Ccp Harbour Island, LLC v. Manor at Harbour Island, LLC
CourtDistrict Court of Appeal of Florida
Date FiledOctober 11, 2023
Docket2D2022-2922
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
CCP HARBOUR ISLAND, LLC; CONVERGENT MANAGEMENT, LLC;
SANTOSH GOVINDARAJU; NIKHIL SACHDEV; and PAUL BERAQUIT,
Appellants,
v.
MANOR AT HARBOUR ISLAND, LLC,
Appellee.
No. 2D22-2922
October 11, 2023
Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for
Hillsborough County; Darren D. Farfante, Judge.
Andrew J. Ghekas and John A. Anthony of Anthony & Partners, LLC,
Tampa; James C. Valenti of James C. Valenti, P.A., Lakeland, for
Appellants.
Brigid F. Cech Samole and Bethany J.M. Pandher of Greenberg Traurig,
P.A., Miami; David B. Weinstein and Ryan Hopper of Greenberg Traurig,
P.A., Tampa, for Appellee.
ATKINSON, Judge.
CCP Harbour Island, LLC (CCP); Convergent Management, LLC
(Convergent); Santosh Govindaraju; Nikhil Sachdev; and Paul Beraquit
(collectively Appellants) appeal the trial court's order granting Manor at
Harbour Island, LLC's (Manor), motion to amend complaint to add claims
for punitive damages. On appeal, the Appellants argue that the trial
court erred by granting Manor leave to amend its complaint to seek
punitive damages as to its abuse of process and malicious prosecution
claims against each of the Appellants. The Appellants also argue that
the trial court erred by allowing Manor to seek an award of punitive
damages as to its abuse of process claims against Sachdev and Beraquit
in their personal capacities based on their approval of Govindaraju's
conduct during settlement negotiations. For the reasons explained in
this opinion, we agree that the trial court erred by granting Manor's
motion to amend to add claims for punitive damages as to Manor's claim
for abuse of process and as to Sachdev and Beraquit based on
Govindaraju's conduct during settlement negotiations. However, we
conclude that the trial court properly granted Manor's motion to amend
to add claims for punitive damages as to the malicious prosecution
claims against CCP, Convergent, and Govindaraju. Therefore, we affirm
in part and reverse in part the trial court's order and remand for further
proceedings consistent with this opinion.
Background
CCP is a limited liability company which invests in real estate in
Tampa. CCP's managing member is Convergent, a limited liability
company made up of Govindaraju, Sachdev, and Beraquit. Govindaraju
is the CEO of CCP, and he handles litigation strategy and "creative,
complex, highly intellectual-type issues" for CCP. Sachdev is the
president of CCP and handles equity investors, debt investors, and
capital resources for CCP. Beraquit handles the physical management
aspects of the properties in which CCP invests.
2
In 2014, CCP acquired a property on Harbour Island called
Knight's Point or The Pointe (The Pointe). It leases space in The Pointe to
Jackson's Bar and Bistro (Jackson's) and others. In 2002, CCP's
predecessor in interest had entered into a parking easement agreement
(Parking Easement Agreement) with the owner of the Two Harbour Place
parking garage (the Parking Garage). Pursuant to the Parking Easement
Agreement, CCP's predecessor received a nonexclusive easement for
ingress, egress, and use of parking spaces in the Parking Garage for the
tenants of The Pointe. The Parking Easement Agreement originally
provided CCP's predecessor with 201 spaces in the Parking Garage.
However, the Parking Easement Agreement provided that if the lease of
one of the tenants—Z-Tel—terminated or expired before the expiration or
termination of Jackson's Lease, the number of parking spaces CCP's
predecessor may use under the agreement would be reduced to 103
parking spaces. Z-Tel's Lease expired or was terminated prior to
Jackson's; therefore, pursuant to the Parking Easement Agreement,
CCP's predecessor was entitled to only 103 parking spaces in the Parking
Garage. The Parking Easement Agreement also provided that "[i]n the
event both the Jackson's Lease and the Z-Tel Lease have expired or
terminated, this Agreement shall terminate, and [the owner of the
Parking Garage] and [CCP's predecessor] shall cooperate to execute and
record a Termination of Easement Agreement in the public records of
Hillsborough County, Florida, to evidence such termination" (the
Jackson's Lease Contingency). Consequently, if the Jackson's Lease
expired, CCP would lose all 103 spaces in the Parking Garage.
The owner of the Parking Garage sold that property to CPPM THP
LLC and AMP/CPL-THP Property LLC (Crocker), and Crocker obtained
the prior owner's rights under the Parking Easement Agreement. When
3
CCP purchased The Pointe property, it obtained its predecessor's rights
under the Parking Easement Agreement.
In 2016, Manor purchased a parcel adjacent to the Parking Garage
from Crocker. Manor began constructing a 340-unit luxury apartment
building known as The Manor at Harbour Island, Icon Harbour Island, or
Icon (the Manor building). Manor and Crocker entered into a shared
facilities agreement in which Crocker agreed to provide Manor with 560
parking spaces in the Parking Garage (the Shared Facilities Agreement).
The Crocker Action
In 2015, CCP had filed a lawsuit against Crocker (the Crocker
Action), seeking declaratory and injunctive relief as to CCP's entitlement
to and the pricing of the parking spaces pursuant to the Parking
Easement Agreement. In 2016, CCP amended its complaint to add
Manor as a defendant and to add two additional causes of action: a claim
for trespass on the case and a claim for injunctive relief. In its claim for
trespass on the case, CCP alleged that Manor's site plan and Shared
Facilities Agreement with Crocker would result in over-capacity
utilization of the Parking Garage and thus inevitably encroach upon the
parking spaces available to CCP pursuant to the Parking Easement
Agreement. CCP requested that the trial court enter declaratory
judgment interpreting the Parking Easement Agreement and the Shared
Facilities Agreement in its favor—on a theory that the 103 spaces were
not only for Jackson's but for any of CCP's tenants—an injunction
against restriping spaces in the Parking Garage, and an injunction
requiring Crocker to designate 103 reserved and labelled parking spaces
for CCP's exclusive use. Jackson's had intervened in the Crocker Action,
arguing that it was the intended beneficiary of the 103 parking spaces
pursuant to the Parking Easement Agreement. CCP disputed that
4
Jackson's was a third-party beneficiary to the Parking Easement
Agreement and sought an injunction against Jackson's and Crocker
infringing upon, limiting, and restricting CCP's rights under the Parking
Easement Agreement.
CCP engaged in settlement negotiations with Jackson's on the one
hand and with Crocker and Manor on the other hand. Jackson's and
CCP settled their disagreements in the Crocker Action. Although the
appendices on appeal indicate that Manor's counsel asserted at the
hearing on Manor's motion to amend the complaint that Manor was the
prevailing party in the Crocker Action, there is no evidence in the
appendices other than counsel's statement indicating how the Crocker
Action was resolved. Cf. Griffin v. State, 344 So. 3d 623, 625 (Fla. 2d
DCA 2022) ("Unsworn statements made by counsel cannot be considered
as evidence.").
The City Action
In 2016, residents of CCP's property, The Pointe, filed a lawsuit
against the City of Tampa (the City Action), seeking a declaratory
judgment finding that the city had improperly issued the permit for
construction of the adjacent Manor building. In 2018, CCP intervened in
the City Action and added Manor and Crocker as defendants. In the City
Action, CCP alleged that Manor and Crocker had fraudulently
misrepresented material information related to Manor's parking needs
and calculations to the city when applying for a building permit. CCP
also alleged and reiterated throughout the course of the litigation that
the city failed to provide CCP with meaningful notice and opportunity to
be heard during the building permit proceedings. CCP sought damages,
5
declaratory relief, and an injunction halting construction of the Manor
building and demolishing the existing construction.1
On April 23, 2018, the trial court entered final judgment in favor of
the city, Crocker, and Manor, finding, among other things, that the city
did not deprive CCP of any protected rights. CCP timely appealed the
judgment. This court affirmed. See CCP Harbour Island, LLC v. City of
Tampa, 275 So. 3d 581 (Fla. 2d DCA 2019) (table decision). Therefore,
CCP did not prevail on any of its claims in the City Action.
Settlement Negotiations
Manor submitted a voluminous proffer in support of its motion to
amend its complaint to add claims for punitive damages. An exhaustive
recitation of the evidence on which Manor relied is not possible in this
recorded opinion. However, included in what follows are excerpts from
that proffer and from the record that this court finds to be representative
of evidence invoked by Manor as support for its entitlement to seek
punitive damages.
Throughout the Crocker Action and the City Action, Govindaraju
(CCP's CEO) and CCP's attorneys engaged in settlement negotiations with
Crocker, Manor, and Jackson's on behalf of CCP. Govindaraju described
his settlement negotiation strategy in the Crocker Action as a "prisoner's
1 In the trial court and on appeal, the Appellants' counsel asserted
that at the time CCP had intervened in the City Action, the Manor
building had not yet been fully constructed—the building was only the
"structural components"—and no residents had been living in the Manor
building. In the trial court, Manor's counsel asserted that the Manor
building had been fully constructed by 2017—one year prior to CCP's
intervention in the City Action. Despite these conflicting representations
by counsel in the trial court and on appeal, the parties' appendices do
not include any evidence to support either assertion. Cf. Griffin, 344 So.
3d at 625 ("Unsworn statements made by counsel cannot be considered
as evidence.").
6
dilemma" wherein CCP would play each of the defendants—Crocker,
Manor, and Jackson's—off each other until one party took CCP's
settlement offer. In his settlement negotiations with Crocker and Manor,
Govindaraju proposed that CCP would voluntarily dismiss its claims
against them if Crocker agreed to provide CCP with 103 reserved parking
spaces and remove the Jackson's Lease Contingency from the Parking
Easement Agreement. Govindaraju directed this settlement proposal
both to Manor and Crocker in the hopes that Manor would protect its
own interests by encouraging Crocker to agree to the settlement.
Govindaraju testified in his deposition that if Manor and Crocker had
accepted this proposal, CCP would "have [had] ammo to viciously remove
Jackson's." On the other hand, Govindaraju proposed that CCP would
voluntarily dismiss its claims against Jackson's if Jackson's agreed to
support CCP's position in the Crocker Action. Govindaraju testified that
if Jackson's came back to CCP's side, CCP would continue to litigate
against Manor and Crocker. Although CCP sought removal of the
Jackson's Lease Contingency in settlement negotiations, CCP did not
request its removal in either the Crocker Action or the City Action.
Throughout the settlement negotiations, Govindaraju and CCP's
attorneys sent Manor and Crocker several communications, which Manor
characterizes as "extortion communications." On April 18, 2016,
Govindaraju sent Crocker a letter which in relevant part stated, "It is
indeed unfortunate that your actions have placed [Manor's]
development at risk." (Emphasis in original.) The letter also stated,
"You are in a precarious position where time and the information
revealed over time have worked and will continue to work against you.
You have already lost; you should cut your losses, resign from your
position, and exit gracefully . . ." and "[a]sk every litigator in this market,
7
they will confirm that this firm does not compromise on ethical positions
and will go all the way to the mat with Winston[-]Churchill[-]like fervor,
intent on 'Victory at all costs . . . however long and hard the road may
be.' " Govindaraju stated that the Crocker Action "initially was about
operating our 103 spaces in a reasonable manner and process. Yet
[Crocker's] willful misconduct, lack of foresight, and poor decision-
making skills have led [Crocker] to really screw this all up for [Crocker],
[its] investors, and [Manor]." Govindaraju represented that "this firm is
grateful that [Crocker] ha[d] taken the shortsighted positions [it] ha[d] to
date." (Emphasis in original.) Govindaraju wrote that Crocker's "plans
in [its] declaration are flawed and . . . [would result in Crocker] spending
over $1 million defending [it]self and indemnifying [Manor]."
On April 18, 2016, Govindaraju emailed representatives from
Crocker and Manor, in relevant part stating that, "[a]t present, the acts
by the folks at Crocker do not motivate [CCP] to do anything but to go for
the jugular, which we are very adept at doing." In his deposition
testimony, Govindaraju testified that when saying "go for the jugular," he
meant that he would file a lawsuit, "go[ing] for pure victory and scorched
earth" against Crocker since Crocker refused to cooperate. In a separate
email to Manor sent on the same day, Govindaraju informed Manor that
"as a result of [Crocker's] bad faith acts, [CCP was] in a position to attack
[Crocker's] entire plan," and expressed hope that Manor would "be the
force that gets [Crocker and CCP] around a round table to resolve."
On June 6, 2016, attorneys on behalf of CCP sent Manor a
confidential settlement proposal, in which CCP proposed that it would
voluntarily dismiss the Crocker Action in exchange for 103 identifiable
and exclusive parking spaces and removal of the Jackson's Lease
Contingency. In other words, CCP wanted 103 reserved parking spaces
8
regardless of whether Jackson's remained a tenant. In the settlement
letter, CCP warned that if Crocker and Manor were "unable to execute
this Proposal by this deadline, then [CCP] is intent on advancing the
litigation to the more advanced, and higher profile stage, which is certain
to create significant risk and expense to the defendant parties." CCP's
attorneys also stated, "[W]e hope that a resolution can be reached, but if
not, our client has stated that they have 'prepared for war, and plan[] to
conquer.' "
On July 11, 2016, in response to an email sent by a city attorney
indicating the city's position regarding the approval of Manor's building
permit and the associated parking plan, Govindaraju replied to the
mayor of Tampa that the city attorney was "being an ass," requested that
the city "Do the Right Thing," and told the city that he "d[id]n't want this
to be a bad fight that embarrasses the city and its administration, but
[he was] very close to exposing this for what it is."
On August 10, 2016, Govindaraju sent an email to a representative
of Manor, in relevant part stating the following:
Crocker has really led you down the wrong path[,] and I don't
want to harm [Manor]. We only seek to protect our rights
which Crocker has attempted to steal to conceal their errors.
Not sure how familiar you are with this. However[,] I consider
the folks at [Manor] our friends[,] and I prefer an outcome
that benefits us mutually.
On August 17, 2016, Govindaraju sent an email to a representative
of Manor, indicating that CCP believed that there were "mathematical
errors in the parking analysis" Crocker and Manor provided to the city to
support its request for a building permit. Govindaraju suggested that
Manor work with CCP to find a solution.
On September 29, 2016, Govindaraju emailed a representative of
Manor, stating that CCP's "position has been that [Manor] and Crocker
9
submitted falsified studies to the city of Tampa in order to obtain the
[building] permits." Govindaraju told Manor "[i]t is important that you
own your mistakes and work towards a resolution that satisfies us . . . .
If you can own the mistake, a resolution can be had."
On November 9, 2016, after unsuccessful settlement negotiations
in October 2016, Govindaraju emailed a representative from Manor,
stating that
[y]ou are all aware of the short comings and short circuitry that
was taken to approve your project. You are now testing a resilient
opponent who also has the pedigree of a winner and who only plays
to win, and only knows victory. My spiritual side always seeks to
find solutions first, but when faced with a stonewall, then the same
spiritual energy is used to destroy ignorance.
Govindaraju attached a copy of CCP's intervenor complaint in the City
Action and informed Manor that "[i]t summarizes the deception pretty
well. You may want to send it to the appropriate parties (i[.]e[.]
mortgagee and investors) and be cautious how you spend money on the
project. You may be obliged at some point to decide whether you reduce
the scope of your project or tear it down."
On January 4, 2017, Crocker emailed CCP, indicating that Crocker
and CCP's settlement negotiations had progressed positively. In relevant
part, Crocker stated that it was "willing to provide CCP with the 103
spaces for it to use or permit others to use, as it chooses, for the
remaining term of the easement, with the ability to park in any of the
remaining unreserved spaces in the garage." In response, Govindaraju
stated that Crocker's proposal provided for "the only things [CCP]
expected when this all started in early 2015." After explaining that he
believed that the litigation uncovered Manor's "infringement" of CCP's
rights in the parking garage and that Manor had "significant exposure" in
the City Action as a result, Govindaraju made a settlement counteroffer,
10
requesting that the following items be added to Crocker's settlement
offer: (1) "The easement being made perpetual without [the Jackson's
Lease Contingency] . . ."; (2) "Make the 103 spaces free of charge to CCP
. . . and perpetual." In exchange, Govindaraju offered to "work with
[Manor] and the City of Tampa to get the [City Action] dismissed," "agree
to the strictest confidentiality of the settlement," and "agree[] not to
interfere at all whatsoever with any of [Manor's] efforts . . . ."
On March 22, 2017, Crocker responded to Govindaraju's
settlement counteroffer. Crocker agreed to provide 103 reserved parking
spaces to CCP. However, Crocker stated that it was "not in a position to
provide [CCP] with perpetual, free spaces." Govindaraju replied that CCP
only requested the following three changes to Crocker's settlement
proposal: (1) removal of Jackson's Lease as a contingency to the
easement, (2) seven years of abatement on the parking payments, and (3)
addition of Manor as a party to the easement and release. On March 24,
2017, Crocker responded by offering the following revised terms: (1)
"Reserved Spaces – [Crocker] will provide you with 103 reserved parking
spaces." (2) "Term – the length of the Jackson's Lease as may be
extended by you and Jackson[']s." Govindaraju replied, again seeking
removal of the Jackson's Lease Contingency.
On April 18, 2017, Govindaraju again emailed Crocker indicating
that CCP would not accept a settlement that did not include a provision
"that [the] Jackson's [Lease] [C]ontingency be removed in its entirety."
On April 25, 2017, Govindaraju emailed Crocker with "an alternative
solution." Govindaraju proposed "terminat[ing] the easement in
exchange for the purchase of 103 reserved spaces at the [Parking G]arage
similar to . . . Manor's purchase of reserved spaces," effectively removing
the Jackson's Lease Contingency.
11
On June 19, 2017, a representative from Crocker emailed
Govindaraju indicating that Crocker had offered several major
concessions which were rejected by CCP. On June 20, 2017,
Govindaraju replied in a lengthy email in which he stated
I'm not a bully, but I am the guy who is the lifelong nerd who
has always given the bully a bloody nose (literally and
proverbially) . . . . To litigate these issues is a high risk for
Crocker. You have conceded on the easy items which were
highly contested at the beginning and which led to the
perception that Crocker is an actor in bad faith. . . There is a
simple solution here. We both have foresight, and know that
there is nothing lost to your joint venture conceding on the
above issues [removing the Jackson's Lease Contingency and
making the arrangement perpetual]. There is zero lost, but
here is unnecessary significant risk and expense with
litigation.
Govindaraju explained that it was CCP's position that "Manor and
Crocker made a statement under oath to the city that Crocker had 560
spaces available to give away" but the Parking Garage "DOES NOT have
enough spaces." Considering the alleged fraud in the permitting process,
Govindaraju explained that CCP has sought demolition of the Manor
building pursuant to case law in which courts "require[d] destruction" of
a building "if the application was false." Govindaraju promised that the
Crocker Action and the City Action "c[ould] be simply closed and all of
this swept under the rug by complying with [CCP's] simple requests."
Govindaraju warned that "[t]here is gravity for [Crocker] and for Manor
because the consequences at trial have 8[-]figure risk to each of [the]
firms."
Govindaraju continued to engage in settlement negotiations with
Manor. On September 1, 2017, Govindaraju emailed a representative
from Manor, seeking to persuade Manor to join forces with CCP. In
relevant part, Govindaraju told Manor that CCP did not "see [Manor] as
12
[its] enemy;" rather, CCP considered both its and Manor's enemy to be
Crocker. Govindaraju continued, saying "[i]f you can have someone
really smart look at the chessboard, you will see that the only end game
is that Crocker gets wrecked . . . [t]here is also a probability that [Manor]
gets wrecked because the false statements are what led to your permit."
Govindaraju attempted to persuade Manor that Crocker was responsible
for the risk that Manor faced in the City Action and suggested that
Manor "attack [Crocker] rapidly" so that Crocker "collapse[s]."
Govindaraju attached a copy of the email he sent to Crocker on June 20,
2017, to persuade Manor to join CCP in attacking Crocker.
Govindaraju continued to send Crocker emails in which he
questioned the wisdom of Crocker's attorneys and emphasized the
significant risk Crocker and Manor faced in the litigation if they did not
cooperate with CCP's settlement efforts. In one email from August 18,
2018, Govindaraju explained to Crocker that he continued to participate
in settlement negotiations to "nobly share with [Crocker] an easy way out
[of the litigation] to save [its] dignity." Govindaraju also informed Crocker
that CCP had reconciled with Jackson's and, thus, Crocker should settle
to keep the "trespass issue" "buried under the rug for many reasons
which I will not put into writing." Govindaraju then proposed that in
addition to the previously discussed settlement terms, "the free parking
period shall be perpetual." Govindaraju suggested that accepting his
settlement offer presented a "tremendous value" to Crocker and Manor,
allowing them to "preserve undeserved dignity" and "wipe [them]selves
clean from this embarrassing situation."
The Manor Action
On October 25, 2018, Manor sued CCP for abuse of process (the
Manor Action), alleging that CCP willfully and intentionally used the
13
process of the circuit court in the Crocker Action and the City Action for
a purpose for which process was not designed—"to coerce Manor into
pressuring Crocker to provide access to parking spaces in the [Parking
Garage] for a term that is not coextensive with the Jackson's [L]ease," a
right of access which CCP has not claimed in either the Crocker Action or
the City Action. Manor later filed an amended complaint, raising claims
of abuse of process and malicious prosecution against CCP and the other
Appellants.
On April 16, 2021, Manor filed a motion for leave to amend its
complaint again to assert claims for punitive damages against each of the
Appellants. In the motion, Manor argued that each of the Appellants
"personally engaged in intentional or grossly negligent misconduct
warranting imposition of punitive damages" pursuant to section 768.72,
Florida Statutes (2020). Manor indicated that it would file and serve "a
separate proffer of evidence supporting a 'reasonable showing' that a
'reasonable basis exists' for recovery of punitive damages." On May 24,
2022, Manor served and filed its proffer, which consisted of 189 exhibits.
Manor also filed a PowerPoint presentation containing highlights and
excerpts from its proffer that Manor used to support its claims for
punitive damages.
On May 25, 2022, the trial court held a hearing on Manor's motion
to amend. At the conclusion of the hearing, the trial court directed the
parties to file posthearing submissions in support of their respective
positions on Manor's motion to amend and proposed orders disposing of
the motion. After considering the evidence presented at the hearing and
the parties' posthearing submissions, the trial court granted Manor's
motion to amend the complaint to assert claims for punitive damages
against all the Appellants. The Appellants timely appealed.
14
Analysis
Appellate courts review a trial court's decision to grant a motion to
amend a complaint to add claims for punitive damages de novo.
Progressive Select Ins. Co. v. Ober, 353 So. 3d 1190, 1192 (Fla. 4th DCA
2023) (citing Bistline v. Rogers, 215 So. 3d 607, 610 (Fla. 4th DCA
2017)). "In evaluating the sufficiency of the evidence proffered in support
of a punitive damages claim, the evidence is viewed in a light favorable to
the moving party." Case v. Newman, 154 So. 3d 1151, 1157 (Fla. 1st
DCA 2014) (quoting Wayne Frier Home Ctr. of Pensacola, Inc. v. Cadlerock
Joint Venture, L.P., 16 So. 3d 1006, 1009 (Fla. 1st DCA 2009)).
In relevant part, section 768.72(1) provides "[i]n any civil action, no
claim for punitive damages shall be permitted unless there is a
reasonable showing by evidence in the record or proffered by the
claimant which would provide a reasonable basis for recovery of such
damages." If the trial court determines that the plaintiff has
demonstrated a reasonable showing of entitlement to punitive damages,
"[a] defendant may be held liable for punitive damages only if the trier of
fact, based on clear and convincing evidence, finds that the defendant
was personally guilty of intentional misconduct or gross negligence." See
§ 768.72(2). Pursuant to the punitive damages statute, " 'Intentional
misconduct' means that the defendant had actual knowledge of the
wrongfulness of the conduct and the high probability that injury or
damage to the claimant would result and, despite that knowledge,
intentionally pursued that course of conduct, resulting in injury or
damage." § 768.72(2)(a). " 'Gross negligence' means that the defendant's
conduct was so reckless or wanting in care that it constituted a
conscious disregard or indifference to the life, safety, or rights of persons
exposed to such conduct." § 768.72(2)(b).
15
Because Manor seeks to recover punitive damages for intentional
torts, it must show intentional misconduct; gross negligence would not
suffice. Cf. Bistline, 215 So. 3d at 609 ("Because the claims at issue do
not sound in negligence, the asserted basis for punitive damages under
the statute was 'intentional misconduct.' "); cf. also E.R. Truck & Equip.
Corp. v. Gomont, 300 So. 3d 1230, 1231 (Fla. 3d DCA 2020) (Scales, J.,
concurring) ("Because Gomont's retaliatory discharge claim asserts an
intentional tort, the basis for seeking punitive damages under the statute
is 'intentional misconduct.' " (citation omitted)). This makes sense: one
cannot negligently—or even grossly negligently—intend to do something.
Cf. Booth v. Mary Carter Paint Co., 182 So. 2d 292, 299 (Fla. 2d DCA
1966)) ("[N]egligence and intention have no necessary connection.
Negligence is not dependent upon bad intention, nor is it necessarily
negat[ed] by good intention. When the legal rights of others are involved,
the question of negligence vel non must stand on the facts themselves,
uninfluenced by intention."). Thus, the following discussion addresses
Manor's claims for punitive damages with a focus on the intentional
misconduct requirement to the exclusion of gross negligence.
I. Claims for Punitive Damages for Abuse of Process
The trial court found that "Manor's proffer provide[d] a reasonable
basis from which a jury could conclude Govindaraju attempted to use
litigation risk in an attempt to extort millions of dollars of parking
rights." On appeal, the Appellants argue that the trial court erred by
permitting Manor to amend its complaint with respect to its abuse of
process claim to add a claim for punitive damages against CCP,
Convergent, and Govindaraju.
While this court cannot entertain the Appellant's invitation to
review the sufficiency of Manor's abuse of process claim because we can
16
only review specified nonfinal orders as enumerated in Florida Rule of
Appellate Procedure 9.130, cf. Suggs v. Sw. Fla. Water Mgmt. Dist., 953
So. 2d 699, 700 (Fla. 5th DCA 2007), consideration of the elements of the
abuse of process cause of action is relevant to reviewing the trial court's
order. The elements of abuse of process are "(1) an illegal, improper, or
perverted use of process by the defendant; (2) an ulterior motive or
purpose in exercising the illegal, improper, or perverted process; and (3)
damage to the plaintiff as a result of the defendant's action." Valdes v.
GAB Robins N. Am., Inc., 924 So. 2d 862, 867 n.2 (Fla. 3d DCA 2006)
(citing Hardick v. Homol, 795 So. 2d 1107, 1111 n.2 (Fla. 5th DCA
2001)). "[T]he usual case of abuse of process involves some form of
extortion." S & I Invs. v. Payless Flea Mkt., 36 So. 3d 909, 917 (Fla. 4th
DCA 2010) (alteration in original) (quoting Bothmann v. Harrington, 458
So. 2d 1163, 1169 (Fla. 3rd DCA 1984)). However, "[t]here is no abuse of
process . . . when the process is used to accomplish the result for which
it was created, regardless of an incidental or concurrent motive of spite
or ulterior purpose." Id. (emphasis omitted) (quoting Bothmann, 458 So.
2d at 1169).
Abuse of process is an intentional tort. Cf. Indem. Ins. Co. of N. Am.
v. Am. Aviation, Inc., 891 So. 2d 532, 543 n.3 (Fla. 2004) (identifying
abuse of process as an "[i]ntentional tort"). Evidence in support of the
commission of an intentional tort alone is not sufficient to establish a
reasonable basis for a claim of punitive damages. See Bistline, 215 So.
3d at 611 ("Merely pleading a facially sufficient claim for an intentional
business tort is not sufficient to claim punitive damages. '[P]unitive
damages are reserved for particular types of behavior which go beyond
mere intentional acts.' " (alteration in original) (quoting Weinstein Design
Grp., Inc. v. Fielder, 884 So. 2d 990, 1001 (Fla. 4th DCA 2004))); Air
17
Ambulance Pros., Inc. v. Thin Air, 809 So. 2d 28, 30 (Fla. 4th DCA 2002)
("Record evidence may support an intentional tort, but not necessarily an
award of punitive damages."). Instead, the plaintiff must make "a
reasonable showing" that there is "a reasonable basis" for the finder of
fact to believe that "the defendant had actual knowledge of the
wrongfulness of the conduct and the high probability that injury or
damage to the claimant would result and, despite that knowledge,
intentionally pursued that course of conduct, resulting in injury or
damage." See § 768.72(1)–(2)(a).
At the hearing on its motion to amend and on appeal, Manor
argued that it made a reasonable showing that CCP, Convergent,
Govindaraju, Sachdev, and Beraquit, through Govindaraju, used the
process of the trial court in the Crocker Action and the City Action to
coerce Manor to exert pressure on Crocker to agree to CCP's settlement
offer which would require Crocker to remove the Jackson's Lease
Contingency from the Parking Easement Agreement—collateral relief not
sought in either the Crocker Action or the City Action. While this would
tend to support the conclusion that the defendants advanced their cause
of action for "an ulterior motive or purpose," see Valdes, 924 So. 2d at
867 n.2, the other elements of the tort of abuse of process are not as
readily supportable, especially to the extent required to support
entitlement to punitive damages based upon such tort. In other words,
the defendants would also be required to have used the process of filing
the lawsuit in a manner that was "illegal, improper, or perverted," see id.,
and to have done so with "actual knowledge of the wrongfulness of the[ir]
conduct and the high probability that injury or damage to [Manor] would
result," § 768.72(2)(a). While Govindaraju's and CCP's attorneys'
strategic tactics and their communications with Crocker and Manor
18
during settlement negotiations could certainly be considered aggressive,
Manor has not shown them to have been "illegal." As such, to prove
punitive damages are warranted for its abuse of process cause of action,
Manor would be required to establish that such tactics constitute
"improper" or "perverted" use of the litigation process by refusing to settle
the Crocker Action and the City Action unless Manor successfully
convinced Crocker to remove the Jackson's Lease Contingency from the
Parking Easement Agreement. Whether blustering about one's prowess
while denigrating one's opponent, expressing unqualified self-assurance
about the merits of one's legal position, and asserting hyperbolic
confidence in one's chances of litigation success and an unwillingness to
capitulate during settlement negotiations constitutes an "improper" or
"perverted" use of the civil litigation process to achieve ulterior ends
might depend on the particular perspective and experience of the finder
of fact. However, this court need not opine on that question if it finds
that the evidence on which Manor relied does not provide a reasonable
showing that the defendants "had actual knowledge of the wrongfulness"
of the use of such tactics in pursuit of the ulterior motive of eliminating
the Jackson's Lease Contingency. See § 768.72(2)(a). In other words,
Manor would need to prove that the defendants knew it was wrong to
seek an objective not included in the relief sought in their lawsuit—a
perpetual right to the spaces effectuated by elimination of the Jackson's
Lease Contingency—by means of the aforementioned bellicose
communications and hardball tactics.
To answer that question, an examination of what the term
"wrongfulness" means in the context of the punitive damages statute is
required. In the context of punitive damages—meant to punish a
tortfeasor rather than compensate a plaintiff, see Bistline, 215 So. 3d at
19
609 (noting that conduct must "rise to the level of truly culpable behavior
deserving of punishment")—the term wrongfulness would refer to
conduct that is "[c]ontrary to conscience, morality, or law." See
wrongfulness, American Heritage Dictionary 2001 (5th ed. 2011); see also
Owens-Corning Fiberglas Corp. v. Ballard, 749 So. 2d 483, 486 (Fla.
1999) ("Under Florida law, the purpose of punitive damages is not to
further compensate the plaintiff, but to punish the defendant for its
wrongful conduct and to deter similar misconduct by it and other actors
in the future."). Such an interpretation is borne out by case law on the
issue of punitive damages, which have been described as those "reserved
for truly culpable behavior [that] are intended to 'express society's
collective outrage.' " Marder v. Mueller, 358 So. 3d 1242, 1245 (Fla. 4th
DCA 2023) (quoting KIS Grp., LLC v. Moquin, 263 So. 3d 63, 65–66 (Fla.
4th DCA 2019)). "Punitive damages are a form of extraordinary relief for
acts and omissions so egregious as to jeopardize not only the particular
plaintiff in the lawsuit, but the public as a whole, such that a
punishment—not merely compensation—must be imposed to prevent
similar conduct in the future." Grove Isle Ass'n, Inc. v. Lindzon, 350 So.
3d 826, 830 (Fla. 3d DCA 2022) (quoting BDO Seidman, LLP v. Banco
Espirito Santo Int'l, 38 So. 3d 874, 876 (Fla. 3d DCA 2010)). Presuming
for the sake of analysis that the evidence relied upon by Manor amounts
to a preliminary showing that Govindaraju, CCP, and Convergent may
have committed the tort of abuse of process, the evidence does not rise to
the level of the wrongfulness—and knowledge of such wrongfulness—
required to expose a defendant to a claim for punitive damages for
Manor's abuse of process claims.
The employment of ruthless negotiation tactics based on ongoing
litigation, even if during such negotiation a litigant seeks concessions
20
from the opposing party that are ancillary to the litigation, does not in
and of itself present an affront to "conscience, morality, or the law," see
wrongfulness, American Heritage Dictionary, 2001 (5th ed. 2011), so as to
constitute the type of "wrongfulness," see § 768.72(2)(a), that the punitive
damages statute is design to impose on a defendant as punishment.
Dissembling communications meant to obscure one's true intentions (or
to delay commitment to a strategic direction until more knowledge is
obtained); duplicitous representations to various actors in multiparty
negotiations for the purpose of sussing out weaknesses or realigning
shifting alliances in one's favor: these tactics, while arguably unseemly,
are hardly uncommon in the context of negotiations over the resolution
of contentious litigation. The punitive damages statute and case law
construing it require more than the natural products of human nature
exhibited by those that find themselves in the inherently antagonistic
milieu of the litigation process—more than the typical cunning and
aggressiveness commonly shown by litigants and their advocates
embroiled in negotiations over a fraught or high-stakes dispute that has
found its way to the courts. Rather, punitive damages are reserved for
anomalously transgressive conduct that is "outrageous in character" and
"extreme in degree." See Cleveland Clinic Fla. Health Sys. Nonprofit Corp.
v. Oriolo, 357 So. 3d 703, 706 (Fla. 4th DCA 2023) (alteration in original)
(quoting Payton Health Care Facilities, Inc. v. Est. of Campbell, 497 So. 2d
1233, 1240 (Fla. 2d DCA 1986)). Courts have described such intentional
conduct for which punitive damages are appropriate as t