Fitness International, LLC v. 93 Flrpt, LLC
CourtDistrict Court of Appeal of Florida
Date FiledMay 10, 2023
Docket2D2022-1182
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
FITNESS INTERNATIONAL, LLC,
Appellant,
v.
93 FLRPT, LLC,
Appellee.
No. 2D22-1182
May 10, 2023
Appeal from the Circuit Court for Manatee County; Charles P. Sniffen,
Judge.
Jonathan C. Crane and Nicole V. Oden of Chane Socarras, PLLC, Palm
Beach Gardens; and Elliot B. Kula and William D. Mueller of Kula &
Associates, P.A., Miami, for Appellant.
Duane A. Daiker of Shumaker, Loop & Kendrick, LLP, Tampa, for
Appellee.
LABRIT, Judge.
In this case, we consider how government-ordered restrictions
related to the COVID-19 pandemic impact the parties' obligations under
a commercial real estate lease. Appellant Fitness International, LLC
(Tenant) operates health clubs, many under the name LA Fitness, and is
the tenant under a written lease with 93 FLRPT, LLC (Landlord). Tenant
sought a refund of the rent it paid during the approximately fifteen-week
period that government orders required Tenant to close or operate below
full capacity. Concluding that neither the lease nor common law support
such relief, the trial court denied Tenant's motion for summary judgment
and granted Landlord's motion for summary judgment. For the reasons
explained below, we affirm the final judgment for Landlord.
I.
The material facts are undisputed. Tenant and Landlord executed
the lease in December 2011 for an initial term of fifteen years, with three
five-year renewal options. On March 1, 2020, Florida's governor issued
an executive order declaring a public health emergency in the State of
Florida because of COVID-19. Between mid-March 2020 and mid-May
2020, various government orders required all fitness centers within the
State of Florida to close to prevent the perceived spread of COVID-19.
From mid-May 2020 through mid-June 2020, fitness centers were
authorized to reopen and operate at fifty percent capacity. Tenant closed
its health club on the leased premises on March 17, 2020, and fully
reopened the club on June 12, 2020 (the closure period).
During the closure period, Tenant paid rent as required by the
lease. In June 2021, Tenant asked Landlord to refund the rent Tenant
paid during the closure period. Landlord refused, and Tenant filed the
underlying lawsuit in August 2021. Tenant asserted claims for breach of
the lease and also asserted two alternative claims for declaratory relief.
In its primary declaratory relief claim, Tenant relied upon the lease's
force majeure clause to argue that it was excused from paying rent
during the closure period; it also sought an extension of the lease term
for a period of time equal to the closure period. In its alternative
declaratory relief claim, Tenant relied upon the common law doctrines of
frustration of purpose, impossibility of performance, and impracticability
2
of performance to request the same relief as it requested in the primary
declaratory relief claim. After Landlord answered and asserted
affirmative defenses to the complaint, the parties filed competing
summary judgment motions.
Tenant based its primary argument on the lease's force majeure
clause. Tenant maintained that the force majeure clause excused its
obligation to pay rent during the closure period because Landlord was
unable to "fulfill its warranty that Tenant shall have the right to operate"
in the leased premises. Tenant also maintained that the government
orders prohibiting and limiting Tenant's operation of a health club during
the closure period were "restrictive laws" that prevented Tenant from
performing under the lease. Tenant alternatively argued that its rent
obligation during the closure period "was excused by the equitable
doctrines of temporary frustration of purpose, impossibility, and/or
impracticability, as the pandemic and its related shutdown orders were
not foreseeable." According to Tenant, its inability to use the premises as
a health club during the closure period vitiated the "essential purpose of
the lease" and "made the payment of rent an excessive, unwarranted,
and impracticable financial burden."
For its part, Landlord argued that the government-mandated
closures did not preclude or restrict Tenant from performing its
contractual obligation to pay rent—and Tenant did pay rent, thereby
rendering inapplicable the force majeure provision, which expressly
excludes inability to pay and defaults curable by the payment of money.
Landlord also argued that the lease did not require Tenant to
continuously operate any business in the premises, nor did the lease
restrict Tenant's permissible use to operating a health club. Thus,
according to Landlord, neither the force majeure clause nor the equitable
3
doctrines of frustration, impossibility, or impracticability applied to
relieve Tenant of its rent obligation during the closure period.
Following a hearing, the trial court entered its order granting
Landlord's summary judgment motion and denying Tenant's summary
judgment motion. The court determined that the force majeure clause
applies where a party has been delayed, hindered, or prevented "from the
performance of any act required" by the lease. The court concluded that
while the use of the premises "was limited by the COVID restrictions," no
evidence "suggest[ed] that [Landlord] precluded use of the premises or
did anything to interfere with [Tenant's] use of the premises." The court
thus found that no evidence demonstrated that Landlord "failed to
perform any 'act' required by the lease"; the court in turn concluded that
the force majeure clause didn't apply to excuse Tenant's rent obligation
and that Landlord didn't breach the lease by refusing to abate the rent
during the closure period.
Addressing Tenant's impossibility and frustration arguments, the
trial court explained that "a party is discharged from performing a
contractual obligation which is impossible to perform and the party
neither assumed the risk of impossibility nor could have acted to prevent
the event rendering the performance impossible." Finding that
government-mandated closures were "specifically contemplated by the
'restrictive laws' portion of the Force Majeure clause," the court
concluded that Tenant "assumed the risk of a Force Majeure event that
can be, and was, cured by the payment of money." Final judgment was
entered for Landlord, and Tenant timely appealed.
II.
The parties' arguments on appeal mirror and expand upon the
arguments presented in the trial court. Tenant contends Landlord
4
warranted that Tenant would have the right to operate a health club
throughout the term of the lease. Tenant insists that by virtue of this
"warranty," Landlord "assumed the duty to ensure [Tenant's] right to
operate without restrictions." According to Tenant, Landlord breached
the lease by failing to refund rent paid during the closure period because
government orders restricted Tenant's health club operations during that
period. Tenant further argues the trial court reversibly erred by
concluding that the force majeure clause didn't apply to excuse Tenant's
rent obligation during the closure period; Tenant alternatively argues
that reversal is required under the equitable doctrines of frustration of
purpose, impossibility, and/or impracticability because "the pandemic
and its related shutdown orders were not foreseeable, and the purpose of
the lease was subverted."
Landlord argues that the lease cannot be read to include any
warranty or guarantee by Landlord that Tenant could use the premises
as a health club without risk of government restrictions on Tenant's
operations. Absent such a warranty, says Landlord, Tenant can identify
no unperformed "act" that supports application of the force majeure
clause. Landlord advances various arguments against the equitable
doctrines, primarily maintaining that none apply if the relevant risk was
foreseeable at inception of the lease. Landlord in turn argues that the
risk of government restrictions was foreseeable because the force
majeure clause specifically anticipated the risk of "restrictive laws."
III.
Contract interpretation is a question of law subject to de novo
review. Bethany Trace Owners' Ass'n v. Whispering Lakes I, LLC, 155 So.
3d 1188, 1191 (Fla. 2d DCA 2014). Likewise, the grant of summary
judgment is reviewed de novo. See Volusia County v. Aberdeen at
5
Ormond Beach, L.P., 760 So. 2d 126, 130 (Fla. 2000). Summary
judgment is properly granted "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(a) (2021).1
Tenant's arguments that its rent obligation was excused during the
closure period all hinge on the notion that Landlord breached the lease
because it warranted that Tenant would have the right to operate a health
club on the premises continuously throughout the term of the lease. For
the reasons explained below, we disagree with this premise and therefore
reject all of Tenant's arguments.
IV.
A. Warranty
In support of its "warranty" argument, Tenant principally relies
upon section 1.9 of the lease. Section 1.9 appears in Article I of the lease
(entitled "Basic Lease Provisions and Definitions") and is reproduced in
pertinent part below.
1.9 PRIMARY USES. The "Primary Uses" of the Building
shall be for the operation of a full service health club
and fitness facility which may include, without
limitation, weight and aerobic training, exercise
dancing, yoga, Pilates, Zumba, racquetball, personal
training, health and fitness related programs, free
weights, spinning/cycling, boxing, basketball,
swimming pool, swim lessons, racquetball lessons,
1 Florida Rule of Civil Procedure 1.510 was recently amended to
conform with the federal summary judgment standard. See In re
Amends. to Fla. R. Civ. P. 1.510, 317 So. 3d 72, 74 (Fla. 2021); In re
Amends. to Fla. R. Civ. P. 1.510, 309 So. 3d 192, 192 (Fla. 2020). The
amended rule applies to all cases pending at the time the rule became
effective. See In re Amends., 317 So. 3d at 77. Because the summary
judgment motions were decided after May 1, 2021, the effective date of
the amendment, the amended rule applies to this case.
6
sauna and whirlpool facilities. . . . Landlord hereby
represents, warrants and covenants to Tenant that
Tenant's operation of business from the Building in
accordance with this Lease for a health club and fitness
facility . . . does not and will not violate any agreements
respecting exclusive use rights or restrictions on use
within the Project or any portion thereof. . . . Tenant
shall have the right throughout the Term to operate the
Building, or any portion thereof, for uses permitted
under this Lease.
Both parties posit that the lease is unambiguous; we agree. "Where
a contract is clear and unambiguous, it must be enforced pursuant to its
plain language." Hahamovitch v. Hahamovitch, 174 So. 3d 983, 986 (Fla.
2015). "In such a situation, 'the language itself is the best evidence of
the parties' intent, and its plain meaning controls.' " Id. (quoting
Crawford v. Barker, 64 So. 3d 1246, 1255 (Fla. 2011)). Our goal in
contractual interpretation "is to arrive at a reasonable interpretation of
the entire agreement, and to construe contractual terms 'in such a
manner as to give them a meaning consistent with the apparent object of
the parties in entering into the contract.' " Beach Towing Servs., Inc. v.
Sunset Land Assocs., 278 So. 3d 857, 861 (Fla. 3d DCA 2019) (quoting
Blackhawk Heating & Plumbing Co. v. Data Lease Fin. Corp., 302 So. 2d
404, 407 (Fla. 1974)); see also Famiglio v. Famiglio, 279 So. 3d 736, 740
(Fla. 2d DCA 2019) ("Provisions in a contract should be 'construed in the
context of the entire agreement' and read 'in a way that gives effect to all
of the contract's provisions.' " (quoting Retreat at Port of Islands, LLC v.
Port of Islands Resort Hotel Condo. Ass'n, 181 So. 3d 531, 533 (Fla. 2d
DCA 2015))).
Nothing in the plain language of Section 1.9 constitutes a warranty
or guarantee by Landlord that Tenant would be free to operate a health
club in violation of a government mandate restricting such activity. As
7
Landlord correctly argues, the only thing Landlord warranted in Section
1.9 is that Tenant's operation of a health club "does not and will not
violate any agreements respecting exclusive use rights or restrictions on
use within the Project or any portion thereof." The plain and only
meaning of this language is that Landlord warranted that Tenant's use of
the premises as a health club would not violate exclusive use rights
Landlord had granted or could grant to other tenants. It cannot
reasonably be interpreted as a guarantee by Landlord that Tenant could
operate a health club continuously notwithstanding government-
mandated restrictions.
Tenant also relies on language in Section 1.9 granting Tenant "the
right throughout the Term to operate the Building, or any portion
thereof, for uses permitted under this Lease." Tenant insists this means
Landlord guaranteed it the right to operate a health club, free from
government restrictions, throughout the term of the lease. We read the
lease as a whole and give effect to all of its provisions in the context of
the entire agreement. See Famiglio, 279 So. 3d at 740; Antonin Scalia &
Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 167
(2012) ("A legal instrument typically contains many interrelated parts
that make up the whole. The entirety of the document thus provides the
context for each of its parts."); see also Lab. Corp. of Am. v. Davis, 339
So. 3d 318, 324 (Fla. 2022) ("Under the whole-text canon, proper
interpretation requires consideration of 'the entire text, in view of its
structure and of the physical and logical relation of its many parts.' "
(quoting Reading Law at 167)).
The provision upon which Tenant relies does not mention operating
a health club—it simply grants Tenant the right to operate the premises
"for uses permitted under this Lease." While Section 1.9 of the lease is
8
entitled "Primary Uses" and prescribes that the primary use of the
premises "shall be for the operation of a full service health club," Article
VIII of the lease is entitled "Uses" and Section 8.2 permits Tenant "to
change the use of the Premises" to multiple alternate uses so long as
such uses don't conflict with exclusive use rights of other tenants.
Section 8.1 provides that Tenant "shall not be required to open for
business from the Building" and further states that if Tenant does open
for business, it "shall have the right at any time and from time to time to
cease operating the business conducted upon the Building." These
provisions yield the inescapable conclusion that the parties agreed that
Tenant could engage in a variety of permitted uses, or no use at all, of
the premises. Tenant also covenanted in Section 8.3(e) that it would "not
use or allow the Building to be used for any illegal purposes." As Tenant
acknowledges, operating a health club in violation of the government
restrictions would be illegal. Lastly, Section 22.20 provides that
"Landlord shall not be deemed to be a partner of Tenant or a joint
venturer with Tenant." In other words, Landlord didn't agree to
participate in or profit from Tenant's operation of a health club (or any
other business) on the premises. Reading all of these provisions together
and in context and giving effect to each, the reasonable interpretation of
Section 1.9 is that Landlord "merely agreed not to restrict [Tenant] from
using the premises in any way permitted under the lease." SVAP III
Poway Crossings, LLC v. Fitness Int'l, LLC, 303 Cal. Rptr. 3d 863, 871
(Cal. Ct. App. 2023).2
2 The parties rely on numerous orders from trial and bankruptcy
courts throughout the country to support their arguments. Those orders
have no precedential value and do not bind this court, so we will not
belabor an analysis of how particular trial and bankruptcy court orders
do or do not inform this decision. Fitness International, 303 Cal. Rptr.
9
Apart from our analysis of the lease provisions, the record confirms
that Tenant didn't treat the government-mandated closures as a breach
of any "warranty" in the lease. The lease contains a specific and detailed
default provision requiring Tenant to notify Landlord of any claimed
breach; the default provision also specifies a thirty-day cure period. In
June 2021, a year after it resumed operations, Tenant issued a formal
demand to Landlord in which it sought a refund of the rent it paid during
the closure period. But that demand relied on the force majeure and
casualty/condemnation provisions of the lease; it did not mention
Section 1.9, and it said nothing about Landlord having breached a
"warranty" that guaranteed Tenant's unfettered use of the premises
during the closure period.3 Likewise, at the beginning of the closure
period, Tenant wrote Landlord to request a "rent holiday." But again,
Tenant never mentioned the purported "warranty" or Landlord's claimed
breach thereof.
We conclude that Landlord did not warrant or guarantee that
Tenant would have the right to use the premises continuously as a
863 (which features the same tenant and a substantially similar lease), is
the only appellate decision we have uncovered involving the precise
issues presented by this case. The decision features California law; it
also is in some ways procedurally and factually distinguishable, and like
the trial and bankruptcy court orders, it does not bind this court. It is,
however, persuasive analysis involving many of the same arguments
directed to the same lease text and fact pattern here presented.
3 The demand mentions in passing that Tenant did not have "quiet
enjoyment" of the premises during the closure period. Although Article II
and Article XXII of the lease contain "quiet enjoyment" provisions,
Landlord's obligation under those provisions is limited to protecting
Tenant's possession and use of the premises against those acting "by,
through or under Landlord." This is presumably why Tenant did not
argue below or in this court that Landlord breached the quiet enjoyment
provisions.
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health club despite government-mandated restrictions. Landlord's
obligation under the lease "was not to ensure [Tenant's] ability to operate
a health club and fitness facility for the entire duration of the lease term,
but rather to provide [Tenant] with possession of the premises in
exchange for its payment of rent." Fitness Int'l, 303 Cal. Rptr. 3d at 871.
The lease, read as a whole, reveals that the parties' intent was not for
Tenant to pay Landlord rent in exchange for Landlord's guarantee that
the premises could be used exclusively as a health club throughout the
lease term; instead, Landlord's obligation was to provide possession of
the premises and Tenant's obligation was to pay rent and use the
premises in the manners permitted by the lease. Landlord was not
obligated to ensure Tenant's particular use of the premises, and the
government-mandated restrictions did not prevent Tenant from paying
rent.
Because Landlord undisputedly has provided Tenant with
possession of the premises throughout the lease term and because there
is no evidence that Landlord—as opposed to the government—restricted
Tenant's use of the premises in any way, we conclude that Landlord has
performed—and has not breached—its obligations under the lease.
B. Force Majeure
Tenant maintains that its rent obligation should be excused under
the lease's force majeure provision because government-ordered
restrictions prevented Landlord from "honor[ing] its warranty that
[Tenant] shall have the right to operate without restriction its
health/fitness club throughout the" lease term. Tenant also argues that
the force majeure clause prevented it from performing its obligations
under the lease. Landlord argues that the trial court correctly found the
force majeure clause inapplicable because the government-ordered
11
restrictions did not prevent Tenant from performing its obligation to pay
rent.
A force majeure clause "excuses performance of contractual
obligations—either wholly or for the duration of the force majeure—upon
the occurrence of a covered event which is beyond the control of either
party to the contract." See generally Palm Springs Mile Assocs. v.
Kirkland's Stores, Inc., No. 20-21724, 2020 WL 5411353, at *2 (S.D. Fla.
Sept. 9, 2020). Because force majeure clauses are not "opt-out
provision[s] and [are] limited in scope," they "are narrowly construed, and
'will generally only excuse a party's nonperformance if the event that
caused the party's nonperformance is specifically identified.' " Id.
(quoting ARHC NVWELFL01, LLC v. Chatsworth at Wellington Green, LLC,
No. 18-80712, 2019 WL 4694146, at *3 (S.D. Fla. Feb. 5, 2019)). In
relevant part, the force majeure provision states:
If either party is delayed or hindered in or prevented from the
performance of any act required hereunder because of . . .
restrictive laws . . . performance of such act shall be excused
for the period of delay caused by the Force Majeure Event and
the period for the performance of such act shall be extended
for an equivalent period . . . . Delays or failures to perform
resulting from lack of funds or which can be cured by the
payment of money shall not be Force Majeure Events.
As discussed above, Landlord did not warrant that Tenant would
have the right to operate a health club notwithstanding government
restrictions. Thus, Landlord was not "delayed or hindered in or
prevented from the performance of any act required" of Landlord under
the lease, and Tenant's attempt to use the force majeure clause
offensively to support a claim for affirmative relief against Landlord fails.
The government-mandated restrictions unquestionably were
"restrictive laws." However, we reject Tenant's argument that the
12
restrictions hindered or prevented Tenant from performing its obligation
to pay rent. Tenant undisputedly paid rent during the closure period; so
it is clear that "restrictive laws" did not delay, hinder, or prevent Tenant
from performing its rent obligation. Tenant hasn't identified any other
obligation that it was unable to perform during the closure period.4
Accordingly, the force majeure clause does not apply and provides no
support for Tenant's claim that Landlord breached the lease by refusing
to refund the rent Tenant paid during the closure period.
In summary, Tenant's obligation to pay rent was not conditioned
upon its ability to continuously operate the premises as a health club
throughout the lease term; the fact that government-mandated
restrictions affected its ability to do so for seventy-five days out of a
fifteen-year (5,475-day) lease term does not create a "force majeure
event" under the plain language of this lease. Even accepting Tenant's
position that it paid rent under protest during the closure period, the
plain text of the force majeure clause, read in context with other
provisions of the lease, renders the force majeure clause inapplicable.
We employ a hypothetical to demonstrate this point: if the government-
4 By its plain language, the force majeure clause applies where
"restrictive laws" delay, hinder, or prevent the performance of any "act"
required under the lease. But the operation of a health club and fitness
facility is not an "act" required under the lease; it's a permissible "use" as
defined in section 1.9. The parties' use of these differing terms
undercuts Tenant's argument that the force majeure clause applies to
the facts of this case. See Kel Homes, LLC v. Burris, 933 So. 2d 699, 703
(Fla. 2d DCA 2006) ("[T]he use of different language in different
contractual provisions strongly implies that a different meaning was
intended."); Rosa v. Safepoint Ins. Co., 350 So. 3d 468, 471 (Fla. 5th DCA
2022) ("[W]here the document has used one term in one place, and a
materially different term in another, the presumption is that the different
term denotes a different idea." (alteration in original) (quoting Ahearn v.
Mayo Clinic, 180 So. 3d 165, 171 (Fla. 1st DCA 2015))).
13
mandated restrictions had lasted for several years instead of several
weeks, Tenant nonetheless would have been required to honor its rent
obligation—and could have done so by converting its use to one of the
many other retail or office uses permitted under the lease. Or it could
have ceased operating altogether ("gone dark") as authorized by Section
8.1 of the lease, thereby triggering Landlord's right to recapture the
premises (which, in turn, would relieve Tenant of its rent obligation). The
lease, read as a whole and in context, confirms the parties' intent that
Tenant—not Landlord—assumed the risk that Tenant's "primary use" of
the premises as a health club could become difficult or impossible to
achieve; the lease also confirms that Landlord assumed no duty or
obligation to ensure Tenant's ability to continuously operate a health
club throughout the term of the lease, nor did Landlord agree to forgive
Tenant's rent obligation if government-mandated restrictions prevented
Tenant from using the premises in a particular manner.
As has been oft-said, it is not the role of the courts "to rewrite a
contract to make it more reasonable for one of the parties . . . or, in the
guise of interpretation, relieve a contracting party from the consequences
of a bad bargain." Famiglio, 279 So. 3d at 740 (citations omitted).
Landlord and Tenant are sophisticated parties who agreed to the terms of
this commercial lease; we cannot rewrite the agreement to relieve Tenant
of the impact5 of government restrictions that were temporarily
implemented as a result of the COVID-19 pandemic.
5 Tenant is one of probably millions of American businesses whose
operations were limited or prohibited by virtue of pandemic-related
government restrictions. State and federal governments responded to the
financial impact of such restrictions by providing extensive aid packages
to businesses throughout the country. However, there is no evidence in
this record as to whether Tenant (or, for that matter, Landlord) took
advantage of such relief.
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C. Impossibility/Impracticability
Tenant relies on the doctrine of impossibility of performance to
argue that its rent obligation should be excused because government-
mandated restrictions made it impossible to operate a health club on the
premises. Again, Tenant's position chiefly is predicated on the argument
that Landlord breached a contractual "warranty" that Tenant could
operate a health club on the premises throughout the term of the lease.
But—as discussed above—Landlord made no such warranty. The
doctrine of impossibility of performance applies to discharge a party
"from performing a contractual obligation which is impossible to perform
and the party neither assumed the risk of impossibility nor could have
acted to prevent the event rendering the performance impossible."
Marathon Sunsets, Inc. v. Coldiron, 189 So. 3d 235, 236 (Fla. 3d DCA
2016). But "courts are reluctant to excuse performance that is not
impossible but merely inconvenient, profitless, and expensive." Valencia
Ctr., Inc. v. Publix Super Markets, Inc., 464 So. 2d 1267, 1269 (Fla. 3d
DCA 1985). Once again, it is plain on this record that the government-
mandated restrictions did not render Tenant's obligation to pay rent
impossible—to the contrary, Tenant paid the rent. Tenant's undisputed
performance of its obligation to pay rent during the seventy-five-day
closure period was—at worst—"not impossible but merely inconvenient,
profitless, and expensive." Id. Consequently, the doctrine of
impossibility of performance does not apply to excuse Tenant's rent
obligation during the closure period.
Tenant's impracticability argument is based on the same theory as
its impossibility argument. The doctrine of impracticability of
performance applies to excuse performance when "after a contract is
made, a party's performance is made impracticable without his fault by
15
the occurrence of an event the non-occurrence of which was a basic
assumption on which the contract was made." Fla. Laundry Servs., Inc.
v. Sage Condo. Ass'n, 193 So. 3d 68, 68 (Fla. 3d DCA 2016) (quoting
Restatement (Second) of Contracts § 261). Florida law has "embraced"
this doctrine as a defense to a breach of contract claim and "explicitly
recognizes that '[it] is not limited to strict impossibility, but includes
"impracticability" due to unreasonable expense.' " Id. Tenant's
impracticability argument fails for the same reasons its impossibility
argument fails. In short, because this record makes clear that Tenant's
performance of its obligation to pay rent during the closure period was
neither impossible nor impracticable, we conclude that the doctrines of
impossibility and impracticability of performance do not apply to excuse
Tenant's obligation to pay rent.
D. Frustration of Purpose
Tenant relies on the doctrine of frustration of purpose to contend
that its obligation to pay rent was excused because "the purpose of the
lease itself—the right to operate its health/fitness facility throughout the
lease term without restrictions" was frustrated. As Landlord correctly
argues, however, the doctrine generally applies to relieve one party of its
contractual obligations where the purpose of a contract has been
"frustrated because of the failure of consideration, or impossibility of
performance by the other party." See, e.g., Home Design Ctr.--Joint
Venture v. Cnty. Appliances of Naples, Inc., 563 So. 2d 767, 770 (Fla. 2d
DCA 1990) (emphasis added). Landlord did nothing to frustrate the
purpose of the lease; any frustration is attributable to the government-
mandated restrictions, over which Landlord had no control.
Landlord also argues that the doctrine does not apply to excuse a
party's performance where the difficulties constituting frustration were
16
foreseeable. As the trial court correctly found, the parties expressly
contemplated the possibility of "restrictive laws," as evidenced by their
inclusion of that text in the force majeure clause. In simple terms, the
parties agreed that if either party's performance was delayed, hindered,
or prevented by "restrictive laws," such performance would be excused
only if it could not be cured by the payment of money. Clearly, then, the
parties anticipated the possibility of "restrictive laws" impairing a party's
ability to perform its obligations under the lease. And our analysis
makes clear that the government-mandated restrictions did not impair
either party's ability to perform its obligations under the lease. As a
result, the doctrine of frustration of purpose is inapplicable.6
We are mindful of the hardships that Tenant and countless other
businesses faced at the outset of the COVID-19 pandemic. But, as a
matter of law, neither the lease nor the equitable doctrines upon which
Tenant relies support the relief that Tenant sought. Therefore, we find
no error in the trial court's decision to grant Landlord's summary
judgment motion and to deny Tenant's summary judgment motion, and
we affirm the final judgment in favor of Landlord.
Affirmed.
MORRIS, C.J., and SLEET, JJ., Concur.
6 Landlord also contends that the equitable doctrines apply only to
terminate or rescind a contract that has become permanently (as
opposed to temporarily) impossible to perform; according to Landlord, the
doctrines do not support relief of the type that Tenant sought for a
midcourse disruption of relatively short duration. We need not address
this argument because we conclude the doctrines are inapplicable for
other reasons.
17
Opinion subject to revision prior to official publication
18