STATE OF FLORIDA, DEPARTMENT OF TRANSPORTATION, APPELLANT,
v.
JACOB SCHATT AND TEXACO, INC., APPELLEES

Fla. 2d DCA | 1988-02-03
No. 87-1171
FRANK and PARKER, JJ., concur.
519 So. 2d 708 Florida District Court of Appeal, Second District (1988) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

The Florida Department of Transportation challenged a trial court award of business damages to Texaco, a sublessor of an automobile service station on property partially taken by eminent domain. The court reversed, holding that sublesses who do not physically operate their businesses on the property are not entitled to business damages under Florida law, and certified a question to the Florida Supreme Court regarding the proper interpretation of the statute.


Holding

A lessee who is a wholesale supplier and does not physically operate its business on the property is not entitled to business damages under Florida law for a partial taking by eminent domain, even if the lessee assists its sublessee through construction, branding, and other support services.


Headnotes

[1] A sublessor of property, who is a wholesale supplier to a retail sublessee operating on the property, is not entitled to business damages when the property is partially t…

[2] Denying business damages to a wholesale supplier who subleases property for retail operations, while allowing such damages to a direct operator of a retail service statio…

Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“On the authority of Standard Oil, we reverse the trial court's final judgment which awarded business damages to Texaco, the sublessor of an automobile service station located on property partially taken by eminent domain.”

Establishes the core holding that sublesses deriving wholesale income are not entitled to business damages under the Standard Oil precedent.

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

Texaco was the lessee of property on which an automobile service station operated. Texaco subleased the property to a retailer who operated the statio…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
LEHAN, Acting Chief Judge.

LEHAN, Acting Chief Judge.

The issue in, and the facts of, this case are substantially indistinguishable from those in Dept, of Transportation v. Standard Oil Co., 510 So. 2d 324 (Fla. 2d DCA 1987). On the authority of Standard Oil, we reverse the trial court’s final judgment which awarded business damages to Texaco, the sublessor of an automobile service station located on property partially taken by eminent domain. We reaffirm Standard Oil which we recognize had not been decided at the time of the final judgment in this case. If, as Texaco vigorously argues, Standard Oil represents an erroneous interpretation of legislative intent, that may be addressed by the legislature.

Texaco also argues that to deny it business damages constitutes a denial of equal protection of the law. Substantially the argument is that an oil company which operates a retail service station on property partially taken by eminent domain would recover its business damages, whereas, under Standard Oil and our holding here, an oil company like Texaco which subleases the property to a retailer who operates the station would not. But we agree with the Department of Transportation that those different classifications bear a reasonable relationship to a legitimate state interest and that to disallow business damages to entities like Texaco which derive income from wholesale sales to a business located on property partially taken by eminent domain but which do not physically operate their wholesale businesses on the property is not an unreasonable, unconstitutional classification. See In re Estate of Greenberg, 390 So. 2d 40 (Fla.1980); State v. Lee, 356 So. 2d 276 (Fla.1978). To adopt Texaco’s contention could place Texaco in a classification like that of multitudes of wholesale suppliers and others only indirectly affected by an eminent domain taking, thereby opening the door to innumerable claims. We do not believe that a different result is required by the facts that Texaco was the lessee of the property and that it assisted its sublessee by, for example, having constructed the building and other physical improvements used by the retail business, allowing the business to be operated under the lessee’s nationally recognized company name with lessee’s signs and to use the lessee’s credit card services, conducting site inspections at the business to ensure compliance with the lessee’s standards, and paying the real estate taxes on the property.

We need not express conflict with Broward County v. Mobil Oil Corp., 461 So. 2d 285 (Fla. 4th DCA 1985), which simply cited Dept. of Transportation v. Coulter, 43 Fla.Supp. 32 (Fla. 2d Cir.Ct.1973), and which Texaco describes as viewing the matter differently. Cf. Jollie v. State, 405 So. 2d 418, 419 (Fla.1981). In any event, Coulter is in conflict with Jamesson v. Downtown Development Authority of City of Fort Lauderdale, 322 So. 2d 510 (Fla.1975), in its conclusion that business damages are a part of constitutional “full compensation.” See Tampa-Hillsborough County Expressway Authority v. Campoamor Modern Dairy, Inc., 436 So. 2d 922, 924 (Fla. 2d DCA 1983) (Lehan, J., dissenting).

We certify to the Florida Supreme Court the following question as being of great public importance:

IS A LESSEE OF PROPERTY PARTIALLY TAKEN BY EMINENT DOMAIN ENTITLED TO BUSINESS DAMAGES PURSUANT TO SECTION 73.-071(3)(b), FLORIDA STATUTES (1985), WHEN THE LESSEE IS A WHOLESALE SUPPLIER OF PRODUCTS TO A SUBLESSEE WHO OPERATES A RETAIL BUSINESS ON THE PROPERTY AND THE LESSEE ASSISTS ITS SUB-LESSEE IN THAT RETAIL BUSINESS BY, FOR EXAMPLE, HAVING CONSTRUCTED THE BUILDING AND OTHER PHYSICAL IMPROVEMENTS USED BY THE RETAIL BUSINESS, ALLOWING THE BUSINESS TO BE OPERATED UNDER THE LESSEE’S NATIONALLY RECOGNIZED COMPANY NAME WITH LESSEE’S SIGNS AND TO USE THE LESSEE’S CREDIT CARD SERVICES, CONDUCTING SITE INSPECTIONS AT THE BUSINESS TO ENSURE COMPLIANCE WITH THE LESSEE’S STANDARDS, AND PAYING THE REAL ESTATE TAXES ON THE PROPERTY?

Reversed and remanded for proceedings consistent herewith.

FRANK and PARKER, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Texaco, Inc. v. Dep't OF Transp., 537 So. 2d 92 (Fla. 1989)
    …OVERTON, Justice. This is a petition to review Department of Transportation v. Schatt, 519 So. 2d 708 (Fla. 2d DCA 1988). The district court, relying on Department of Transportation v. Standard Oil Co., 510 So. 2d 324 (Fla. 2d DCA 1987), held that Texaco, as a long-term lessee which subleased an automobile service station to a dealer-operator and wa…

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw