West Flagler Associates, Ltd. v. Florida Department of Business & Professional Regulation, Division of Pari-Mutuel Wagering
216 So. 3d 692
| Fla. Dist. Ct. App. | 2017Background
- West Flagler filed an application (Sept. 3, 2015) for a new summer jai alai permit under § 550.0745(1) based on the 2011–2012 and 2012–2013 fiscal years after an eligible permittee declined to convert its permit.
- Section 550.0745(1) contains two sentences: (1) establishes conversion eligibility for a permittee whose mutual play for the "2 consecutive years next prior" to filing was the smallest in the county; (2) provides that if an eligible permittee declines to convert, "a new permit is hereby made available" in that county.
- The Division denied West Flagler’s application, reasoning the "2 consecutive years next prior" timing requirement applied to the new-permit vacancy created when a permittee declines conversion, and that the years West Flagler relied on were not the two years "next prior" to its 2015 application.
- West Flagler sought an informal administrative hearing, arguing the "next prior" timing language applies only to conversion applicants (first sentence), not to the separate "new permit" opportunity (second sentence).
- The hearing officer and the Division agreed with the Division’s broader reading and denied the application; West Flagler appealed the Division’s Final Order to the district court.
- The First DCA reversed: it held the statute creates two distinct avenues (conversion and creation of a new permit) and the timing phrase "2 consecutive years next prior" applies only to the conversion eligibility sentence, not to the separate new-permit sentence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the "2 consecutive years next prior" timing requirement applies to applications for a "new permit" made available when an eligible permittee declines to convert | West Flagler: the timing phrase applies only to conversion applicants (first sentence); the second sentence creates a new permit without that timing limitation | Division: the "next prior" language governs both conversion and the subsequent new-permit availability; thus West Flagler’s years were not the two "next prior" years | The court held the timing requirement applies only to conversion applications; the Division improperly imposed it on the separate new-permit opportunity, so reversal was required |
| Whether the Division’s interpretation—entitled to deference—must be upheld despite conflicting with the statute’s plain meaning | West Flagler: agency deference yields to plain statutory meaning; the Division’s conflation is inconsistent with the statute’s text | Division: its construction should be given substantial weight as the administering agency | The court acknowledged agency deference but concluded the Division’s interpretation was contrary to the statute’s plain language and thus not entitled to deference; reversal followed |
Key Cases Cited
- W. Flagler Assocs., Ltd. v. Dep’t of Bus. & Prof’l Regulation, Div. of Pari-Mutuel Wagering, 139 So. 3d 419 (Fla. 1st DCA 2014) (prior appellate discussion of summer jai alai permit issues)
- Shell Harbor Grp., Inc. v. Dep’t of Bus. Regulation, Div. of Alcoholic Beverages & Tobacco, 487 So. 2d 1141 (Fla. 1st DCA 1986) (agency construction is entitled to great weight)
- PAC for Equality v. Dep’t of State, Fla. Elections Comm’n, 542 So. 2d 459 (Fla. 2d DCA 1989) (agency view not followed when contrary to statute’s plain meaning)
- S. Fla. Racing Ass’n v. State, Dep’t of Bus. & Prof’l Regulation, Div. of Pari-Mutuel Wagering, 201 So. 3d 57 (Fla. 3d DCA 2015) (context: eligible permittee declined to convert, producing vacancy)
