ROYAL AMERICAN DEVELOPMENT, INC., A FLORIDA CORPORATION, APPELLANT,
v.
CITY OF JACKSONVILLE, FLORIDA, A MUNICIPAL CORPORATION, APPELLEE
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Royal American Development sought damages for preconstruction expenditures after the City of Jacksonville's city council refused to approve final construction contracts for public housing projects, despite the housing authority's recommendation and prior assurances. The court held that the developer was entitled to recover its expenditures under the doctrine of promissory estoppel, as it reasonably relied on the city's representations and complied with all applicable requirements.
Royal American is entitled to recover its preconstruction expenditures under the doctrine of promissory estoppel because it reasonably relied on the city's representations and assurances, complied with all applicable local and federal requirements, and the city council repudiated its promise by refusing to approve the final construction contracts.
[1] A party may recover preconstruction expenditures incurred in reliance on a municipality's representations and assurances, even without a formal preliminary contract, when…
[2] The doctrine of promissory estoppel may apply to prevent a municipality from reneging on assurances made through its public housing authority regarding the approval of co…
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Join FLexlaw to unlock all legal intelligence“Although the city council purported to retain ultimate authority as to approval of the final construction contracts, appellant was entitled to rely on the city's representations made through the public housing authority.”
Establishes that a municipality's agent (the housing authority) can bind the municipality through representations made to contractors, even when the city council retains formal approval authority.
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Join FLexlaw to unlock all legal intelligenceThe Jacksonville City Council authorized application for federal public housing construction funding. The city's housing authority invited proposals, …
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WENTWORTH, Judge.
Appellant seeks review of an order by which judgment was entered for the City of Jacksonville and it was determined that appellant is not entitled to an award of damages for the city’s failure to approve a public housing construction contract. We conclude that appellant is entitled to recover its preconstruction expenditures, and we therefore reverse the order appealed.
After being advised that federal funds were available for the local construction of public housing projects, the Jacksonville City Council enacted ordinances authorizing application for such funding. The city’s public housing authority invited construction proposals, and after the submissions were reviewed selection of appellant’s proposals on two projects was recommended. The Department of Housing and Urban Development (HUD) concurred in this recommendation, and the housing authority then notified appellant that its proposals had been tentatively selected.
The city’s public housing authority also advised appellant that if they could reach a final agreement the housing authority would submit a development program to HUD, requesting a contributions contract which the housing authority would execute when tendered. Due to time constraints for project funding the housing authority instructed appellant that inadequate time remained for the approval of a preliminary-contract addressing payment for appellant’s interim expenditures in the preparation of working drawings and specifications. Upon the urging of the housing authority appellant selected an accelerated procedure by which compensation for these services would be encompassed in the final construction contract. Appellant prepared and submitted working drawings and specifications which were approved as consistent with HUD and local requirements.
The Jacksonville City Council was then presented with proposed ordinances by which the final construction contracts might be approved. However, despite the public housing authority’s recommendation the city council declined to enact these ordinances, thereby refusing to authorize final construction contracts upon appellant’s proposals.
Although the city council purported to retain ultimate authority as to approval of the final construction contracts, appellant was entitled to rely on the city’s representations made through the public housing authority. Having complied with all applicable local and federal requirements, appellant made preconstruction expenditures without a preliminary contract at the city’s urging and with assurances that a final contract would be forthcoming. Upon the city council’s repudiation of this promise appellant became entitled to recover its expenditures pursuant to the doctrine of promissory estoppel as espoused in Baxter’s Asphalt, etc. v. Liberty County, 406 So. 2d 461 (Fla. 1st DCA 1981), on pet. for rehearing, reversed on other grounds 421 So. 2d 505 (Fla.1982).
See also, City of North Miami v. Margulies, 289 So. 2d 424 (Fla. 3d DCA 1974).
While these cases may be factually distinguishable, they nevertheless establish the applicability of the doctrine of estoppel in the circumstances of the present case. Appellant reasonably relied on the city’s representations and assurances, and is entitled to be remedied for the city council’s repudiation by reimbursement of preconstruction expenditures.
The order appealed is reversed and the cause remanded for further proceedings consistent herewith.
BOOTH, C.J., and ZEHMER, J., concur.
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City OF Cape Coral v. Water Servs. OF Am., Inc., 567 So. 2d 510 (Fla. 2d DCA 1990)…possibly be awarded the bid as the low, responsive and responsible bidder. The trial judge was, therefore, correct in awarding WSA its bid preparation costs and prejudgment interest thereon. Royal American Development, Inc. v. City of Jacksonville, 508 So. 2d 528 (Fla. 1st DCA 1987); State Mechanical Contractors, Inc. [*513] v. Village of Pleasant Hill, 132 Ill.App.3d 1027, 87 Ill.Dec. 532, 477 N.E. 2d 509 (4th Dist.1985); Owen of Georgia, Inc. v. Shelby County, 648 F. 2d 1084 (6th Cir.1981). However, we do…
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Devon Med., Inc. v. Ryvmed Med., Inc., 60 So. 3d 1125 (Fla. 4th DCA 2011)…uld be unjust to allow a recovery for loss of profits based on the theory of promissory estoppel due to a violation of a public bidding statute”), reversed, on other grounds by 421 So. 2d 505 (Fla.1982); Royal Am. Dev., Inc. v. City of Jacksonville, 508 So. 2d 528, 529 (Fla. 1st DCA 1987) (allowing “precon-struction expenditures”); City of Cape Coral v. Water Servs. of Am., Inc., 567 So. 2d 510, 512-14 (Fla. 2d DCA 1990) (allowing “bid preparation costs” but expressly excluding lost profits). Even those juri…
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Am. States Ins. Co. v. McGUIRE, 510 So. 2d 1227 (Fla. 1st DCA 1987)…nably expect to induce action or forbearance of a substantial character on the part of the promisee.” Mount Sinai Hospital of Greater Miami, Inc. v. Jordan, 290 So. 2d 484, 486 (Fla.1974); Royal American Development v. City of Jacksonville, Florida, 508 So. 2d 528 (Fla. 1st DCA 1987); Baxter’s Asphalt & Concrete, Inc. v. Liberty County, 406 So. 2d 461, 366 (Fla. 1st DCA 1981), on petition for rehearing; reversed on other grounds, 421 So. 2d 505 (Fla.1982); Allen v. A.G. Edwards & Sons, Inc., 606 F. 2d 84, 87…
Previewing 3 of 4 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Liberty Cnty. v. Baxter's Asphalt & Concrete, Inc., 421 So. 2d 505 (Fla. 1982)
- Baxter's Asphalt & Concrete, Inc. v. Liberty Cnty., 406 So. 2d 461 (Fla. 1st DCA 1981)
- City OF N. Miami v. Margulies, 289 So. 2d 424 (Fla. 3d DCA 1974)