NATIONAL AIRLINES, INCORPORATED, AND TROY HAIGLER AND XANDER LOOS, APPELLANTS,
v.
COUNTY OF DADE, FLORIDA, BY ITS BOARD OF COUNTY COMMISSIONERS ACTING AS DADE COUNTY PORT AUTHORITY, APPELLEES
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National Airlines appealed a circuit court decree validating a $21 million revenue bond issue by the Dade County Port Authority. National sought to invalidate the bonds by claiming the Authority violated an agreement regarding equal space allocation in a terminal building, but the Florida Supreme Court affirmed, holding that such collateral contractual disputes are not proper subjects for bond validation proceedings.
The court held that collateral contractual matters have no place in bond validation proceedings, and that National Airlines' claims regarding alleged violations of its space allocation agreement were not properly raised in the validation action. The court affirmed the lower court's decision to deny National's proffer of evidence regarding the alleged contract violation.
“All that it sought to do was to inject collateral matters that have no place in a bond validation proceeding.”
Establishes the core holding that contractual disputes cannot be raised in bond validation proceedings.
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Join FLexlaw to unlock all legal intelligenceThe Dade County Port Authority proposed to issue $21 million in revenue bonds for airport improvements including a terminal building. National Airline…
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SEBRING, Justice.
This is an appeal from a final decree of the Circuit Court for Dade County validating a proposed $21,000,000 issue of “revenue bonds” by the Dade County Port Authority.
The sole ground upon which appellant, National Airlines, sought to intervene and contest the validation proceedings below was its assertion that there existed a danger that revenues would not be sufficient to pay the obligations by virtue of the fact that the Authority had violated an agreement with National with respect to equal allocation of space in the terminal building constituting a portion of the county airport improvements to be built with the funds; that National had instituted a court action to compel reallocation, of which proceeding it requested the court to take judicial notice; that if such action were successful, then, predicts National, other lessee-airlines forced to accept less favorable allocation will, since they are not otherwise bound by contract, refuse to lease any space, and the Authority will be thereby deprived of considerable revenue.
The court below denied National’s proffer of its contract with the Authority which was alleged to have been violated, and held that the issues were not properly raised in validation proceedings. We find no error in this ruling.
In its answer the appellant did not contest the right, power, and authority of Dade County to issue and sell the revenue bonds, and did not contend that the bond validating statutes had not been tracked, or that the proceeds of the bonds were to be used for other than a lawful county purpose. All that it sought to do was to inject collateral matters that have no place in a bond validation proceeding. Atlantic Coast Line R. Co. v. City of Lakeland, 130 Fla. 72, 177 So. 206; Town of Riviera Beach v. State, Fla., 53 So. 2d 828; Chase v. City of Sanford, Fla., 54 So. 2d 370, 374.
The decree appealed from should be affirmed. State v. Dade County, Fla., 70 So. 2d 837.
It is so ordered.
ROBERTS, C. J., and MATHEWS and HOBSON, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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Boca Ciega Sanitary Dist. v. State, 161 So. 2d 529 (Fla. 1964)…ifically enumerated in its title. Such an index, however, is clearly beyond constitutional notice requirements. . As to scope of inquiry in bond validation proceedings, see 26 Fla.Juris. 477. Also see National Air Lines v. County of Dade, Fla.1954, 76 So. 2d 277; Atlantic Coast Line Ry. Co. v. Lakeland, 130 Fla. 72, 177 So. 206; Chase v. City of Sanford, Fla.1951, 54 So. 2d 370; State v. City of Miami, Fla.1958, 103 So. 2d 185. . Cf. State v. Halifax Hospital District, Fla.1963, 159 So. 2d 231, opinion fil…
Authorities Cited
- Town of Riviera Beach v. State, 53 So. 2d 828 (Fla. 1951)
- Atl. Coast Line R.R. Co. v. City of Lakeland, 130 Fla. 72 (Fla. 1937)
- Chase v. City of Sanford, 54 So.2d 370 (Fla. 1951)
- State v. Dade Cnty., 70 So. 2d 837 (Fla. 1954)