Brian Freeman, as Successor Trustee of the Fiddlesticks Land Trust U/A/D September 25, 1984 v. Roz Berrin A/K/A Roslyn Berrin
CourtDistrict Court of Appeal of Florida
Date FiledDecember 2, 2022
Docket2D21-1885
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
BRIAN FREEMAN, as Successor Trustee of The Fiddlesticks Land
Trust U/A/D September 25, 1984,
Appellant,
v.
ROZ BERRIN a/k/a ROSLYN BERRIN, ROBERT BERRIN, and
STEVEN ROBINSON,
Appellees.
No. 2D21-1885
December 2, 2022
Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for
Lee County; Joseph C. Fuller, Jr., Judge.
John Charles Coleman and Thomas G. Coleman of Coleman &
Coleman, Fort Myers, for Appellant.
Mark C. Anderson of Anderson Law, PLLC, Fort Myers, for
Appellees.
LaROSE, Judge.
Brian Freeman appeals the trial court's nonfinal order entering
a temporary injunction that removed him as successor trustee of
The Fiddlesticks Land Trust U/A/D September 25, 1984
(hereinafter, the Fiddlesticks Trust). The trial court improperly
applied the Florida Trust Code, ch. 736, Fla. Stat. (2020), to an
action involving a land trust governed by the Florida Land Trust
Act, § 689.071, Fla. Stat. (2020). Nevertheless, the trial court
permissibly granted the temporary injunction in favor of Roz Berrin,
Robert Berrin, and Steven Robinson (collectively, the Beneficiaries)
because they demonstrated entitlement to injunctive relief under
the common law.
I. Background
In 1984, Mr. Freeman's father, Jeffrey Freeman, joined with
the Beneficiaries and others to invest in two adjacent parcels of
land in Lee County. They executed separate Certificates of
Participation and related documents to create two land trusts.
Jeffrey Freeman was the trustee of both, with the "power and
authority to protect and conserve, and to sell or lease or to
encumber or otherwise to manage and dispose of the real property
described in this instrument, as more specifically set forth in
Florida Statute 689.071."
2
The Certificates of Participation were virtually identical. They
authorized the trustee to sell, mortgage, or lease the trust property
with "the written consent of a majority in interest of the beneficial
owners of the property." The trustee was also authorized to sell the
property without consent if presented with a bona fide offer to
purchase the property within five years. The Certificates of
Participation provided that "[n]either the [trustee] nor the
[b]eneficiaries will engage in any form of trade or business with
respect to the [p]roperty." The Certificates of Participation did not
provide for removal of the trustee or mention chapter 736 or a
predecessor trust code.
In 1997, the Beneficiaries combined the two trusts into a
single land trust, the Fiddlesticks Trust, under an amended
Certificate of Participation. The terms of the prior Certificates of
Participation remained in force unless expressly modified by the
amendment.
The Beneficiaries held minority beneficial interests, and Jeffrey
Freeman held the majority interest, in the Fiddlesticks Trust. Upon
his death in 2011, Jeffrey Freeman's interest passed to his estate;
Brian Freeman became the successor trustee.
3
In 2018, Mr. Freeman, as successor trustee, sued the
Beneficiaries. He sought to foreclose on liens against their
beneficial interests for failure to pay their pro rata shares of
expenses pursuant to the terms of the Certificates of Participation.
The Beneficiaries filed counterclaims against Mr. Freeman.
They alleged that he breached his fiduciary and contractual duties
by failing to provide an accounting and access to trust records upon
demand; failing to provide records verifying the amount, source,
and reason for advancements made by Mr. Freeman and his
father's estate on behalf of the Fiddlesticks Trust; charging
unreasonable management fees; and failing to advise the
Beneficiaries of a condemnation action by the county. The
Beneficiaries asked the trial court to remove Mr. Freeman as trustee
and to order an accounting of trust assets and liabilities.
In December 2020, the Beneficiaries moved for a temporary
injunction to remove Mr. Freeman as the successor trustee based
on section 736.0706(2)(a) and irreparable harm caused by Mr.
Freeman's alleged ongoing breaches of his contractual and fiduciary
duties. As in their counterclaims, the Beneficiaries alleged that Mr.
Freeman breached various fiduciary and contractual obligations.
4
After a hearing, the trial court granted the Beneficiaries' motion and
removed Mr. Freeman as trustee.
II. Discussion
A. Application of Chapter 736 to a Land Trust
Mr. Freeman asserts that the trial court erroneously applied
chapter 736's removal provision to a chapter 689 land trust. The
Beneficiaries urge us to apply chapter 736 to the Fiddlesticks Trust
because land trusts are essentially the same as ordinary trusts.
We review questions of statutory interpretation de novo. See
Page v. Deutsche Bank Tr. Co. Ams., 308 So. 3d 953, 958 (Fla. 2020)
(citing Lieupo v. Simon's Trucking, Inc., 286 So. 3d 143, 145 n.2 (Fla.
2019)). "[T]he supremacy-of-the-text principle" guides our
determination of the meaning of the statute: "[T]he words of a
governing text are of paramount concern, and what they convey, in
their context, is what the text means.' " Levy v. Levy, 326 So. 3d
678, 681 (Fla. 2021) (quoting Page, 308 So. 3d at 958).
The Fiddlesticks Trust is a section 689.071 land trust. See
§ 689.071(12)(b)1 (providing that a trust created before June 28,
2013, is a land trust governed by the Florida Trust Act if "a
recorded instrument confers on the trustee the power and authority
5
described in s. 689.073(1)" and the recorded instrument or the trust
agreement either "expressly provides that the trust is a land trust"
or indicates that the parties intended "that the trust be a land
trust . . . without regard to whether the trustee's duties under the
trust agreement are greater than those limited duties described in
paragraph (2)(c)"); see also § 689.071(1), (2)(c).
The legislature passed the Florida Land Trust Act to permit the
use of land trusts, also known as Illinois Land Trusts, in Florida.1
Lawyers' Title Guar. Fund v. Koch, 397 So. 2d 455, 457 (Fla. 4th
DCA 1981). In contrast, the Florida Trust Code, codified in chapter
1 Curiously, if a trust created on or after June 28, 2013,
assigns the trustee duties that exceed the limited duties listed in
section 689.071(2)(c), the trust is not considered a "land trust," and
it is an express trust governed by chapter 736, including section
736.0706, Florida Statutes (2020)'s removal provisions.
§ 689.071(2)(c), (12); see also Fla. H.R. Comm. on the Judiciary, HB
229 (2013) Staff Analysis (final May 16, 2013), available on Westlaw
at FL Staff An., H.B. 229, 5/16/2013 ("If the trustee's duties exceed
the foregoing limited duties and the trust is created after the
effective date of the proposed amendment, then the trust will not be
treated as a land trust and will not be excluded from the operation
of [chapter 736]."). Yet, similar trusts, like the one in this case,
created before June 28, 2013, are considered "land trusts" and not
governed by chapter 736. § 689.071(12). It is unclear why the
legislature made this distinction.
6
736,2 governs "express trusts . . . and trusts created pursuant to a
law, judgment, or decree that requires the trust to be administered
in the manner of an express trust." § 736.0102(1).
But for exceptions not applicable here, section 689.071(12)
provides that the Florida Trust Code does not apply to land trusts.
See § 689.071(7), (12)(b)2. Even before the legislature added
subsection (12), the statute indicated that the Florida Trust Code,
generally, did not apply to land trusts. § 736.0102, Fla. Stat.
(2007-2020) (explaining that the Florida Trust Code does not
generally apply to land trusts); § 731.201(33), Fla. Stat. (1997)
(excluding land trusts under section 689.05 from the definition of
"trust" in chapter 737 "unless the context requires otherwise");
§ 731.201(32), Fla. Stat. (1984) (same).
To support Mr. Freeman's removal, the Beneficiaries want us
to insert the provisions of section 736.0706 into land trust law.
This, we cannot do. The legislature is the proper branch of
government to alter the statutory text. See State v. Lewars, 259 So.
3d 793, 798 (Fla. 2018) (explaining that courts may not "construe
2 The predecessor to the Florida Trust Code—Trust
Administration—was codified in chapter 737.
7
an unambiguous statute in a way which would extend, modify, or
limit[] its express terms or its reasonable and obvious implications";
and that "[s]uch a construction 'would be an abrogation of
legislative power' " (first alteration in original) (quoting Holly v. Auld,
450 So. 2d 217, 219 (Fla. 1984), abrogated on other grounds by
Conage v. United States, 346 So. 3d 594, 598 (Fla. 2022) (stating
that the courts may consider the statutory context and canons of
statutory interpretation to determine "whether a term has a 'plain'
or 'clear' meaning"))).
The case law upon which the Beneficiaries and the trial court
rely is inapposite. Brigham v. Brigham, 11 So. 3d 374 (Fla. 3d DCA
2009), did not involve a land trust. See id. at 384 (holding that
because the attorney failed to "to create a Florida Land Trust under
section 689.071, [the trust at issue] is a trust regulated by chapter
737"). Any suggestion in Brigham that the Florida Trust Code
applies to section 689.071 is dicta. See generally Lewis v. State, 34
So. 3d 183, 186 (Fla. 1st DCA 2010) ("When a court makes a
pronouncement of law that is ultimately immaterial to the outcome
of the case, it cannot be said to be part of the holding in the
8
case. . . . Consequently, in the context of the instant case, the
statements are dicta and not binding on this court.").
Further, In re Saber, 233 B.R. 547 (Bankr. S.D. Fla. 1999), a
case quoted in Brigham and relied on by the Beneficiaries, is also off
the mark. That case involves a bankruptcy case and addresses the
common law merger doctrine, an issue not before us. See In re
Saber, 233 B.R. at 549, 553 ("Well-established Florida case law
dictates that the legal and equitable interests are merged where
nothing remains to be done to carry out the intention of the
settlor.").3
B. Removal of a Land Trustee Under the Common Law
Despite the inapplicability of section 736.0706, the
Beneficiaries asserted irreparable harm caused by Mr. Freeman's
alleged ongoing breaches of his duties.4 Although the order before
3 The legislature amended section 689.071 in 2013 to
"prohibit[] the operation of the doctrine of merger to execute a land
trust or to vest the trust property under certain conditions." Ch.
2013-240, §§ 1-2 Laws of Fla.; see also § 689.071(5).
4 Many of the fiduciary duties listed in chapter 736 derive from
the common law. Cf. Galler, 18 Fla. Prac., Law of Trusts § 18:8
(2022 ed.) ("In a series of separate sections, the [Florida Trust] Code
codifies many of the foundational common law duties of a trustee as
well as several other more specifically targeted duties relating to the
9
us is peppered with references to the fiduciary duties listed in
chapter 736, we cannot ignore that the trial court separately found
collection, management, and distribution of trust property."). To
the extent that a statute does not explicitly override common law,
the land trustee is subject to the same fiduciary duties imposed by
the common law on all trustees. See generally United States v.
White Mountain Apache Tribe, 537 U.S. 465, 475 (2003)
("[E]lementary trust law, after all, confirms the commonsense
assumption that a fiduciary actually administering trust property
may not allow it to fall into ruin on his watch. 'One of the
fundamental common-law duties of a trustee is to preserve and
maintain trust assets.' " (quoting Cent. States, Se. & Sw. Areas
Pension Fund v. Cent. Transp., Inc., 472 U.S. 559, 572 (1985)));
Quinn v. Phipps, 113 So. 419, 421 (Fla. 1927) ("Stripped of all
embellishing verbiage, it may be confidently asserted that every
instance in which a confidential or fiduciary relation in fact is
shown to exist will be interpreted as such. The relation and duties
involved need not be legal; they may be moral, social, domestic or
personal. If a relation of trust and confidence exists between the
parties (that is to say, where confidence is reposed by one party and
a trust accepted by the other, or where confidence has been
acquired and abused), that is sufficient as a predicate for relief.
The origin of the confidence is immaterial."); Home Fed. Sav. & Loan
Ass'n of Chicago v. Zarkin, 432 N.E.2d 841, 845 (Ill. 1982) ("Land
trustees in Illinois, therefore, are subject to the fiduciary duties
imposed by the law on all trustees; and the general principles of
trust law regarding these duties govern the decision of this case."),
superseded by 765 Ill. Comp. Stat. 415/1-4 (1982), as recognized in
Sanelli v. Glenview State Bank, 483 N.E.2d 226, 228 (Ill. 1985).
Regarding fiduciary duties, section 689.071 specifies that a
land trustee does not breach a fiduciary duty where the land
trustee is or "become[s] a secured or unsecured creditor of the land
trust, the beneficiary of the land trust, or a third party whose debt
to such creditor is guaranteed by a beneficiary of the land trust."
§ 689.071(10)(b).
10
that Mr. Freeman's alleged conduct constituted a "serious breach of
trust." The trial court listed Mr. Freeman's duties in its order:
1. The Trustee holds "legal title to the Property as an agent
for the Beneficiaries, and solely for the convenience of the
Beneficiaries, in order to facilitate the management and
disposal of the Property . . . ."
2. The Trustee "will take no action with respect to the
Property . . . without the written consent of a majority in
interest of the beneficial owners of the Property except for
sales of the Property pursuant to Article 13 of this
Agreement."
3. "Neither the [Trustee] nor the Beneficiaries will engage in
any form of trade or business with respect to the
Property."
4. "The [Trustee] has the authority and the discretion to
incur any and all reasonable expenses, in connection
with the management of the trust property."
The trial court recognized that the Beneficiaries were entitled to
have the Fiddlesticks Trust managed in the manner specified by the
trust documents, i.e., the Certificates of Participation. In rendering
a temporary injunction, the trial court found that Mr. Freeman
abdicated his fiduciary and contractual obligations.
Even though section 736.0706 does not apply to the
Fiddlesticks Trust and section 689.071 does not explicitly provide a
mechanism to remove Mr. Freeman, section 689.071, on its face,
does not bar application of equitable remedies to stave off harms
11
caused by a trustee's dereliction of duties. See § 689.071(14) ("This
act is remedial in nature and shall be given a liberal interpretation
to effectuate the intent and purposes hereinabove expressed."); see
also Thornber v. City of Fort Walton Beach, 568 So. 2d 914, 918 (Fla.
1990) ("The presumption is that no change in the common law is
intended unless the statute is explicit and clear in that regard.
Unless a statute unequivocally states that it changes the common
law, or is so repugnant to the common law that the two cannot
coexist, the statute will not be held to have changed the common
law." (citations omitted)).
The trust statutes involved in this case emerge from a rich
common law history of equitable relief to preserve the status quo
pending a final determination of the merits of a trust case. See
generally Nickels v. Philips, 18 Fla. 732, 734-35 (1882) (recognizing
that to preserve the trust property, courts of equity have removed
trustees "who have abused their trust"; where "the danger to the
due execution of the trust and the due disposition of the trust fund
requires such an interposition to prevent irreparable mischief";
where "the acts or omisions [sic] . . . endanger the trust property,
or . . . show a want of honesty, or a want of proper capacity, or a
12
want of reasonable fidelity"; and "in all cases where there is a failure
of suitable trustees to perform the trust, either from accident, or
from the refusal of the old trustees to act, or from their original or
supervenient incapacity to act, or from any other cause" (quoting
Joseph Story, Commentaries on Equity Jurisprudence: As
Administered in England and America §§ 1287, 1289 (Charles C.
Little & James Brown eds., A. Maxwell & Son 4th ed. 1846))); cf.
Becker v. Dulberg, 176 So. 2d 583, 584 (Fla. 3d DCA 1965)
("Appellants filed their complaint in equity seeking removal of the
appellee as trustee of a certain land trust."). And, there can be no
question but that trial courts may order equitable relief if the
moving party has alleged and proved facts entitling it to relief. See
Morgan v. Herff Jones, Inc., 883 So. 2d 309, 313 (Fla. 2d DCA 2004)
(explaining that a trial court should grant a temporary injunction
"after the moving party has alleged and proved facts entitling it to
relief" (citing Liberty Fin. Mortg. Corp. v. Clampitt, 667 So. 2d 880,
881 (Fla. 2d DCA 1996))); see also Chase Med. Grp. v. Palmetto
Clinic Ctr., 549 So. 2d 1111, 1112 (Fla. 3d DCA 1989) (agreeing that
the trial court could grant the temporary injunction under both
statutory and common law).
13
Admittedly, prevailing on a motion for temporary injunction is
no small task. See Duryea v. Slater, 677 So. 2d 79, 81 (Fla. 2d DCA
1996) ("A temporary injunction is an extraordinary remedy that
should be granted sparingly and only after the moving party has
alleged and proven facts which entitle him to relief." (citing Liberty
Fin. Mortg. Corp., 667 So. 2d at 880)).
As movants, the Beneficiaries had to demonstrate "(1) a
likelihood of irreparable harm" and the lack of an adequate remedy
at law; (2) "substantial likelihood of success on the merits"; (3) the
harm to the Beneficiaries outweighs any potential harm to Mr.
Freeman; and (4) the grant of a temporary injunction will not
disserve the public interest. See Manatee County v. 1187 Upper
James of Fla., LLC, 104 So. 3d 1118, 1121 (Fla. 2d DCA 2012)
(quoting Polk County v. Mitchell, 931 So. 2d 922, 926 (Fla. 2d DCA
2006)); e.g., State Inv. Holding, Inc. v. Merrick P'ship, LLC, 103 So.
3d 232, 234 (Fla. 3d DCA 2012) (holding that the appellant failed to
show irreparable injury where "the appellees represented both to
the trial court and this Court that they will not transfer or
encumber the property without court approval and they have not
sought such approval").
14
Despite the dissent's statement otherwise, the parties
addressed the trial court's authority to grant a temporary
injunction. Indeed, they discussed, at length, the common-law
elements required for a temporary injunction. See generally REV
Recreation Grp., Inc. v. LDRV Holdings Corp., 259 So. 3d 232, 237
(Fla. 2d DCA 2018) (recognizing that sufficient findings to support a
common law temporary injunction requires "(1) a likelihood of
irreparable harm; (2) unavailability of an adequate legal remedy; (3)
a substantial likelihood of success on the merits; and (4)
considerations of the public interest support the entry of the
injunction" (quoting Salazar v. Hometeam Pest Def., Inc., 230 So. 3d
619, 621 (Fla. 2d DCA 2017))).
The trial court found that the Beneficiaries satisfied their
burden. Our record supports that finding. For instance, the trial
court found and the record supports that Mr. Freeman "is operating
a cattle business on the Trust property which is specifically
prohibited by the terms of the Certificate of Participation." Mr.
Freeman incorrectly believes that paragraph 5(1)(A) of the
Certificates of Participation permits the cattle business. That
paragraph permits the trustee to incur reasonable expenses,
15
including "compensation for accounting, administrative, legal,
technical and management or brokerage services rendered to the
Trust and the TRUSTEE." A cattle business is not in that
paragraph's scope.
The trial court also found that Mr. Freeman failed to
administer the Fiddlesticks Trust in good faith and in the
Beneficiaries' interest, charged high administrative fees, failed to
provide accountings and an explanation of the expenses, incurred
unreasonable expenses, and failed to disclose to the Beneficiaries a
condemnation action filed against the trust property by Lee
County.5
Further, the record contradicts the dissent and Mr. Freeman's
belief that the order for temporary injunction failed to address Mr.
Freeman's affirmative defenses relating to the Beneficiaries' alleged
failure to pay their pro rata share of expenses and taxes for over ten
years. The trial court's findings and the record reflect that the
5 Notably, the condemnation action began in July 2020, about
five months before the Beneficiaries sought injunctive relief. The
county voluntarily dismissed the case shortly after the Beneficiaries
moved to intervene. Mr. Freeman failed to communicate about a
lawsuit potentially impacting the res of the Fiddlesticks Trust.
16
Beneficiaries repeatedly demanded, to no avail, accountings and
records for expenses that Mr. Freeman sought to recoup. The trial
court found that Mr. Freeman did not "provide evidence that he has
proper[l]y accounted for partnership/beneficiary contributions or
expenditures by utilizing the [Fiddlesticks Trust] bank account
which was established for such purpose." We cannot and will not
reweigh the evidence or substitute our judgment for that of the trial
court where there is evidence to support the judgment. See E-Racer
Tech, LLC v. Off. of Att'y Gen. Dep't of Legal Affs., 198 So. 3d 1107,
1111 (Fla. 4th DCA 2016) (explaining that on appeal of a temporary
injunction, "[t]he standard of review on appeal does not call for a
reweighing of the evidence").
We cannot ignore the trial court's inherent authority to grant
equitable relief as may be appropriate, an issue raised on appeal.
See generally Rosen v. Rosen, 167 So. 2d 70, 72 (Fla. 3d DCA 1964)
("Trustees are accountable to equity, and their performance may be
directed and controlled by a court of equity. Thus, in [33 Fla. Jur.
Trusts § 111], it is said: 'Courts of equity have original, general, and
inherent jurisdiction over trusts and the administration thereof. All
trusts, whether express or implied, are within the jurisdiction of the
17
chancellor, even though the relief demanded is for the recovery of
money. Proceedings involving trusts are ordinarily within the
exclusive jurisdiction of equity. The aid of equity may at any time
be invoked in the interest of a particular trust when the subject
matter thereof is put in jeopardy or when other good cause is
shown. This jurisdiction embraces authority in a proper case to
impress a resulting or constructive trust on property, assuming
that no adequate remedy exists at law, or to compel an accounting
by the trustee.' "). The trial court made the findings necessary to
grant a temporary injunction, a common law equitable remedy not
displaced by section 736.0706 or section 689.071. See generally
REV Recreation Grp., Inc., 259 So. 3d at 238 (stating that a
temporary injunction is "a common law equitable remedy").
We affirm the trial court's order.
KHOUZAM, J., Concurs.
ATKINSON, J., Concurs in part and dissents in part with opinion.
18
ATKINSON, Judge, Concurring in part and dissenting in part.
Although I concur in part II.A of the majority opinion, I
nonetheless conclude that the trial court's entry of the order
removing Freeman as trustee of a land trust was erroneous and
must be reversed. Therefore, I respectfully dissent as to part II.B of
the majority opinion and dissent from the result.
Additionally, perhaps due to the alternative rationale upon
which it relied, the majority opinion elides analysis necessary to
resolve the question of the applicability of chapter 736 to land
trusts and does not address arguments raised by the parties with
respect to the retroactive application of the 2013 version of section
689.071 and the merits of the trial court's order entering a
temporary injunction in the Beneficiaries' favor. Therefore, I
address those issues and arguments below.
I. Application of the Florida Land Trust Act, § 689.071,
Florida Statutes
The majority correctly explains that chapter 736 generally
does not apply to land trusts created pursuant to section 689.071.
See § 736.0102(1), (3) (providing that chapter 736 governs express
trusts and "does not apply to any land trust under s. 689.071,
19
except to the extent provided in s. 689.071(7), s. 721.08(2)(c)4., or
s. 721.53(1)(e)"). The majority also correctly concludes that the
Fiddlesticks Trust is a land trust created pursuant to section
689.071. However, the opinion does not fully explain how it arrived
at the latter conclusion.
Section 689.071 in relevant part, defines a land trust as
any express written agreement . . . by which a . . . trust
is declared of any land . . . under which the title to real
property . . . is vested in a trustee by a recorded
instrument that confers on the trustee the power and
authority prescribed in s. 689.073(1) and under which
the trustee has no duties other than the following:
1. The duty to convey, sell, lease, mortgage, or deal with
the trust property, or to exercise such other powers
concerning the trust property as may be provided in the
recorded instrument, in each case as directed by the
beneficiaries[;] . . . .
2. The duty to sell or dispose of the trust property at the
termination of the trust; [or]
3. The duty to perform ministerial and administrative
functions delegated to the trustee in the trust agreement
or by the beneficiaries[;] . . .
....
However, the duties of the trustee of a land trust created
before June 28, 2013, may exceed the limited duties
listed in this paragraph to the extent authorized in
subsection (12).
20
§ 689.071(2)(c). The power and authority of a trustee of a land trust
prescribed in section 689.073(1) are "to protect, to conserve, to sell,
to lease, to encumber, or otherwise to manage and dispose of the
[trust] property." § 689.073(1).
As explained by the majority, "chapter 736 does not apply to
[section 689.071] land trust[s]" except as otherwise expressly stated
in section 689.071. § 689.071(12). The only provisions of the
Florida Trust Code made applicable to land trusts by section
689.071(7) are irrelevant to this case. See § 689.071(7) (providing
that sections 736.081256 and 736.10137 apply to all land trusts
otherwise created pursuant to section 689.071); .071(2)(c)4
(acknowledging that certain provisions of chapter 736 may apply to
land trusts that are timeshare estate trusts or vacation club trusts
by operation of chapter 721).
6 Section 736.08125 provides that successor trustees are not
personally liable for actions taken by prior trustees and do not have
a duty to institute claims against a prior trustee or the prior
trustee's estate for the prior trustee's actions under certain
circumstances. § 736.08125(1).
7 Section 736.1013 outlines the personal liability of the trustee
for contract and tort claims against the trust. § 736.1013(1)–(4).
21
Section 689.071(12)(a) provides that "[a] trust is not a land
trust governed by this section if there is no recorded instrument
that confers on the trustee the power and authority prescribed in s.
689.073(1)." Section 689.071(12)(b)1 provides that "a trust created
before June 28, 2013," is a land trust governed by the Florida Trust
Act "if a recorded instrument confers on the trustee the power and
authority described in s. 689.073(1) and . . . [t]he recorded
instrument or the trust agreement [either] expressly provides that
the trust is a land trust" or indicates that the parties intended "that
the trust be a land trust . . . without regard to whether the trustee's
duties under the trust agreement are greater than those limited
duties described in paragraph (2)(c)."8
The Fiddlesticks Trust meets the statutory requirements for a
land trust under section 689.071. The deeds for the two parcels
that make up the Fiddlesticks Trust were recorded and confer on
8 Section 689.071(12)(b)2 provides that a trust created after
June 28, 2013, is not a land trust governed by that section if the
recorded deed or the trust agreement either "expressly provides that
the trust is to be governed by chapter 736, or by any predecessor
trust code or other trust law other than" section 689.071 or
indicates that the parties intended for "the trust [to] be governed by
chapter 736, or by any predecessor trust code or other trust law."
22
the trustee the "power and authority to protect and to conserve, and
to sell or lease or to encumber or otherwise to manage and dispose
of the real property described in this instrument, as more
specifically set forth in Florida Statute 689.071 . . . ." See
§ 689.073(1) (enumerating "the power[s] and authority [of a trustee]
to protect, to conserve, to sell, to lease, to encumber, or otherwise to
manage and dispose of the real property described in the recorded
instrument"); see also § 689.071(2)(c), (12)(b)1. The deeds expressly
cite to section 689.071 when outlining the duties of the trustee of
the Fiddlesticks Trust properties; therefore, "[t]he intent of the
parties that the trust be a land trust is discern[ible] from the trust
agreement or the recorded instrument." See § 689.071(12)(b)1.b.
Although they do not expressly reference section 689.071, the
Certificates of Participation provide that the trustee has the power
to sell, lease, encumber, and otherwise manage or dispose of the
property—the powers of a trustee, see §§ 689.073(1);
689.071(2)(c)—subject to the requirement that the trustee obtain
the consent of a majority in interest of the beneficiaries. Cf.
§ 689.071(2)(c)1–3, (12)(b)1.b. The amendment to the Certificates of
Participation provides that the Fiddlesticks Trust is a "land trust."
23
Cf. § 689.071(12)(b)1.a. In addition to satisfying section
689.071(12)(b)1, the Fiddlesticks Trust does not meet the criteria in
section 689.071(12)(b)2, which outlines when a trust is not a land
trust governed by the Florida Land Trust Act. Neither the deeds,
the Certificates of Participation, nor the amendment "expressly
provide[]" or indicate that the parties intended for the Fiddlesticks
Trust to "be governed by chapter 736, or by any predecessor trust
code or other trust law other than" the Florida Land Trust Act. See
§ 689.071(12)(b)2.a–b.
For the foregoing reasons, the Fiddlesticks Trust is a land
trust governed by section 689.071. Unlike the Florida Trust Code,
section 689.071 does not provide that a court may remove a
trustee. Likewise, the deeds, Certificates of Participation, and
amendment to the Certificates of Participation governing the
Fiddlesticks Trust do not include any provisions relating to removal
of a trustee.
The Beneficiaries moved for the temporary injunction to
remove Freeman as the successor trustee of the Fiddlesticks Trust,
and the trial court granted the injunction, based explicitly on
section 736.0706(2), which provides that "[t]he court may remove a
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trustee if . . . [t]he trustee has committed a serious breach of trust."
§ 736.0706(2)(a). However, section 736.0706 does not apply to the
trust in this case because it is not among the provisions of the
Florida Trust Code made applicable by section 689.071 to land
trusts like the Fiddlesticks Trust. Cf. §§ 689.071(7), (12);
736.0102(3). Therefore, the trial court erred by granting the motion
for a temporary injunction to remove Freeman as trustee of the
Fiddlesticks Trust based on section 736.0706.
II. Retroactivity and Impairment of the Obligations of
Contract
My conclusion that chapter 736 generally does not apply to
the Fiddlesticks Trust—a land trust—except as otherwise
specifically provided in section 689.071 is based on the most
recently amended version of section 689.071. See Ch. 2013-240,
§ 2, Laws of Fla. The Beneficiaries argue that applying the 2013
version of section 689.071 improperly gives retroactive application
to the statutory amendment that impairs the obligations of their
preexisting contracts which were executed in 1984. Presumably
because the majority concludes that the common law of trusts
provides a mechanism by which the trial court could have removed
25
the trustee of the land trust, it declined to address this argument.
Nonetheless, the Beneficiaries' argument is unavailing.
The remedy the Beneficiaries sought in their motion for
preliminary injunction—removal of the trustee for a serious breach
of trust pursuant to section 736.0706(2)(a)—did not exist at the
time the Fiddlesticks Trust was created by recording the deeds and
execution of the Certificates of Participation. The Florida Land
Trust Act was enacted in 1963. Ch. 63-468, §§ 1–6, Laws of Fla.
The 1963 version of the statute was silent regarding the
applicability of other statutes and trust law to land trusts created
and governed under the statute. See id. Over a decade after the
section 689.071 was enacted, the legislature enacted chapter 737,
Florida Statutes, governing trust administration. See ch. 74-106,
§ 1, Laws of Fla. Chapter 737 was the predecessor to chapter 736,
which was not enacted until 2006. See Ch. 2006-217, § 1, Laws of
Fla.. In 1984, the legislature amended section 689.071 to apply one
section of chapter 737 to land trusts: "In addition to any other
limitations on personal liability existing pursuant to statute or
otherwise, the provisions of s. 737.306 [governing personal liability
of a trustee for the trust's obligations] shall apply to the trustee of a
26
land trust created pursuant to this section." Ch. 84-31, § 1, Laws
of Fla.
Chapter 737 did not itself create a cause of action for removal
of a trustee; instead, it merely acknowledged parties' contractual or
common law rights to remove the trustee if the contract or the
common law so provided. Cf. § 737.201(1)(a), Fla. Stat. (1984) ("The
proceedings that may be maintained under this section are those
concerning the administration and distribution of trusts, the
declaration of rights, and the determination of any other matters
involving trustees and beneficiaries of trusts. These include, but
are not limited to, proceedings to: (a) Appoint or remove a trustee.");
.402(4)(e) ("A person who has the right to remove or to replace a
trustee does not possess nor may that person be deemed to
possess, by virtue of having that right, the powers of the trustee
that is subject to removal or to replacement."). In 2006, when the
legislature enacted chapter 736 to replace chapter 737 it created a
statutory right to removal of a trustee who "has committed a serious
breach of trust." § 736.0706(2)(a). No similar statutory right
existed in chapter 737, which was in effect at the time of the
execution of the Certificates of Participation.
27
Therefore, the Beneficiaries did not have a statutory right to
remove the trustee for a serious breach of trust based on either
section 736.0706 or chapter 737 at the time that the Fiddlesticks
Trust deeds were recorded and the Certificates of Participation were
executed. The Beneficiaries argue that retroactive application of the
2013 amendment to section 689.071 would be erroneous, but the
statutory remedy in section 736.0706 on which they seek to rely—
over against the amended version of section 689.071 they contend
must not be retroactively applied—would itself not even be
applicable but for retroactive application of chapter 736. In other
words, even if this court were to decline to retroactively apply the
current statutory scheme, that would mean the statutory removal
remedy they seek to invoke was not available to the Beneficiaries in
1984, because it was not enacted until 2006, long after the deeds
were recorded and the Certificates of Participation were executed in
1984 and the amendment to the Certificates of Participation was
executed in 1997.
For these reasons, the Beneficiaries' argument that retroactive
application would violate the constitutional prohibition on the
impairment of the obligation of contracts fails. "[A]rticle I, section
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10, of the Florida Constitution mandates that '[n]o . . . law
impairing the obligation of contracts shall be passed.' " Searcy,
Denney, Scarola, Barnhart & Shipley, etc. v. State, 209 So. 3d 1181,
1190 (Fla. 2017) (second alteration in original) (quoting art. I, § 10,
Fla. Const.). "To impair a preexisting contract, a law must 'have the
effect of rewriting antecedent contracts' in a manner that 'chang[es]
the substantive rights of the parties to existing contracts.' " Id.
(alteration in original) (quoting Manning v. Travelers Ins. Co., 250
So. 2d 872, 874 (Fla. 1971)).
The 2013 amendment did not "chang[e] the substantive rights
of the parties," see id. (quoting Manning, 250 So. 2d at 874), as they
existed when the deeds were recorded and the Certificates of
Participation were executed in 1984 and when the amendment to
the Certificates of Participation was executed in 1997. Chapter
737—the statute governing trust administration in effect at the time
the parties recorded the deeds and executed the 1984 Certificates of
Participation and the 1997 amendment to the Certificates of
Participation for the Fiddlesticks Trust—did not provide a
substantive statutory right to remove a trustee for a serious breach
of trust. See § 737.201(1)(a); .402(4)(e). Therefore, application of
29
provisions of the Florida Land Trust Act that were not in effect at
the time that the deeds were recorded and the Certificates of
Participation were executed would not impair any obligations of the
Certificates of Participation and the 1997 amendment. The only
obligation created by the Certificates of Participation and the 1997
amendment would be for the trustee to subject hims