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LTC 099-2024 Court Victory in Juan A. Garcia, Jr. v. Cuyahoga Wrecking CorpMIAMI BEACH OFFICE OF THE CITY ATTORNEY L TC No. ___099-2024____ _ LETTER TO COMMISSION TO: Mayor Steven Meiner and Members of the City Commission FROM: DATE: Rafael A. Paz, City Attorney � March 20, 2024 SUBJECT: Court Victory in Juan A. Garcia, Jr. v. Cuyahoga Wrecking Corp. The purpose of this L TC is to advise you of last week's court victory in Juan A. Garcia, Jr. v. Cuyahoga Wrecking Corp., whereby the City obtained a final summary judgment in its favor on indemnity claims brought by the Florida Department of Environmental Protection ("FDEP") and worth potentially millions of dollars. The lawsuit arises from an incident on February 1, 1989, when plaintiff Juan A. Garcia, Jr. allegedly dove into the water near the then-recently-demolished South Beach Pier and suffered a serious bodily injury. The plaintiff claims he struck his head on underwater debris from the demolition, and that the City and FDEP were each negligent in their management of the beach area and the demolition process/cleanup. The plaintiff and his parents ("Plaintiffs") filed their lawsuit in 1991. The City hired an outside law firm to represent its interests and, in 1997, reached a full settlement with Plaintiffs for $1.25 million, which was paid in full pursuant to a legislative claim bill passed in 1998. However, the City and FDEP had pre-existing contractual relationships via a beach Management Agreement from 1982 and a related Permit from 1984. These contracts included a provision that the City indemnify FDEP for all claims of liability arising out of the use of the beach property, to the extent allowed by the Laws of Florida, or arising out of work authorized by the Permit. Despite the City having resolved Plaintiffs' claims against it more than two decades ago, Plaintiffs' claims against FDEP have not yet been resolved. On January 10, 2020, FDEP filed a Third-Party Complaint against the City for contractual and common-law indemnity based on FDEP's potential exposure of liability to Plaintiffs-which could possibly total millions of dollars. We ore committed to providing excellent public service and safety to o/1 who live, work, and ploy in our vibrant, tropical, historic community. Letter to Commission March 20, 2024 Page 2 The City’s in-house litigation team has vigorously defended the City against these claims. Last Thursday, Judge Vivianne Del Rio entered an Order granting summary judgment in the City’s favor on the entire Third.Party Complaint, and on Friday, the Court entered final judgment for the City. Judge Del Rio held that FDEP’s claims against the City were not timely asserted and therefore barred under the doctrines of laches and/or waiver, due to the prejudice suffered by the City. Specifically, FDEP sat on its hands for over 20 years before filing the Third- Party Complaint, and in the meantime, the City’s outside counsel’s law firm had disbanded and the City destroyed its case file, consistent with public records retention policies of the State of Florida. FDEP’s decades-long delay in filing their indemnity claims put the City at an unfair disadvantage, given the extreme passage of time. In addition, the Judge further held that FDEP’s claims were barred by sovereign immunity. The City’s summary judgment motion was litigated entirely in-house by First Assistant City Attorney Henry J. Hunnefeld and Senior Assistant City Attorney Freddi Mack. A copy of the Court’s Order is attached. The Order is not yet considered final, as FDEP still has the opportunity to appeal. As always, please feel free to contact me or Rob Rosenwald for further information about this or any City litigation matter. RAP/RFR/ag We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical. historic community. IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA CASE NO: 1991-026591-CA-01 SECTION: CA05 JUDGE: Vivianne Del Rio Garcia, Juan A (Jr) Plaintiff(s) vs. Cuyahoga Wrecking Corp Defendant(s) ____________________________/ ORDER GRANTING CITY OF MIAMI BEACH'S MOTION FOR FINAL SUMMARY JUDGMENT ON THIRD-PARTY COMPLAINT THIS CAUSE came before the Court on Third-Party Defendant, THE CITY OF MIAMI BEACH, FLORIDA’s (the “City”), Motion for Final Summary Judgment on Third-Party Complaint (D.E. 95) (the “Motion”). THE COURT has considered the Motion, the response filed by Third-Party Plaintiff, FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION (“FDEP”) (D.E. 110) (the “Response”), the City’s reply (D.E. 112), and pertinent parts of the record. The Court also heard argument of counsel on February 28, 2024 (see D.E. 109), and requested the submission of competing proposed orders. Being duly advised in the premises, it is ORDERED AND ADJUDGED that the Motion is GRANTED for the reasons set forth below. STATEMENT OF UNDISPUTED MATERIAL FACTSI. The Court finds that the following facts are undisputed: Case No: 1991-026591-CA-01 Page 1 of 18 Filing # 194063696 E-Filed 03/14/2024 05:35:29 PM The Underlying ComplaintA. This case arises from alleged injuries sustained by the underlying plaintiff, JUAN A. GARCIA, JR. (“Plaintiff”), when he dove into the water at South Beach in Miami Beach, Florida on or about February 1, 1989 (the “Incident”). 1. As a result of his alleged injuries, Plaintiff and his parents (collectively, “Plaintiffs”) sued the City and FDEP,[1] among others, for negligence in the above-captioned case. A true and correct copy of the underlying Fourth Amended Complaint (the “Underlying Complaint”) is attached as Exhibit A to the Third-Party Complaint, which is Exhibit 1 to the City’s Motion. 2. As it relates to this case, the relationship between FDEP and the City arises from a 1982 Management Agreement, and a related 1984 Permit, whereby the City agreed to manage and supervise a portion of South Beach owned by FDEP, including by demolishing a pier located on FDEP’s property. See Third-Party Compl. ¶¶ 10–14. 3. Plaintiffs allege that the City demolished the South Beach Pier and failed to adequately remove debris in the water. See Underlying Compl. ¶¶ 77–78. 4. Plaintiffs further allege that Plaintiff dove into the water at the South Beach Pier and hit the underwater debris, causing him to suffer permanent injury. See id. ¶ 16. 5. But FDEP—not the City—owned the property. See Third-Party Compl. at Ex. B (Management Agreement); see also Underlying Compl. ¶ 59. 6. According to the Underlying Complaint, FDEP had exclusive and/or concurrent power and control of the planning, design, engineering, construction, repair and/or operation of flood control, beach erosion and hurricane projection projects pursuant to applicable Federal Laws. See Underlying Compl. ¶ 62. 7. According to the Underlying Complaint, FDEP further owed a duty to the general public to maintain, operate, and/or control South Beach in a reasonably safe manner pursuant to an 8. Case No: 1991-026591-CA-01 Page 2 of 18 agreement made with the United States of America under the Florida Control Act. See id. ¶¶ 63–65. Importantly, the Underlying Complaint’s sole count against FDEP is based on FDEP’s own direct negligence for, inter alia, allowing a known unreasonably dangerous condition to exist, failing to warn the public, and allowing the demolition of the pier and the clean up and removal of the debris therefrom to be performed without compliance with the issued permits. See id. ¶¶ 58–73. 9. The Underlying Complaint does not contain any vicarious liability cause of action. In other words, FDEP is not alleged to be vicariously liable for the City’s alleged negligence. See generally Underlying Complaint. FDEP Sends a May 30, 1996 Pre-Suit Letter to the City, But Takes No Further Action Against the City for Nearly 23 Years B. 10. By letter dated May 30, 1996, FDEP sent a pre-suit letter to the City, tendering Plaintiffs’ claim against it. See Third-Party Compl. at Ex. D. 11. FDEP then sat on its rights and took no further action against the City until sending a renewed demand dated January 14, 2019—nearly 23 years later. See Third-Party Compl. at Ex. E. The City is Subject to, and Satisfies, a $1.25 Million Consent JudgmentC. 12. In the interim, the City reached a full and final settlement with Plaintiffs for Plaintiffs’ claims against the City only. This settlement was approved via entry of a Consent Final Judgment dated February 21, 1997 and recorded at the Miami-Dade County Official Records Book 17539, Page 2220. Copies of the subject Settlement Agreement and the Consent Final Judgment are attached to the City’s Motion as Exhibits 2 and 3, respectively. 13. The Settlement Agreement and Consent Final Judgment fully and finally resolved and 14. Case No: 1991-026591-CA-01 Page 3 of 18 released all of Plaintiffs’ claims against the City arising out of the Incident but purported to preserve Plaintiffs’ claims against all other parties. See Mot. Ex. 2 & 3. The City satisfied the Consent Final Judgment in the amount of $1,250,000 pursuant to a legislative claim bill, HB 1771 (1998) (the “Claim Bill”), authorizing/directing the City to appropriate the settlement funds to pay Plaintiffs. A copy of the Claim Bill is attached to the City’s Motion as Exhibit 4. 15. The Claim Bill became law on April 4, 1998. See Bill History, attached to the City’s Motion as Exhibit 5. 16. The City promptly satisfied the Consent Final Judgment via two checks: Check # 1000847 (in the amount of $200,000, the statutory sovereign immunity cap) and Check # 1001758 (for the balance of $1,050,000, as authorized by the Claim Bill). See City’s Motion at Exhibit 6, Affidavit of Robert Aragon at ¶ 5. 17. On July 2, 1998, in recognition of the judgment satisfaction, the Court docketed its Order of Dismissal with Prejudice as to the City, recorded at the Miami-Dade County Official Records Book 18175, Page 0910 and attached to the City’s Motion as Exhibit 7. 18. The City’s claim file for Plaintiffs’ claim was closed on January 23, 2002. See Mot. Ex. 6, Aragon Affidavit ¶ 6. 19. At all material times prior to January 23, 2002, the City was represented by outside counsel—namely, the law firm of Zack Kosnitzky P.A., a/k/a Zack Hanzman Ponce Tucker P.A., a/k/a Zack Sparber et al. This law firm no longer exists. See id. ¶ 7. More than Two Decades Later, FDEP Files the Third-Party Complaint Seeking Indemnity Against the City D. 20. After the City satisfied the Consent Final Judgment in 1998, the City was not a party to any further litigation concerning this case for more than two decades. See Mot. Ex. 6 at ¶ 9. 21. Case No: 1991-026591-CA-01 Page 4 of 18 In the meantime, the City had closed the claim file; the City’s outside counsel’s law firm had been disbanded; and the City’s underlying litigation file had been destroyed consistent with state-law document retention policies. Id. at ¶¶ 6–8. 22. However, on January 10, 2020—more than 23 years after it sent the pre-suit demand letter dated May 30, 1996, and more than 20 years after the City satisfied the Consent Final Judgment to Plaintiffs—FDEP filed the Third-Party Complaint against the City, seeking indemnification for Plaintiffs’ claims against FDEP. See Third-Party Complaint; see also Mot. Ex. 6 at ¶ 10. 23. Specifically, the Third-Party Complaint asserts the following counts against the City: (1) Declaratory Judgment Action, seeking a declaration that the City owes a duty of defense and indemnity to FDEP; (2) Contractual Indemnification Under the 1982 Management Agreement; (3) Contractual Indemnification Under the 1984 Permit; and (4) Common Law Indemnity. See Third-Party Complaint. 24. These third-party causes of action were available to FDEP at least as early as May 30, 1996.25. The City is and was prejudiced by FDEP’s delay in asserting the claims in the Third-Party Complaint given that critical information is no longer available to the City. See Mot. Ex. 6 at ¶ 11. 26. SUMMARY JUDGMENT STANDARDII. Effective May 1, 2021, the Florida Supreme Court amended Florida Rule of Civil Procedure 1.510(c) to adopt the Federal summary judgment standard of Celotex Corp. v. Catrett, 477 U.S. 317 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986); and Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574 (1986). See In re: Amendments to Florida Rule of Civil Procedure 1.510, 309 So. 3d 192 (Fla. 2020). “[T]he federal summary judgment standard ‘mirrors’ the standard for a directed verdict.” Id. Case No: 1991-026591-CA-01 Page 5 of 18 (citing Anderson, 477 U.S. at 250). Summary judgment is appropriate if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. Fla. R. Civ. P. 1.510(c). The movant may meet its burden by demonstrating that there is a lack of evidence to support the essential elements that the nonmovant must prove at trial. Celotex, 477 U.S. at 322–23. If the movant satisfies that standard, the burden shifts to the nonmovant to “come forward with specific facts showing that there is a genuine issue for trial.” Matsushita, 475 U.S. at 587 (quotation marks and citation omitted). For a nonmovant to avoid summary judgment, a factual dispute must be both material and genuine. Anderson, 477 U.S. at 247–48. A fact is “material” if it “might affect the outcome of the suit under the governing law.” Id. at 248. To raise a “genuine” dispute, the nonmovant must point to enough evidence that “a reasonable jury could return a verdict” for it. Id.; see also In Re: Amendments to Florida Rule of Civil Procedure 1.510, 317 So. 3d 72 (Mem.) (Fla. 2021). AS A MATTER OF LAW, THE CITY IS ENTITLED TO SUMMARY JUDGMENT ON WAIVER/LACHES GROUNDS III. Calling this case “unique” would be an understatement. The underlying Incident occurred in February of 1989—more than 35 years ago from the date of this Order. The Underlying Action has been pending since 1991—approximately 33 years. The City “bought peace” via the Settlement Agreement, Consent Final Judgment, and Claim Bill more than 20 years before FDEP filed its Third-Party Complaint. The undisputed facts show that the City has been highly prejudiced by FDEP’s delay in filing the Third-Party Complaint. The more than two-decades-long period between FDEP’s 1996 pre-suit letter and its 2020 filing of the Third-Party Complaint put the City off its guard and led the City to believe that FDEP had waived the alleged indemnity right. The extreme facts of this case—a 20-plus year delay by FDEP in bringing the Third-Party Complaint—are such that the only reasonable result is to grant summary judgment to the City on the basis of waiver/laches. Case No: 1991-026591-CA-01 Page 6 of 18 Laches requires “proof of (1) lack of diligence by the party against whom the defense is asserted, and (2) prejudice to the party asserting the defense.” McCray v. State, 699 So. 2d 1366, 1368 (Fla. 1997) (quoting Costello v. United States, 365 U.S. 265, 282 (1961)). Likewise, “waiver is the intentional or voluntary relinquishment of a known right and may be inferred from conduct or acts putting one off his guard and leading him to believe that the demanding party has waived the right sought to be enforced.” Popular Bank of Fla. v. R.C. Asesores Financieros, C.A., 797 So. 2d 614, 619 (Fla. 3d DCA 2001). Under either test, the City is entitled to summary judgment. Here, FDEP’s conduct in delaying the filing of the Third-Party Complaint by more than two decades after the City reasonably believed it was fully out of this case rises to the level of waiver/laches. FDEP possessed all the material facts to assert the Third-Party Complaint but failed to do so. FDEP’s decades-long inaction put the City off its guard and led the City to believe that FDEP waived any indemnity rights it may have. See Popular Bank, 797 So. 2d at 619. Further, FDEP’s lack of diligence in filing the Third-Party Complaint has caused the City significant prejudice—namely, the unavailability of critical records and the inaccessibility of the City’s former law firm, which has since been disbanded. See McCray, 699 So. 2d at 1368. The McCray case is instructive here. There, a convicted criminal defendant waited fifteen years to bring a habeas corpus petition based on an alleged error at his trial (reference to a collateral crime). Id. The Court noted that this presented “a perfect example of why the doctrine of laches should be applied” in the face of such delay: the defendant offered no representation as to the reason for his delay, and the facts had been available to him for at least the full fifteen years. Id. The prejudice to the State was evident in the State’s inability to cogently respond to the claim: “As time goes by, records are destroyed, essential evidence may become tainted or disappear, memories of witnesses fade, and witnesses may die or be otherwise unavailable.” Id. All in all, the claim “could and should have been raised many years ago” and was barred by laches. Id. This case is just the same. FDEP could and should have filed its Third-Party Complaint Case No: 1991-026591-CA-01 Page 7 of 18 decades ago, so that when the City was resolving its claims by Plaintiffs, it could have globally resolved any purported indemnity claim. The City reasonably believed that its $1.25 million Consent Final Judgment, entered in 1997, was buying peace. After satisfying that judgment in 1998, the City disposed of its litigation file and no longer has access to its outside counsel’s law firm, which has been disbanded. It is highly prejudicial for FDEP to assert the indemnity claims more than 20 years later when it knew about the claims well before the Consent Final Judgment was entered. It is true that a claim for indemnity does not accrue “until the indemnitee has paid a judgment, or has made a voluntary payment of its legal liability to an injured party.” Scott & Jobalia Const. Co. v. Halifax Paving, Inc., 538 So. 2d 76, 79 (Fla. 5th DCA 1989). Thus, technically, FDEP’s indemnity claims against the City still have not accrued. But this is not the City’s fault. “Where strong equities appear, of course, laches may be applied before the statute of limitations has expired.” Smith v. Branch, 391 So. 2d 797, 798 (Fla. 2d DCA 1980). For example, in the case of Idoni v. Ungurean, the plaintiff knew that his car racing parts had been unlawfully taken (conversion), placed in another vehicle, and subsequently sold to multiple purchasers, but he “sat on his rights for approximately eight years” before filing a conversion and replevin lawsuit. No. 6:14-cv-102-Orl-41GJK, 2016 WL 7177619, at *6 (M.D. Fla. Mar. 25, 2016) (applying Florida law). The claims were not barred by the statute of limitations, based on the date that the defendants purchased the vehicle, id. at *4, but the claims were nevertheless barred by laches because of the prejudice the defendants suffered on account of the plaintiff’s delay, id. at *6. “Thus, even though Plaintiff's causes of action are not barred by the statute of limitations, this case presents the scenario where ‘strong equities’ require the application of laches ‘before the statute of limitations has expired.’” Id. (quoting Smith, 391 So. 2d at 798). It is hard to imagine a set of facts with stronger equities than the present case. As explained Case No: 1991-026591-CA-01 Page 8 of 18 at length in the Motion, the City fully settled the claims against it in 1997 and satisfied the Claim Bill in 1998. FDEP took no action against the City for over two decades. In the meantime, the City had closed the claim file; the City’s outside counsel’s law firm had been disbanded; and, upon information and belief, the City’s underlying litigation file had been destroyed consistent with state-law document retention policies. Through no fault of the City’s, Plaintiffs’ claim against FDEP has languished. The City would suffer tremendous prejudice by being dragged back into this case and being forced to litigate its alleged negligence, after already paying for and being released from such liability, and after the loss of critical files and witnesses. In sum, even if the statute of limitations on an indemnity claim has not accrued, FDEP’s decision to sit on its rights for over twenty-three (23) years calls for summary judgment on the City’s waiver/laches defense. Cf. McCray, 699 So. 2d at 1368. It is important to note that indemnity claims are a rare breed under Florida law: they can be filed even before they have accrued. See, e.g., Rea v. Barton Protective Servs., Inc., 660 So. 2d 772, 773 (Fla. 4th DCA 1995) (authorizing indemnification claims to be filed “prior to the resolution of the defendant’s liability to the plaintiff”), cited with approval by Dade Cnty. Sch. Bd. v. Radio Station WQBA, 731 So. 2d 638, 643–44 (Fla. 1999); see also Mims Crane Serv., Inc. v. Insley Mfg. Corp., 226 So. 2d 836, 840–42 (Fla. 2d DCA 1969) (explaining that the reason for permitting an indemnity claim to be filed together with the underlying action is to avoid expense and delay); Jerome Naglebush, Inc. v. Frank J. Rooney, Inc., 342 So. 2d 121, 122 (Fla. 3d DCA 1977) (same);. For waiver/laches purposes, this means that FDEP has no justification for sitting on its rights. It could have filed the Third-Party Complaint in 1996, or 1997, or 1998, 1999, 2000, 2001, and so on—at some point in time before the City suffered the loss of crucial information to defend itself. Waiver/laches bars FDEP’s long-delayed indemnity claims. AS A MATTER OF LAW, SOVEREIGN IMMUNITY BARS THE CITY FROM INDEMNIFYING FDEP IV. Case No: 1991-026591-CA-01 Page 9 of 18 Additionally, or alternatively, the City is entitled to summary judgment based on the doctrine of sovereign immunity. This is so for at least three reasons. The Sovereign Immunity Statute and Public Policy Bar the City from Indemnifying FDEP for FDEP’s Own Negligence A. First, by operation of Florida Statutes section 768.28(19)[2]: a contract between any two subdivisions of the State of Florida “must not contain any provision that requires one party to indemnify or insure the other party for the other party’s negligence or to assume any liability for the other party’s negligence.” An examination of the Underlying Complaint reveals that Plaintiffs hope to hold FDEP liable for FDEP’s own negligence—not the City’s. Thus, the City cannot indemnify FDEP. The Third District Court of Appeal has already ruled that, because FDEP owned the beach where the Incident occurred, FDEP owed a non-delegable duty of care to swimmers like Plaintiff. Garcia v. State, Dep’t of Natural Res., 707 So. 2d 1158 (Fla. 3d DCA 1998), approved in relevant part and reversed on other grounds, 753 So. 2d 72 (Fla. 2000). The performance of FDEP’s duty could be delegated to the City, but the actual responsibility for the duty cannot. Garcia, 707 So. 2d at 1159–60. A claim against a property owner for breach of a non-delegable duty is a direct claim, not a vicarious one. See, e.g., Armiger v. Associated Outdoor Clubs, Inc., 48 So. 3d 864, 874 (Fla. 2d DCA 2010) (noting that “liability for the breach of a nondelegable duty arises from direct—instead of imputed—liability” (emphasis in original) and collecting cases).[3] Plaintiffs did not plead any vicarious liability cause of action against FDEP, see Underlying Complaint. This is germane because “Florida law is clear that in order to pursue a vicarious liability claim, the claimant must specifically plead it as a separate cause of action.” General Asphalt Co. v. Bob’s Barricades, Inc., 22 So. 3d 697, 699 (Fla. 3d DCA 2009) (citing Goldschmidt v. Holman, 571 So. 2d 422 (Fla. 1990)). In General Asphalt, an injured motorist sued General Asphalt (a contractor) and Bob’s Case No: 1991-026591-CA-01 Page 10 of 18 Barricades (General Asphalt’s subcontractor). Id. at 698. [In this case, General Asphalt is comparable to FDEP, and Bob’s Barricades is comparable to the City.] Bob’s Barricades settled with the injured motorist, and the settlement preserved any claims the motorist might have against General Asphalt for General Asphalt’s direct negligence. Id. When General Asphalt sued Bob’s Barricades for indemnification, Bob’s Barricades moved for summary judgment, saying it had satisfied its duties. Id. The Third District Court of Appeal affirmed summary judgment for Bob’s Barricades, holding that (1) Bob’s Barricades settled the claims of its own negligence, (2) the motorist “failed to allege any vicarious liability claims in her complaint” so General Asphalt could not be held vicariously liable for Bob’s Barricades’ negligence, and (3) the only remaining claim was for General Asphalt’s own direct negligence. Id. at 699.[4] General Asphalt is directly applicable to the facts here. The City settled all claims relating to its direct negligence. There are no vicarious liability counts in the Underlying Complaint.[5] What remains is only Plaintiffs’ claim that FDEP was directly negligent. Thus, Section 768.28(19) is triggered: the City cannot indemnify FDEP for FDEP’s own negligence.[6] For the same reason, FDEP’s common-law indemnification count (Count IV) fails. At common law, only a completely faultless party can seek indemnity from the party who is wholly at fault. See, e.g., Houdaille Indus., Inc. v. Edwards, 374 So. 2d 490, 492–93 (Fla. 1979); Dade Cnty. Sch. Bd. v. Radio Station WQBA, 731 So. 2d 638, 642 (Fla. 1999) (“[T]he party seeking indemnification must be without fault, and its liability must be vicarious and solely for the wrong of another.”). Common-law indemnity “can only be applied where the liability of the person seeking indemnity is solely constructive or derivative and only against one who, because of his act, has caused such constructive liability to be imposed.” Houdaille Indus., 374 So. 2d at 493 (emphasis added). By contrast, where—as here—the party seeking indemnity (FDEP) is not facing liability solely because of vicarious liability, but rather is facing its own direct liability, then indemnity is unavailable. See id.; see also id. at 494 (where two parties were each at fault, “no Case No: 1991-026591-CA-01 Page 11 of 18 matter how slight the fault of the former,” one party could not seek indemnity from the other). In sum, because FDEP was directly negligent (if at all) because of its non-delegable duty to Plaintiff, the City cannot indemnify FDEP for its own negligence, so the indemnity claims in the Third-Party Complaint must be denied “Cap-Stacking” is ImpermissibleB. Second, sovereigns like FDEP have authorized a limited waiver of sovereign immunity for tort, and only to the extent expressly provided for in Florida Statutes section 768.28. The damages cap under section 768.28 applies in the aggregate, and a plaintiff cannot “stack” the cap amounts by getting successive judgments against different government entities. See, e.g., Vasquez v. Bd. of Regents, State of Fla., 548 So. 2d 251, 254 (Fla. 2d DCA 1989) (citing Gerard v. Dep’t of Transp., 472 So. 2d 1170 (Fla. 1985)). In Vazquez, the plaintiff brought a medical negligence action against several individual doctors as well as two separate sovereigns: (1) the Hillsborough County Hospital Authority and (2) the Board of Regents that implemented an educational function carried out through the College of Medicine and its faculty. Id. at 251–52. The plaintiff settled her claim against the Hospital Authority and the resident physicians for the limit of the sovereign immunity cap (then $100,000). Id. at 252. Nevertheless, the plaintiff continued to pursue her claim against the Board of Regents. Id. On summary judgment, the trial court determined that, under section 768.28, “the maximum amount recoverable from all defendants was $100,000; that the Hospital Authority’s settlement with [plaintiff] represented the maximum recovery allowable; and that the release of [the resident physicians] and the Hospital Authority acted, as a matter of law, as a release of . . . the BOR from any vicarious liability arising from [the physicians’] negligence.” Id. The Second District Court of Appeal affirmed the trial court’s ruling, noting: “In Gerard v. Department of Transportation, 472 So.2d 1170 (Fla.1985), the Florida Supreme Court flatly rejected the notion that a plaintiff can ‘stack’ sovereigns and exceed the statutory limits.” Id. at 254. Case No: 1991-026591-CA-01 Page 12 of 18 Here, just like in Vazquez, because Plaintiffs have exhausted the statutory cap against the City, they cannot obtain a successive judgment against FDEP.[7] Even if they could, they cannot essentially obtain “double recovery” from the City for the same alleged negligence, having already exceeded the sovereign immunity cap against the City by and through the fully-paid-out Claim Bill in 1998. Summary judgment is thus warranted under the doctrine against cap-stacking. Plaintiffs’ Claim Against FDEP is Premised on FDEP’s Alleged Negligence in Delegating Performance of its Duties to the City—an Inherently Planning-Level Decision C. Third, sovereign immunity also bars any claim that FDEP was negligent simply by choosing to delegate to the City the performance of FDEP’s non-delegable duty. Sovereigns like FDEP are protected from both liability and suit under the doctrine of sovereign immunity. Fla. Highway Patrol v. Jackson, 288 So. 3d 1179, 1185 (Fla. 2020). In Florida, “sovereign immunity is the rule, rather than the exception.” Pan-Am Tobacco Corp. v. Dep’t of Corr., 471 So. 2d 4, 5 (Fla. 1984). Florida may waive sovereign immunity, but any waiver of sovereign immunity must be “clear and unequivocal.” Rabideau v. State, 409 So. 2d 1045, 1046 (Fla. 1982). The doctrine is “designed to protect the public treasury from what would otherwise be countless claims filed by vast number of citizens affected by actions of a government.” S. Roadbuilders, Inc. v. Lee Cty., 495 So. 2d 189, 190 n.1 (Fla. 2d DCA 1986). The immunity “is a positively necessary and rational safeguard of taxpayer’s money.” Id. Derived exclusively from the separation of powers provision found in article II, section 3 of the Florida Constitution,[8] sovereign immunity prohibits the judiciary from “second guess[ing] the political and police power” decisions of coordinate branches of government “absent a violation of constitutional or statutory rights.” See Trianon Park Condo. Ass’n v. City of Hialeah, 468 So. 2d 912, 918 (Fla. 1985); Wallace v. Dean, 3 So. 3d 1035, 1045 (Fla. 2009). The doctrine of separation of powers mandates that “certain [quasi-legislative] policy-making, planning or judgmental governmental functions cannot be the subject of traditional tort liability.” Commercial Carrier Case No: 1991-026591-CA-01 Page 13 of 18 Corp. v. Indian River Cty., 371 So. 2d 1010, 1020 (Fla. 1979). Consequently, where governmental actions are deemed discretionary, the government has absolute immunity from suit. Id. at 1020–22. For example, decisions on how the sovereign allocates its resources, enforces its laws, formulates policy, or protects the public are matters usually protected from judicial interference. Trianon, 468 So. 2d at 918–20. To the extent Plaintiffs’ claim against FDEP is based on a theory that FDEP was negligent in deciding to delegate to the City the performance of FDEP’s non-delegable duties, see Underlying Compl. ¶¶ 59–72, that decision is a discretionary, planning-level one that is protected from a tort suit. Indeed, when this very case went up before the Florida Supreme Court in the year 2000, Justice Wells identified this same sovereign immunity concern: The concept of nondelegable duty is contrary to our distinction, for purposes of determining the existence of sovereign immunity, between governmental planning- level and operational-level decisions, upon which Commercial Carrier v. Indian River County, 371 So.2d 1010 (Fla.1979), and its progeny are based. The proper analysis does not determine whether a governmental entity can or cannot delegate a function. Rather, the appropriate question is whether a governmental entity performed an operation itself and, if so, whether the entity exercised reasonable care. The decision as to whether to delegate control or whether to perform a particular operation is a discretionary, planning-level governmental decision into which the courts cannot intrude. Trianon Park Condominium Ass'n, Inc. v. City of Hialeah, 468 So.2d 912, 918 (Fla.1985). Garcia, 753 So. 2d at 78–79 (Wells, J., dissenting) (emphasis added). Ultimately, however, the majority had no occasion to reach this sovereign immunity argument because it had not been properly presented by the parties. See id. at 78 (declining to probe “the issue of the nondelegable duty raised by the dissent”). Now, of course, the issue is properly presented before this Court. Commercial Carrier and Trianon lead to the inescapable conclusion that FDEP cannot be deemed negligent simply for making the planning-level decision to delegate the performance of beach maintenance to the City. To hold otherwise would violate sovereign immunity. Case No: 1991-026591-CA-01 Page 14 of 18 CONCLUSIONIII. For the foregoing reasons, the Court GRANTS the City’s motion for final summary judgment on the basis of waiver/laches and (additionally or alternatively) on sovereign immunity grounds. The Court will separately enter final judgment on the Third-Party Complaint in favor of the City and against FDEP. [1] FDEP’s predecessor-in-interest, named in the Underlying Complaint, is the State of Florida, Department of Natural Resources (“DNR”). For ease of reference, the parties and the Court use the name FDEP throughout. [2] Formerly subsection (18). [3] It is true that there is case-law using the term “vicarious” when describing the liability for breach of nondelegable duty (see Response at 11–18), but as the Armiger Court cogently explained, that term is mere shorthand rather than an accurate description of the basis of the liability (which is, in fact, direct): “The concepts of nondelegable duty and vicarious liability are frequently confused and conflated. … Nevertheless, the occasional imprecision in analysis and joint classification for the purpose of convenience in discussion does not alter the fundamental differences between direct liability for the breach of a nondelegable duty and vicarious liability for the tortious acts of another.” Armiger, 48 So. 3d at 874, 876. [4] At the hearing on the Motion, FDEP attempted to distinguish General Asphalt by pointing out that the settlement agreement in that case released both direct and vicarious liability claims. See 22 So. 3d at 698. That fact is true but immaterial. The Third District Court of Appeal’s ruling was based not on the language of the settlement release, but rather on the language of the underlying complaint: “Bob’s Barricades had a duty to indemnify General Asphalt for any vicarious liability claims. However, the injured motorist failed to allege any vicarious liability claims in her complaint.” Id. at 698–99. So too here. [5] Because the Underlying Complaint asserts no vicarious liability count, FDEP’s arguments about partial setoff for the amounts the City paid (Response at 18–20) are inapposite. [6] FDEP contends that applying section 768.28(19) to the contractual indemnity claims would amount to an unconstitutional impairment of contract. Response at 8–11. But none of FDEP’s cited cases involve a contract between two political subdivisions of the State of Florida. The State is free to regulate its subdivisions, including contracts between them. And the codification of then-section 768.28(18) (now section 768.28(19)) reflects a settled public policy that each subdivision should remain liable for its own negligent acts or omissions, rather than shifting the cost to one Case No: 1991-026591-CA-01 Page 15 of 18 subdivision’s taxpayers for the negligence of the second separate subdivision. See Am. Home Assur. Co. v. Nat’l R.R. Passenger Corp., 908 So. 2d 459, 481 (Fla. 2005) (Quince, J., concurring in part) (recounting legislative Staff Analysis accompanying the enactment of then-section 768.28(18)). Courts routinely refuse to enforce contracts that contravene public policy. E.g., Young v. Progressive S.E. Ins. Co., 753 So. 2d 80 (Fla. 2000); Claire’s Boutiques v. Locastro, 85 So. 3d 1192 (Fla. 4th DCA 2012). [7] FDEP contends that the Third District Court of Appeal “has already ruled” on the City’s cap- stacking argument. See Response at 20–21. The Court disagrees. The case relied upon by FDEP arose from a separately-filed declaratory judgment case between FDEP and Plaintiffs—to which the City was not a party. See State, Dep’t of Envt’l Protection v. Garcia, 99 So. 3d 539 (Fla. 3d DCA 2011). In that case, the Court held that it was improper for FDEP to file a separate declaratory-judgment suit “presenting the issue of whether section 11.065(2) precluded the Garcias from presenting a claims bill for any excess judgment” in lieu of moving for summary judgment in the Underlying Action here, and further held that the trial court lacked jurisdiction to enter such a declaratory judgment. State, Dep’t of Envt’l Protection v. Garcia, 99 So. 3d 539, 542–45. The Third District then assumed without deciding that Plaintiffs could obtain an excess judgment against FDEP; if that were to occur, the Third District commented that section 11.065(2) did not bar Plaintiffs from requesting a second claim bill, as the decision whether or not to pass a claims bill and pay any or all of a claim is entirely a legislative function completely independent of judicial intervention. As a result, not only is the determination regarding whether a claims bill may be submitted premature at this point, it is not clear how a judicial determination whether a claims bill may be submitted to the Legislature can have any real effect when the Legislature conducts it own independent, de novo hearing to determine whether to expend public funds to pay the claim. Id. at 545. Moreover—and critically here—the Court noted that Plaintiffs do not even need to obtain an excess judgment in order to request a second claim bill: “[Plaintiffs] are always free to go directly to the Legislature with their claim against [FDEP], without a judgment in hand, and pursue the non-judicial, purely legislative, claims bill process.” Id. at 546. But because the Court’s ultimate holding was that the trial court lacked jurisdiction over the declaratory action, these comments about the claim bill process are only dicta. In short, the Third District was only considering whether there was a bona fide, actual, present need for a declaration on the effect of section 11.065(2), Florida Statutes, on Plaintiffs’ ability to request a second claim bill. See id. at 544–45. The Third District was not asked to, and did not, decide whether any other law would preclude Plaintiffs from obtaining a judgment in excess of the statutory cap. Case No: 1991-026591-CA-01 Page 16 of 18 The City’s Motion is different. It does not make a section 11.065(2) argument at all. Instead, the City explains that sovereign immunity waivers must be “strictly construed” and that the expressly- imposed “cumulative per-incident limitation on aggregate recovery” found in section 768.28(5), Florida Statutes, applies “regardless of whether the source of payment is a single governmental entity or multiple governmental entities.” Gerard, 472 So. 2d at 1172. In other words, a plaintiff cannot exhaust the cap in section 768.28(5) from one sovereign and then “stack” judgments in excess of the cap from other sovereigns. Vasquez, 548 So. 2d at 254. That is precisely what Plaintiffs here propose to do. [8] Article II, section 3 of the Florida Constitution provides that: “The powers of the state government shall be divided into legislative, executive and judicial branches. No person belonging to one branch shall exercise any powers appertaining to either of the other branches unless expressly provided herein.” DONE and ORDERED in Chambers at Miami-Dade County, Florida on this 14th day of March, 2024. 1991-026591-CA-01 03-14-2024 5:01 PM Hon. Vivianne Del Rio CIRCUIT COURT JUDGE Electronically Signed No Further Judicial Action Required on THIS MOTION CLERK TO RECLOSE CASE IF POST JUDGMENT Electronically Served: Alexander R Rodriguez, arodriguez@areceslaw.com Alexander Rodriguez, arodriguez@areceslaw.com Alexander Rodriguez, mareces@areceslaw.com Alvaro F Areces, fareces@areceslaw.com Benjamin Z Braun, benjaminbraun@miamibeachfl.gov Benjamin Z Braun, sandraperez@miamibeachfl.gov Benjamin Z Braun, merarimotola@miamibeachfl.gov Freddi Rebecca Mack, freddimack@miamibeachfl.gov Case No: 1991-026591-CA-01 Page 17 of 18 Freddi Rebecca Mack, merarimotola@miamibeachfl.gov Freddi Rebecca Mack, sandraperez@miamibeachfl.gov Henry J Hunnefeld, henryhunnefeld@miamibeachfl.gov Henry J Hunnefeld, sandraperez@miamibeachfl.gov Henry J Hunnefeld, merarimotola@miamibeachfl.gov Mark Fishman, markfishman@miamibeachfl.gov Mark Fishman, bonniestewart@miamibeachfl.gov Patrick Alexander Alayon, palayon@alayonlaw.com Patrick Alexander Alayon, pleadings@alayonlaw.com Patrick Alexander Alayon, nboix@alayonlaw.com Richard A. Alayon, pleadings@alayonlaw.com Richard A. Alayon, ralayon@alayonlaw.com Robert F. Rosenwald Jr., robertrosenwald@miamibeachfl.gov Robert F. Rosenwald Jr., miriammerino@miamibeachfl.gov Robert F. Rosenwald Jr., robertrosenwald@aim.com Yoe Lopez, yoelopez@miamibeachfl.gov Yoe Lopez, bonniestewart@miamibeachfl.gov Physically Served: Case No: 1991-026591-CA-01 Page 18 of 18