed on the merits on prior appeal.
- The Town moved for attorney’s fees under 42 U.S.C. § 1988; the district court awarded fees as PBT’s § 1983 claims were deemed frivolous, and the Eleventh Circuit affirmed the fee award, holding no abuse of discretion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PBT’s § 1983 claims were frivolous such that the Town is entitled to attorney’s fees under § 1988 | PBT argued its claims were colorable and not frivolous; court should not sanction repeated amendments | Town argued PBT never established a prima facie case, repeatedly refiled the same deficient claims, and thus litigation became frivolous | Court held the claims were frivolous by the third amended complaint and affirmed fee award |
| Whether the district court abused its discretion in awarding fees | PBT argued the court should have given its amended pleadings closer review and that dismissal-with-leave showed claims weren’t impossible | Town argued the Sullivan/Beach Blitz factors supported fees given lack of support and repeated filings after warning | Court found no abuse of discretion under the Sullivan factors despite some indicia that claims warranted attention; affirmed |
Key Cases Cited
- PBT Real Estate, LLC v. Town of Palm Beach, 988 F.3d 1274 (11th Cir. 2021) (prior appeal rejecting PBT’s § 1983 equal protection and substantive-due-process claims)
- Sullivan v. School Bd. of Pinellas Cnty., 773 F.2d 1182 (11th Cir. 1985) (outlining factors for awarding fees under § 1988)
- Beach Blitz Co. v. City of Miami Beach, 13 F.4th 1289 (11th Cir. 2021) (clarifying importance of whether claim warranted close judicial attention)
- Christiansburg Garment Co. v. EEOC, 434 U.S. 412 (1978) (fees may be awarded if plaintiff continued litigation after claims became frivolous)
- Busby v. City of Orlando, 931 F.2d 764 (11th Cir. 1991) (discussing standards for assessing frivolous constitutional claims)
- United States v. Irey, 612 F.3d 1160 (11th Cir. 2010) (abuse-of-discretion standard and when a court misweights factors)
- United States v. Frazier, 387 F.3d 1244 (11th Cir. 2004) (en banc) (appellate deference where the district court’s discretionary judgment is plausible)
