ORDER THIS CAUSE came before the Court for oral argument on January 22, 2014 on Defendant, City of Miami Beachs (the City[s]) Motion to Dismiss or Strike Plaintiffs Complaint (Motion) [ECF No. 16], filed November 22, 2013. The undersigned has carefully considered the parties written submissions, the record, oral arguments, and applicable law. I. BACKGROUND 1
This case involves various claims in connection with the Sadigo Court Apartment Hotel (the Sadigo) located at 334 20th Street in Miami Beach, Florida. (See Compl. 1). Eisenberg is the president of Eisenberg Development, doing business as the Sadigo. (See id. 12). Eisenberg Development is a Florida corporation, with its principal place of business in Miami Beach, Florida. (See id. 1). The City is a Florida municipal corporation. (See id. 3). Eisenberg Development purchased the Sadigo in 1988 and continues to own and operate it. (See id. 6, 9). Built in 1936, the Sadigo is a contributing historic structure in the Citys Museum Historic District. (Id. 6).
1 The facts, taken from the Complaint [ECF No. 1], are presented in the light most favorable to Plaintiffs and are accepted as true. Case No. 13-23620-CIV-ALTONAGA/Simonton
2 A. Relationship Between Eisenberg and the City In 1993, Eisenberg discovered the Citys bid selection process was corrupt. (See id. 10). The City requested bid proposals to lease space in the Old City Hall. (See id.) The City rejected Eisenberg and the Miami Design Preservation Leagues joint bid without any consideration, selecting a competing bid instead. (See id.). Eisenberg sued the City to reopen the bid process. (See id. 11). Through discovery, Eisenberg learned the winning bidder was receiving free rent in the Old City Hall during the bid challenge. (See id.). Eisenberg also discovered a City commissioner and his son had received what amounted to an illegal brokerage commission on a $10 million real estate transaction. (Id.). Eisenberg subsequently disclosed these instances of City corruption to the media. (See id.). As a result of [] Eisenbergs disclosures, a scandal ensued which ultimately led to the City manager resigning, and the City attorney being forced out . . . . [T]he Florida Department of Business and Professional Licensing subsequently brought an eleven-count administrative complaint against the City commissioners son, [the] sons company, and the winning bidder . . . , alleging kickbacks and illegal profits on the real estate transaction. (Id. 12). The winning bidder agreed to pay fines. (See id.). In 1995, Eisenberg challenged the City and Miami-Dade Countys creation of a redevelopment area related to the Miami Beach Convention Center. (See id. 11). City officials claimed Eisenberg was taking revenge after losing his earlier lawsuits challenging the bid selection process. (See id.). Plaintiffs do not allege any intervening events between 1995 and 2004. Between 2004 and 2009, Plaintiffs and others in the neighborhood voiced many complaints about the health and safety risks and Code compliance violations of an abandoned Case No. 13-23620-CIV-ALTONAGA/Simonton
3 hotel in the neighborhood. (See id. 20). The City investigated some of these complaints but did not resolve the problems with the building. (See id.). In 2009, Eisenberg urged the Citys Zoning Board of Adjustment to handle the Code violations more quickly and deny the building owners request for a one-year extension to comply with the Code. (See id.). The Zoning Board ultimately required the owner to board the building and remove loose debris before granting the extension. (See id.). In light of this, Eisenberg withdrew his objection, and the Zoning Board later approved the extension. (See id.). Between 2006 and 2012, multiple City officials were investigated and prosecuted for corruption. In 2006, a City electrical inspector was arrested for soliciting bribes (see id. 14); in 2008, a City fire protection analyst was fired after reporting suspicions of kickbacks (see id. 15); also in 2008, a City planner, examiner, and inspector were all caught accepting bribes (see id. 16); in 2012, City procurement director, Gus Lopez, was charged with sixty-three felony counts, including racketeering, bid-tampering, and illegal compensation (see id. 17); and also in 2012, seven City Code compliance and fire department inspectors, including the Citys lead code compliance officer, Jose Alberto (Alberto), were arrested for extortion and accepting bribes in June 2011 to bypass City Code enforcement inspections and fines (see id. 1819). B. The Sadigo The Sadigo originally opened in 1936 as an apartment with transient rentals, and it has continued operating in this fashion without objection from the City. (See id. 22). The Sadigo is located in an RM-2 zoning district, where the main permitted uses include apartments, apartment hotels, and hotels. (Id. 23 (quoting CITY OF MIAMI BEACH LAND DEV. CODE (the City Code) 142212)). According to the City Code, hotels are only intended for occupancy by transient residents, and apartments require cooking facilities. (Id. (quoting City Case No. 13-23620-CIV-ALTONAGA/Simonton
4 Code 114-1)). The City Code permits transient rentals for apartment hotels and apartments in RM-2 zones. (See id. 24). The Sadigos original City-issued certificates of use and occupancy (CO[s]) were for use as apartments, and the Sadigo has maintained this status. (See id. 22). For a period of time, the Sadigo rented units on an annual basis. (See id. 25). In 2006, after obtaining a state transient public lodging establishment license from the Florida Department of Business and Professional Regulations Division of Hotels and Restaurants, the Sadigo resumed transient rentals. (See id. 2526). The Sadigo is licensed for transient apartment rentals. (See id. 26). Plaintiffs verified with the City that transient apartment rentals are legally permissible for the zoning district and the COs applicable to the Sadigo. (See id. 27). Plaintiffs obtained a City Resort Tax Registration Certificate for the Sadigo, required for transient (six months or less) rentals of hotel and apartment units. (See id. (citing City Code 102306)). Upon renting to transient guests in late 2006, the Sadigo constructed a cold food preparation area in the Sadigos interior courtyard pursuant to a City-approved and issued building permit. (Id. 29). After construction was completed and signed[-]off [] by the City, the City informed Plaintiffs that it was a hotel[,] not an apartment . . . . (Id.). The City required the Sadigo to obtain a new CO as a hotel because it rented apartments to transient guests and operated a food preparation area that was actually a restaurant. (Id.). Plaintiffs complied and applied for a CO as a hotel (id. 31), and afterward, were told the Sadigo must comply with the fire protection standards applicable to brand new hotel structures (id. 32 (internal quotation marks omitted)). From 2006 to 2012, Plaintiffs received numerous notices of violation and cease and desist Case No. 13-23620-CIV-ALTONAGA/Simonton
5 orders 2 from the City citing the Sadigo for violating City fire safety codes by allowing transient rentals of its apartments. (See id. 50). The City Building Official issued a decision requiring the installation of a fire sprinkler system and refused to accept an Engineers Equivalency Report from the Sadigo explaining why a fire sprinkler system was unnecessary. (See App. Exs., Ex. 8 [ECF No. 17-8]). On April 15, 2010, the City Board of Rules and Appeals (the BORA) considered the Sadigos appeal of the Building Officials decision. (See id.). The BORA affirmed the Building Officials determination and notified Eisenberg of its decision in an April 21, 2010 letter. (See id.). Plaintiffs objected to the Citys classification of the Sadigo as a new hotel and attended a City Commission meeting on January 19, 2011. (See id. 29). At the meeting, Plaintiffs submitted a letter and materials explaining the various reasons the Sadigo should not be treated as a new hotel. (See id.). The Mayor, City Commissioners, City Manager, and City Attorney were indifferent and the City Fire Chief took offense to Plaintiffs claims of unfair treatment. (See id.). Plaintiffs believe the City Fire Marshall told the Sadigos mortgagee the Sadigo was illegally operating as a hotel. (See id. 38). On January 21, 2011, the Sadigos mortgagee advised it would not renew its loan after previously encouraging Plaintiffs to renew the Sadigos loan. (See id. 37). Plaintiffs were left with no choice but to refinance the Sadigo at a higher interest rate an enormous additional cost. (See id.).
2 The City issued the Sadigo: a November 5, 2007 Fire Inspection Report and Cease and Desist Notice (see App. Exs., Ex. 1 [ECF No. 17-1]); a June 27, 2011 Fire Inspection Report and Cease and Desist Order (see id., Ex. 5 [ECF No. 17-5]); a September 23, 2011 Cease and Desist Order and Fire Inspection Report and a September 29, 2011 Notice of Fire Violation (see id., Ex. 6 [ECF No. 17-6]); and October 20, 2010, April 5, 2011, and September 27, 2011 Notices of Violation and October 23, 2007 Fire Inspection Report (see id., Ex. 7 [ECF No. 17-7]). The City also issued a March 15, 2010 response letter (see id., Ex. 9 [ECF No. 17-9]) by the Fire Marshall regarding the Sadigos engineering report, and a June 28, 2011 Plans Processing Approvals notice (see id., Ex. 10 [ECF No. 17-10]). These exhibits are in the public record and are attached to the Citys Motion. (See generally App. Exs. [ECF No. 17]). They can therefore be considered on a Rule 12(b)(6) motion. See infra, Part II (discussing legal standard). Case No. 13-23620-CIV-ALTONAGA/Simonton
6 In 2011, Eisenberg Development filed a petition in the Eleventh Judicial Circuit Court of Florida seeking a temporary injunction against the City. 3 (See App. Exs., Ex. 4 at 2 [ECF No. 17-4]); see also Eisenberg Dev. Corp. v. City of Miami Beach, No. 11-20234 CA 15 (Fla. 11th Cir. Ct. 2012). On January 5 and 6, 2012, the state trial court held an evidentiary hearing regarding compliance with the Florida Fire Prevention Code (Fire Code). (See id.). On January 10, 2012, the trial court denied the temporary injunction for failure to satisfy the requirements for injunctive relief. (See id. 5). In April 2011, the City informed the Sadigos longstanding client, the Art Basel Foundation, the Sadigo was illegally operating as a hotel. (See Compl. 39). The Foundation then severed its business relationship with Plaintiffs. (See id.). In June 2011, the City sent undercover police officers to the Sadigo to verify the Sadigo was renting to transient guests. (See id. 40). After observing transient rental activity, the Citys police officers shut down the Sadigo for noncompliance with City fire codes, evicting the Sadigos tenants and guests. (See id.). This shutdown caused the Sadigos largest client, responsible for over $100,000 in annual revenue, to sever its business relationship with Plaintiffs. (See id. 41). In December 2011, fifteen police offers, ten code enforcement officers, including Alberto, and five fire officials forcibly shut down the Sadigo for a second time for violations of City fire codes. (See id. 42). The shut down occurred while the Sadigo was hosting the Poo[l] Art Fair during the renowned Art Basel Miami Beach art show, forcing guests to vacate the premises in one hour. (Id. 4243). Alberto offered to solve Eisenbergs problems by
3 The Florida Third District Court of Appeal affirmed, per curium, the trial courts non-final, January 10, 2012 Order. See Eisenberg Dev. Corp. v. City of Miami Beach, 100 So. 3d 702, 702 (Fla. 3d DCA 2012). The City only provided the January 10, 2012 Order, and most of the record is not readily available to the Court. As the judicial record provided is incomplete, the Court is unable to take notice of relevant documents. Case No. 13-23620-CIV-ALTONAGA/Simonton
7 using his people, insinuating a bribe would be due from [] Eisenberg. When [] Eisenberg refused by stating he already had legal counsel working on it, Alberto stated . . . Eisenberg would not get far using legal means. (Id. 44). Eisenberg was then arrested. (See id. 45). In April 2012, Alberto and other code compliance officers and fire department inspectors were arrested for bribes they accepted in June 2011. (See id. 46). Since these arrests, the Sadigo has not received any further code compliance notices or violations. (See id. 47). In the Complaint, Plaintiffs allege the following claims: violation of Plaintiffs right to equal protection of law under the Fifth and Fourteenth Amendments to the U.S. Constitution (Count I) (see id. 6370); First Amendment retaliation against Plaintiffs (Count II) (see id. 7178); violation of due process of law under 42 U.S.C. sections 1983 and 1988 (Count III) (see id. 7986); violation of due process of law under Articles I and X of the Florida Constitution (Count IV) (see id. 8794); violation of Florida Statute section 509.013 (Count V) (see id. 95102); violation of Florida Statute section 633.202 (Count VI) (see id. 103110); and declaratory relief under 28 U.S.C. section 2201 and Florida Statute section 86.021 (Count VII) (see id. 11112). Plaintiffs seek declaratory and injunctive relief and damages. (See id. 63119). The City moves to dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), or alternatively to strike the Complaint as a sham pleading. (Mot. 1). II. LEGAL STANDARD To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). Although this pleading standard does not require detailed factual allegations, . . . it demands more than an unadorned, the defendant-unlawfully-harmed-me accusation. Id. (quoting Twombly, 550 Case No. 13-23620-CIV-ALTONAGA/Simonton
8 U.S. at 555). Pleadings must contain more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do. Twombly, 550 U.S. at 555. Indeed, only a complaint that states a plausible claim for relief survives a motion to dismiss. Iqbal, 556 U.S. at 679 (citing Twombly, 550 U.S. at 556). To meet this plausibility standard, a plaintiff must plead[] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. Id. at 678 (citing Twombly, 550 U.S. at 556). The mere possibility the defendant acted unlawfully is insufficient to survive a motion to dismiss. Sinaltrainal v. Coca-Cola Co., 578 F.3d 1252, 1261 (11th Cir. 2009) (citing Iqbal, 556 U.S. at 678). When reviewing a motion to dismiss, a court must construe the complaint in the light most favorable to the plaintiff and take the factual allegations therein as true. See Brooks v. Blue Cross & Blue Shield of Fla., Inc., 116 F.3d 1364, 1369 (11th Cir. 1997). The Court is not, however, bound to accept as true a legal conclusion couched as a factual allegation. Dhillon v. Zions First Nat. Bank, 462 F. Appx 880, 883 (11th Cir. 2012) (citation omitted). Likewise, [c]onclusory allegations and unwarranted deductions of fact are not admitted as true, especially when such conclusions are contradicted by exhibits or other disclosed facts. Id. (alteration in original) (footnote call number omitted) (quoting Assoc. Builders, Inc. v. Ala. Power Co., 505 F.2d 97, 100 (5th Cir. 1974)). Although a district court must generally convert a motion to dismiss into a motion for summary judgment if the court considers materials outside the complaint, a court may consider documents attached to the complaint or incorporated by reference without converting the motion into a motion for summary judgment if the documents are: (1) central to the complaint, and (2) the documents authenticity is not in dispute. Day v. Taylor, 400 F.3d 1272, 127576 (11th Cir. Case No. 13-23620-CIV-ALTONAGA/Simonton
9 2005). In particular, the Court may take judicial notice of and consider documents which are public records, [and] that are attached to the motion to dismiss, without converting the motion to dismiss into a motion for summary judgment. Id. Where the documents are in the public record, they are not subject to reasonable dispute because they [are] capable of accurate and ready determination by resort to sources whose accuracy [can]not reasonably be questioned. Horne v. Potter, 392 F. Appx 800, 802 (11th Cir. 2010) (alterations added) (quoting FED. R. EVID. 201(b)). Courts may likewise take [judicial] notice of a another courts order . . . for the limited purpose of recognizing the judicial act that the order represents or the subject matter of that litigation. Id. (alternations in original) (quoting United States v. Jones, 29 F.3d 1549, 1553 (11th Cir. 1994)). III. ANALYSIS The City moves to dismiss all counts in the Complaint, or in the alternative to strike the Complaint as a sham pleading. 4 (See generally Mot.). The City first argues the doctrine of collateral estoppel precludes Plaintiffs from re-litigating issues already adjudicated in prior proceedings. (See id. 712). As to Counts III and IV, respectively, the City contends Plaintiffs were afforded procedural due process under federal and state law and failed to exhaust their administrative remedies. (See id. 15). The City also asserts Plaintiffs do not state plausible claims for a violation of equal protection (Count I) or First Amendment retaliation (Count II). (See id. 1215). According to the City, Plaintiffs state law claims in Counts V and VI, respectively, fail as Plaintiffs misconstrue Florida Statutes, sections 509.032(7) and 633.202(6).
4 The City urges the Court to strike the Complaint as a sham pleading pursuant to the Courts inherent authority. (See generally Mot.). Plaintiffs contention the Complaint is not a sham and was not submitted in bad faith (see Response (Resp.) 17 [ECF No. 24]) is described by Defendant as a fraud upon the Court. (Reply 1 [ECF No. 33]). While the City argues in favor of striking the pleading as a sham, it does not provide any legal support for its argument. Accordingly, the Court only considers whether the Complaint fails to state a claim for relief under Rule 12(b)(6). Case No. 13-23620-CIV-ALTONAGA/Simonton
10 (See id. 1518). Last, the City asserts the equitable relief sought in Count VII is inappropriate where Plaintiffs have adequate remedies at law. (See id. 18). Plaintiffs assert prior, non-final adjudications do not collaterally estop them from bringing the claims in their Complaint. (See Resp. 4). As to Count I, Plaintiffs claim they sufficiently plead a class of one equal protection violation. (See id. 7). Regarding Count II, Plaintiffs insist the Citys enforcement actions were pretextual and in retaliation for Plaintiffs protected free speech. (See id. 1213). As to Counts III and IV, Plaintiffs assert they state claims for substantive due process under federal and state law. (See id. 1315). And Plaintiffs explain Counts V and VI state claims against the City for exceeding its authority by unconstitutionally acting in contravention of Florida statutory law. (See id. 15). As further support for its arguments, the City insists its actions to enforce the City Code were legitimate, rational, and non-discretionary. (See generally Reply). The City explains the Plaintiffs change in use from non-transient to transient rentals unquestionably required [P]laintiffs to apply for and acquire a new CO. (Id. 2). According to the City, the application for a new CO triggered a non-discretionary review by administrative agencies regarding whether the Sadigo complied with governing law[,] including applicable fire and building codes. (Id.). The City cannot permit occupancy where a building lacks required fire safety measures. (Id.). And here City officials concluded the Sadigo did not meet the necessary fire and safety standard . . . [and lacked] a proper fire sprinkler system . . . , [so] a new CO never issued. 5 (Id. 34).
5 While the Citys position is simple enough, the City repeatedly makes statements about the correct statutory interpretation of the City Code, the Florida Building Code, and the Florida Fire Code, among others, without citing any authority regarding those interpretations. The Court will not consider unsupported legal conclusions in the Courts analysis of the Motion. See Solis-Ramirez v. U.S. Dept of Justice, 758 F.2d 1426, 1429 (11th Cir. 1985) (observing a district court is not required to accept as true Case No. 13-23620-CIV-ALTONAGA/Simonton
11 The Court first addresses the collateral estoppel and exhaustion of remedies arguments before turning to Plaintiffs equal protection, First Amendment, and due process claims against the City. Last the Court addresses Plaintiffs Florida statutory claims, followed by the claim for declaratory relief. A. Collateral Estoppel The affirmative defense of collateral estoppel may be raised in a Rule 12(b)(6) motion to dismiss, where the existence of the defense can be judged on the face of the complaint. Haddad v. Dudek, 784 F. Supp. 2d 1308, 1324 (M.D. Fla. 2011) (citing Concordia v. Bendekovic, 693 F.2d 1073, 1075 (11th Cir. 1982); Stephens v. State Farm Fire & Cas. Co., No. 1:03CV3094JTC, 2004 WL 5546250, at *1 (N.D. Ga. June 23, 2004)). Under Florida law, for Plaintiffs claims to be precluded by the doctrine of collateral estoppel: (1) an identical issue, (2) [must have] been fully [and fairly] litigated, (3) by the same parties or their privies, and (4) a final decision [must have] been rendered by a court of competent jurisdiction. Wingard v. Emerald Venture Florida, LLC, 438 F.3d 1288, 1293 (11th Cir. 2006) (alterations added; citations omitted) (quoting Quinn v. Monroe Cnty., 330 F.3d 1320, 1329 (11th Cir. 2003). The litigated issue must also have been a critical and necessary part of the prior determination. Id. (citations omitted). According to the City, the doctrine of collateral estoppel precludes re-litigation of essential issues of fact and law adjudicated in prior proceedings. (See Mot. 11). The City asserts the following underlying issues were previously litigated: (i) whether a new CO was required; (ii) whether operation of the Sadigo for transient use without a new CO was permissible; and (iii) whether it was
[a partys] conclusions of law when considering a Rule 12(b)(6) motion to dismiss (citing Associated Builders, Inc. v. Alabama Power Co., 505 F.2d 97, 100 (5th Cir. 1974))). Case No. 13-23620-CIV-ALTONAGA/Simonton
12 necessary for [P]laintiffs to bring the Sadigo into compliance with Building and Fire Code (through, among other things, installation of a sprinkler system) before [Plaintiffs] could lawfully conduct the transient use.
(Reply 4). Although the City never expressly requests the Court take notice of any records or proceedings, the City cites case law to support its contention that the Court must take judicial notice of the public record related to the instant action. (See Mot. 11). Yet the City largely fails to include as exhibits those public records it seeks the Court to judicially notice. Under Federal Rule of Evidence 201(c)(2), the court must take judicial notice if a party requests it and the court is supplied with the necessary information. FED. R. EVID. 201(C)(2) (emphasis added). The City submits only two exhibits regarding the prior judicial history related to the instant action: the January 10, 2012 Order Denying Petitioners Amended Motion for Emergency Temporary Injunctive Relief (see App. Exs., Ex. 4), and the April 2010 Board of Rules and Appeals decision (see id., Ex. 8). 6
Many of the facts and prior findings relevant to the issue of collateral estoppel are outside the pleadings. Because questions relating to the affirmative defense[] of . . . collateral estoppel require consideration of matters beyond the four corners of the Complaint in this case [and the exhibits attached to the Citys Motion], the Court cannot resolve this disputed issue on a motion to dismiss. Steinberg v. Alpha Fifth Grp., No. 04-60899-CIV, 2008 WL 906270, at *2 n.1 (S.D. Fla. Mar. 31, 2008); see generally Concordia, 693 F.2d 1073. The Court is not in a position to
6 For example, the City references the following public records, but does not provide them: records or minutes of a series of hearings before the State of Floridas Historic Building Task Force; transcript of a multi-day evidentiary hearing resulting in a July 11, 2011 Order by the Eleventh Judicial Circuit Court of Florida; and transcript of an evidentiary hearing held on January 5 and 6, 2012 (corresponding to the January 10, 2012 Order supplied by the City (see App. Exs., Ex. 4)). Case No. 13-23620-CIV-ALTONAGA/Simonton
13 make an informed determination 7 regarding the Citys argument that dismissal is warranted under the doctrine of collateral estoppel. It is not apparent from the face of the Complaint that Plaintiffs are estopped from bringing their claims. To the extent the Citys Motion relies on the doctrine of collateral estoppel, it is denied. B. Equal Protection Plaintiffs claim in Count I the Citys enforcement of the City Code regarding the Sadigos CO and compliance with the Fire Code violated Plaintiffs rights to equal protection under the Fourteenth Amendment. (See Compl. 64). The City argues Plaintiffs fail to sufficiently plead an equal protection violation because they do not identify any comparators who were treated differently from Plaintiffs. (See Mot. 1213). And even assuming Plaintiffs were treated differently from others similarly situated, the Citys actions are supported by a rational basis. (See id. 1314; Reply 56). Plaintiffs explain they bring this claim under a class of one theory. (Resp. 7). Further, Plaintiffs insist the Citys actions were ill-motivated and constitute harassment. (See id. 9). The Equal Protection Clause provides that [n]o State shall make or enforce any law which shall . . . deny to any person within its jurisdiction the equal protection of the laws. U.S. Const., amend. XIV, 1. In Village of Willowbrook v. Olech, 528 U.S. 562, 564 (2000), the Supreme Court explained, [t]he purpose of the equal protection clause of the Fourteenth Amendment is to secure every person within the States jurisdiction against intentional and arbitrary discrimination, whether occasioned by express terms of a statute or by its improper execution through duly constituted agents. Id. (internal quotation marks and citations omitted). As a result, the Supreme Court has recognized successful equal protection claims brought by a
7 The Court likewise cannot make an informed determination regarding the issue of exhaustion of remedies. Case No. 13-23620-CIV-ALTONAGA/Simonton
14 class of one, where the plaintiff alleges that she has been intentionally treated differently from others similarly situated and that there is no rational basis for the difference in treatment. Id. (citations omitted) (recognizing plaintiffs class of one equal protection claim where the defendant village demanded a thirty-three-foot easement to connect plaintiffs property to the municipal water supply, when the village required only a fifteen-foot easement for other property owners). As the Eleventh Circuit has emphasized, [t]o prove a class of one claim, the plaintiff must show (1) that he was treated differently from other similarly situated individuals, and (2) that the defendant unequally applied a facially neutral [regulation] for the purpose of discriminating against him. Leib v. Hillsborough Cnty. Pub. Transp. Comn, 558 F.3d 1301, 1307 (11th Cir. 2009) (citation omitted). Class of one equal protection claims generally require plaintiffs to identify comparators in the pleading in order to show intentional, discriminatory treatment different from others similarly situated. See generally Olech, 528 U.S. 562; Campbell v. Rainbow City, 434 F.3d 1306 (11th Cir. 2006); Glover v. Mabrey, 384 F. Appx 763 (10th Cir. 2010). Indeed, in the context of class of one claims, the similarly situated requirement must be rigorously applied. Leib, 558 F.3d at 1307 (citing Douglas Asphalt Co. v. Qore, Inc., 541 F.3d 1269, 1275 (11th Cir. 2008); Griffin Indus., Inc. v. Irvin, 496 F.3d 1189, 1207 (11th Cir. 2007)). The purpose of the similarly situated requirement is to avoid subject[ing] nearly all state regulatory decisions to constitutional review in federal court and deny[ing] state regulators the critical discretion they need to effectively perform their duties. Leib, 558 F.3d at 1307 (alteration added) (quoting Griffin, 496 F.3d at 1203). And [e]ven in run-of-the-mill discrimination cases, [the Eleventh Circuit has] emphasized that plaintiffs are not permitted simply to rely on broad generalities in identifying a comparator. Id. (alteration added) (quoting Griffin, 496 F.3d at 1204 (analyzing Case No. 13-23620-CIV-ALTONAGA/Simonton
15 whether comparators were prima facie identical in all relevant respects (citation omitted))). 8
The Seventh Circuit, writing extensively on class of one equal protection issues, has developed an exception to the traditional requirement that plaintiffs must identify comparators to state a claim. See Swanson v. City of Chetek, 719 F.3d 780, 784 (7th Cir. 2013). The Seventh Circuit recognizes class of one claims in cases where illegitimate governmental conduct or animus is easily demonstrated[,] but similarly situated individuals are difficult to find. Id. If animus is readily obvious based on treatment received by plaintiff, he does not need to show unequal treatment by comparison to others similarly situated. Id. (finding the defendants animus was readily obvious from the fact that the defendant bore [the plaintiffs] ill will, caused an investigation against [one plaintiff], interrupted meetings of the plaintiffs and building inspectors and angrily informed building inspectors that no permit should be granted); see also Fenje v. Feld, 398 F.3d 620, 628 (7th Cir. 2005) (recognizing a campaign of official harassment driven by malice, vindictiveness, or malignant animosity would state a claim for relief under the Equal Protection Clause) (internal quotation marks and citations omitted). Plaintiffs rely in particular on Geinosky v. City of Chicago, 675 F.3d 743 (7th Cir. 2012). In Geinosky, plaintiffs unequal treatment was obvious from the pattern of deliberate, official harassment that had no conceivable legitimate purpose[,] where the plaintiff received twenty- four bogus parking tickets within one year from the same police unit. Id. at 748 (noting plaintiff
8 The Eleventh Circuit has stated that the similarly situated requirement will be more difficult to establish for class of one cases with multi-dimensional, governmental decision-making over a period of time. Griffin, 496 F.3d at 1203 (involving varied decisionmaking criteria applied in a series of discretionary decisions made over an extended period of time). In Griffin the court explained the equal protection claim must be evaluated in light of the full variety of factors that an objectively reasonable governmental decisionmaker would have found relevant in making the challenged decision. Id.; see also Campbell, 434 F.3d at 1314, 1316 (considering factors relevant to an objective decisionmakers approval of a building project, including development size, impact on the community, zoning variances, and type of approval sought, and observing a similarly situated building project would be prima facie identical in all relevant respects). Case No. 13-23620-CIV-ALTONAGA/Simonton
16 did not need to identify a similarly situated comparator, specifically a person who did not receive twenty-four bogus parking tickets in 2007 and 2008[,] as the general public could serve the same purpose). The Seventh Circuit also observed that even where a plaintiff may need to identify others who are similarly situated, the pleading requirements under Iqbal and Twombly do not require a plaintiff to identify specific comparators in a complaint. Id. at 748 n.3; see also Cahn v. City of Highland Park, No. 11 CV 06082, 2012 WL 4483480, at *4 (N.D. Ill. Sept. 25, 2012) (denying defendants motion to dismiss the equal protection claim after finding plaintiffs allegations of being targeted by the City in a spiteful manner[,] wherein plaintiff was the only individual that Highland Park ha[d] prosecuted[,] were sufficient to plead a class-of-one claim). While much of the Eleventh Circuits case law reiterating the demanding similarly situated standard predates Geinosky, since then, the Eleventh Circuit required in Apothecary Development Corp. v. City of Marco Island, Florida, more than [b]are allegations that others similarly situated were treated differently. 517 F. Appx 890, 892 (11th Cir. 2013) (Plaintiffs complaint baldly asserts that the alleged harassing behavior is being directed at and executed against Plaintiffs and their customers only, and not against similarly situated pharmacies, employees and customers in the Marco Island area . . . . This is insufficient. (internal citation omitted)). Still, since Geinosky, the Eleventh Circuit has not specifically addressed the contention that certain factual scenarios, including actions evincing obvious animus or harassment by a defendant, may not require a plaintiff to identify a comparator to state a claim for unequal treatment at the pleading stage. Even assuming the Eleventh Circuit recognized a class of one claim without the requirement of pleading a similarly situated comparator, the threshold standard for conduct so obviously harassing or malicious is a challenging one. Case No. 13-23620-CIV-ALTONAGA/Simonton
17 Plaintiffs do not identify any comparators in the Complaint and only generally allege the treatment received by Plaintiffs was different from that of others similarly situated. 9 But for Plaintiffs to state a class of one claim, they need to allege at least one similarly situated comparator. 10 While the Seventh Circuits analysis is persuasive, under that Circuits standard Plaintiffs still fail to state an equal protection claim as they have not sufficiently pleaded such obviously harassing or malicious conduct on the Citys part so that unequal treatment may be inferred. See Geinosky, 675 F.3d at 748 (explaining the defendants conduct had no conceivable legitimate purpose); Fenje, 398 F.3d at 628 (requiring plaintiff plead an obvious pattern of deliberate, official harassment driven by malice, vindictiveness, or malignant animosity); see also Swanson, 719 F.3d at 784. Admittedly, Plaintiffs allege a pattern of pretextual regulat[ion] (Compl. 59) motivated by the Citys malice and ill will (id. 57). Plaintiffs claim the numerous notices of violation or cease and desist orders[,] citing the Sadigo for fire safety code violations related to transient occupancy and use (id. 50), constitute an actionable pattern of discriminatory actions by the City (id. 59). But the Sadigos citations and two shutdowns by City officials (see id. 40, 42) over a period of six years, do not sufficiently demonstrate an obvious campaign of malicious harassment against Plaintiffs. Cf. Swanson, 719 F.3d at 785 (explaining the plaintiff only needed to show harassment, yelling, arbitrary denials and frivolous litigation do not normally follow requests for fence permits[,] particularly where defendants hostility and
9 As Plaintiffs fail to satisfy the first prong of identifying similarly situated comparators under the class of one equal protection standard in the Eleventh Circuit, the Court does not consider the second prong as to whether a rational basis existed for the alleged unequal treatment of Plaintiffs. See Griffin, 496 F.3d at 120708. 10 Plaintiffs failure to do so is particularly inexcusable when Plaintiffs could have sought the required information from the City through public records requests under the Florida Public Records Act, chapter 119, Florida Statutes. Case No. 13-23620-CIV-ALTONAGA/Simonton
18 personal hatred were readily apparent from defendants alleged statements and behavior). Moreover, the Citys actions are not arbitrary or irrational on their face, as in Geinosky. Rather, the Citys conduct has a conceivable legitimate purpose to obtain compliance with the City Code and protect the health and safety of the public. Consequently, Plaintiffs have failed to sufficiently state a claim for a violation of their equal protection rights. C. First Amendment Retaliation In Count II, Plaintiffs claim the City violated their rights under the First and Fourteenth Amendments to the U.S. Constitution and seek equitable relief. (See Compl. 72). Plaintiffs contend the Citys enforcement actions were pretextual and undertaken with improper and retaliatory motives, adversely affecting Plaintiffs protected speech. (See Resp. 1213). The City argues Plaintiffs fail to state a claim for First Amendment retaliation as the City acted to properly enforce applicable local laws. (See Mot. 14). The City also insists it acted within its discretion and was not motivated by ill-will, citing the significant lapse in time between Plaintiffs protected conduct and the Citys purported retaliation. (See Reply 7). To state a retaliation claim, a plaintiff must establish: (1) his speech or act was constitutionally protected; (2) the defendants retaliatory conduct adversely affected the protected speech; and (3) there is a causal connection between the retaliatory actions and the adverse effect on speech. Bennett v. Hendrix, 423 F.3d 1247, 1250 (11th Cir. 2005) (citations omitted); see also Abella v. Simon, 522 F. Appx 872, 873 (11th Cir. 2013). A plaintiffs claim depends not on the denial of a constitutional right, but on the harassment [] received for exercising [his] rights. Bennett, 423 F.3d at 1253. Regarding the first prong, the First Amendment protects the rights of [free] speech and to petition for redress. Abella, 522 F. Appx at 873 (citing U.S. Const. amend. I; United Mine Case No. 13-23620-CIV-ALTONAGA/Simonton
19 Workers of Am., Dist. 12 v. Ill. State Bar Assn, 389 U.S. 217, 222 (1967)). Plaintiffs allege they engaged in protected activity by petitioning the City and its elected officials and by publically commenting on their dispute with the City regarding [the] Sadigo . . . . (Compl. 73; see also Resp. 12). Defendants do not challenge Plaintiffs activities constitute protected speech. As to the second prong, a plaintiff suffers adverse action if the defendants allegedly retaliatory conduct would likely deter a person of ordinary firmness from the exercise of First Amendment rights. Bennett, 423 F.3d at 1254 (finding retaliatory acts, including a prolonged and organized campaign of harassment by local police officers[,] where defendants repeatedly followed, pulled over, cited and intimidated plaintiffs, as well as allegedly attempted to obtain arrest warrants against plaintiffs without probable cause and disseminated flyers depicting plaintiffs as criminals); cf. Thompson v. Hall, 426 F. Appx 855, 85960 (11th Cir. 2011) (finding the level of harassment and intimidation alleged, including intimidation of non-parties and allegations against unnamed police deputies who followed plaintiffs and patrolled their neighborhood, would not deter a person of ordinary firmness from engaging in protected speech). In applying the objective test of ordinary firmness, courts liberally construe whether the alleged conduct had an adverse effect, so while [t]he effect on freedom of speech may be small, . . . there is no justification for harassing people for exercising their constitutional rights. Bennett, 423 F.3d at 1254 (alteration in original) (quoting Bart v. Telford, 677 F.2d 622, 625 (7th Cir. 1982)). The adverse effect need not be great in order to be actionable. Id; see also Garcia v. City of Trenton, 348 F.3d 726, 729 (8th Cir. 2003) (explaining the retaliatory issuance of parking tickets totaling $35 in less than two months to punish plaintiff for speaking out would be sufficient to chill the speech of a person of ordinary firmness). Plaintiffs claim the Citys retaliatory conduct would likely deter a person of ordinary Case No. 13-23620-CIV-ALTONAGA/Simonton
20 firmness from exercising free speech, even though Eisenberg himself was not deterred. Specifically, Plaintiffs allege: the City misled Plaintiffs through the code compliance processes (Compl. 2735, 4856); the City repeatedly cited Plaintiffs for code violations (see id. 50); the City told Plaintiffs mortgagee and clients the Sadigo was operating illegally as a hotel (see id. 3639, 43); the City shut down the Sadigo twice, including once during a peak weekend (see id. 4044); and Eisenberg was arrested after his refusal to pay the City a bribe during the second shutdown (see id. 4245; Resp. 13). This conduct, improperly motivated as alleged, would likely be sufficient to deter a person of ordinary firmness, especially as the adverse effect need not be substantial. Regarding the third prong, to establish a causal connection, a plaintiff must show his protected conduct was a motivating factor behind the alleged retaliatory misconduct. See Bennett, 423 F.3d at 1250. Plaintiff must identify a sequence of events from which a retaliatory motive can be inferred[,] notwithstanding other non-retaliatory motives the defendant may harbor. Lippman v. City of Miami, 719 F. Supp. 2d 1370, 1374 (S.D. Fla. 2010) (footnote call number omitted); see also id. n.4. To determine if the protected conduct is a motivating factor, courts rely on the burden- shifting formula set forth in Mt. Healthy City School District Board of Education v. Doyle, 429 U.S. 274, 287 (1977); see also Smith v. Mosley, 532 F.3d 1270, 1278 (11th Cir. 2008) (resolving the subjective motivation issue pursuant to Mt. Healthy). Under the Mt. Healthy formula, [o]nce the plaintiff has met his burden of establishing that his protected conduct was a motivating factor behind any harm, the burden of production shifts to the defendant. If the defendant can show that he would have taken the same action in the absence of the protected activity, he is entitled to prevail . . . on summary judgment.
Smith, 532 F.3d at 1278 (alterations added; footnote call number omitted) (quoting Thaddeus-X Case No. 13-23620-CIV-ALTONAGA/Simonton
21 v. Blatter, 175 F.3d 378, 399 (6th Cir. 1999) (citing Mt. Healthy, 429 U.S. at 287)). In conjunction with the burden-shifting formula, courts also consider the temporal proximity between a plaintiffs exercise of free speech and the adverse effect in gauging the causal connection. See Ranize v. Town of Lady Lake, Fla., No. 5:11cv646Oc32TBS, 2012 WL 4856749, at *3 (M.D. Fla. Oct. 12, 2012). Significantly, this burden-shifting analysis is not appropriate at the motion to dismiss phase. Johnson v. Conway, No. 1:13-CV-0524-RWS, 2013 WL 5493380, at *4 n.3 (N.D. Ga. Sept. 30, 2013); see generally OBryant v. Finch, 637 F.3d 1207 (11th Cir. 2011) (decided on summary judgment); Smith, 532 F.3d 1270 (same); Thaddeus-X, 175 F.3d 378 (same). A determination as to whether a defendant would have taken the same action in the absence of the protected activity is premature when the parties have not conducted discovery. See Johnson, 2013 WL 5493380, at *4 n.3 (explaining discovery may reveal whether defendants conduct conformed with the county jails general policy). As a result, the Court addresses only whether Plaintiffs have met their burden in alleging their protected conduct was a motivating factor, and not whether the City has shown under the burden-shifting formula it would have taken the same actions absent Plaintiffs protected conduct. Plaintiffs must allege a causal connection between the adverse action and the exercise of free speech to establish Plaintiffs protected conduct was a motivating factor. As the City observes, a substantial temporal gap exists between Plaintiffs protected speech and when the alleged misconduct by the City commenced. (See Mot. 1415). It was not until late 2006, when Plaintiffs began renting units to transient guests, that the City instructed Plaintiffs to apply for a new CO to operate the Sadigo as a hotel. Well before this, in 1993, Eisenberg lost a bid for a City proposal, and in 1995, Eisenberg challenged a City development project. (See Compl. Case No. 13-23620-CIV-ALTONAGA/Simonton
22 1011). This exercise of Plaintiffs First Amendment rights is exceedingly attenuated from the time the City required the Sadigo obtain a new CO. While Plaintiffs allegations regarding events more than ten years before the Citys alleged retaliatory conduct fail to persuade, the allegations concerning more recent conduct are somewhat more compelling. Plaintiffs allege they, along with unnamed parties, made complaints about an abandoned hotel between 2004 and 2009. (See id. 20). The Complaint contains few details about the nature and frequency of these complaints between 2004 and 2009 and to whom they were made. These allegations, although nearer in time, are relatively bare. Without more factual detail, the Court cannot assess whether a sufficient causal connection and thereby a retaliatory motive can be inferred prior to the Citys requirement that the Sadigo apply for a new CO and undergo review as a new hotel for compliance with local and state laws. However, Plaintiffs allegations from 2009 and later identify protected conduct supporting a causal connection. In 2009, Eisenberg complained to the Citys Zoning Boarding regarding the same abandoned hotel; he later withdrew his objection after the City addressed the neighborhoods concerns with the building. (See id.). Then, on January 19, 2011, Plaintiffs challenged the classification of the Sadigo as a new hotel at a City Commission meeting. (See id. 29). After Plaintiffs complained at the January 19, 2011 meeting, the City told Plaintiffs mortgagee the Sadigo was operating illegally, and on January 21, 2011, the mortgagee decided not to renew the loan. (See id. 3638). Plaintiffs also assert their refusal to pay the City a bribe was a motivating factor behind Eisenbergs arrest during the Citys second shutdown of the Sadigo. (See id. 4245; Resp. 13). A retaliatory motive can be inferred from the Citys alleged misconduct, which continued from roughly 2006 to 2012. See Lippman, 719 F. Supp. 2d at 1374. While the Complaint does Case No. 13-23620-CIV-ALTONAGA/Simonton
23 not contain many facts particularly prior to 2006 illustrating the City acted in retaliation to Plaintiffs exercise of free speech, the allegations taken as a whole are sufficient to infer a retaliatory motive. Therefore, the Motion is denied as to this count. D. Due Process Plaintiffs allege federal and state law claims for declaratory and injunctive relief and seek damages for due process violations (Counts III and IV, respectively). (See Compl. 7994). In the Motion the City argues Plaintiffs were afforded procedural due process under federal and state law and failed to exhaust their administrative remedies. (See Mot. 15). Plaintiffs clarify they are not making procedural claims, and assert they sufficiently allege substantive due process claims instead. (See Resp. 1314). To state a claim for a violation of substantive due process under 42 U.S.C. section 1983, a plaintiff must allege: (1) a deprivation of a constitutionally protected interest, and (2) such deprivation was the result of an abuse of governmental power sufficient to raise an ordinary tort to the stature of a constitutional violation. Executive 100, Inc. v. Martin Cnty., 922 F.2d 1536, 1541 (11th Cir. 1991) (citation omitted). Deprivations of constitutionally protected interests may include diminutions in property value, see Parker v. Leon Cnty., No. TCA 91-40133-WS, 1992 WL 209626, at *6 (N.D. Fla. Mar. 18, 1992) (citing Executive 100, 922 F.2d at 1541); and interference with the goodwill of plaintiffs business or injury to plaintiffs business without due process, see Marrero v. Hialeah, 625 F.2d 499, 515 (5th Cir. 1980). Florida law recognizes a lawful business, including tangible property, monetary investments, and business reputation, in every sense of the word[, as] property . . . that is entitled to protection from all unlawful Case No. 13-23620-CIV-ALTONAGA/Simonton
24 interference. 11 Id. at 514 (internal quotation marks and citation omitted); see also Espanola Way Corp. v. Meyerson, 690 F.2d 827 (11th Cir. 1982) (finding plaintiff stated a section 1983 claim where city commissioners harassed hotel to drive it out of business, effecting a taking of plaintiffs hotel without due process, because Florida law considers business reputation/good will a constitutionally protected interest). A deprivation is of constitutional stature if it is undertaken for improper motive and by means that were pretextual, arbitrary and capricious, and without rational basis. Executive 100, 922 F.2d at 1541 (noting, in a zoning context, the issue is whether the defendants action bore any substantial relation to the public welfare) (citation omitted). State law substantive due process claims must satisfy the same standard. See Gardens Country Club, Inc. v. Palm Beach Cnty., 712 So. 2d 398, 403 (Fla. 4th DCA 1998) (citation omitted). Plaintiffs allegations satisfy the first prong. Plaintiffs were denied their constitutionally protected right to utilize their property and engage in a legitimate rental business at the Sadigo. (See Resp. 14; Compl. 2225, 3545, 8186). The City does not contest Plaintiffs have a constitutionally protected property and business interest in the Sadigo. Plaintiffs allege they had to refinance the Sadigo at enormous additional cost after the mortgagee decided not to renew the loan upon being informed the Sadigo was operating illegally as a hotel. (See Compl. 37). Plaintiffs also lost the Art Basel Foundation as a business client after the City informed the Foundation the Sadigo was operating illegally. (See id. 39). Regarding the second prong, the Citys improper and pretextual motivations may be inferred from the allegations of City corruption, as well as the sequence of events after 2006,
11 Under Florida law, a plaintiff may recover actual damages for defendants disparaging comments about the plaintiffs business[, including comments intended] . . . to prevent others from dealing with the plaintiff. Marrero, 625 F.2d at 515 (citations omitted). Case No. 13-23620-CIV-ALTONAGA/Simonton
25 which when viewed in the light most favorable to Plaintiffs, tend to show the City specifically targeted the Sadigo. Not only did the Citys second shutdown of the Sadigo coincide with peak rentals during the Art Basel Festival (see id. 1819), but Eisenberg was arrested after refusing to pay a bribe to the Citys then lead Code Compliance Officer (see id. 42, 4445). Based on these allegations, it is plausible the Citys actions were undertaken with an improper motive and were an abuse of discretion. Thus, Plaintiffs state a substantive due process claim for diminution in value, injury to the Sadigos reputation, and interference with operating a legitimate business, resulting from the Citys repeated cease and desist orders, targeting of the Sadigos clients, and two forced shutdowns of the Sadigo. E. State Law Claims In Counts V and VI, Plaintiffs seek declaratory and injunctive relief for violations of Florida Statutes sections 509.032 12 and 633.202, respectively. Plaintiffs request the Court find that the City is liable for violating the Plaintiffs rights under section[s] 509.032 [and 633.202], Florida Statutes. (Compl. 102, 110). The City makes three arguments in support of dismissal of these state law claims: (1) City officials are not preempted from inspecting [P]laintiffs property or enforcing local and state ordinances requiring [P]laintiffs to comply with applicable fire and safety codes (Mot. 16); (2) Plaintiffs are not entitled to a private right of action under the statutes (see id. 17); and (3) Plaintiffs failed to exhaust their available administrative remedies (see id. 18). In response, Plaintiffs assert the City exceeded its authority because it unconstitutionally acted in contravention of and in avoidance of state law[,] namely Florida Statutes sections 509.032 and 633.202. (See Resp. 15). Moreover, Plaintiffs clarify they seek only equitable relief and do not make any claims requiring a private right of action. (See id.
12 Plaintiffs have clarified they plead a violation of section 509.032, not 509.13 as stated in the caption of Count V. (See Resp. 15; Compl. 9597). Case No. 13-23620-CIV-ALTONAGA/Simonton
26 1617). Finally, Plaintiffs insist the City has not demonstrated other administrative remedies are available for Plaintiffs to pursue regarding violations of these state statutes. (See id. 17). It is unclear precisely what claims Plaintiffs attempt to bring in Counts V and VI. The titles given to Counts V and VI reference violations by the City of both statutes, and Plaintiffs Response characterizes the claims as requests for equitable relief from the Citys violations of state statutes, namely sections 509.032 and 633.202. (Resp. 15). The Court first reviews Florida Statute section 509.032(7), followed by section 633.202(6). 1. Florida Statute Section 509.032(7) Florida Statute section 509.032(7) regarding Public Lodging and Public Food Service Establishments states in part: (7) Preemption authority (a) The regulation of public lodging establishments and public food service establishments, including, but not limited to, sanitation standards, inspections, training and testing of personnel, and matters related to the nutritional content and marketing of foods offered in such establishments, is preempted to the state. This paragraph does not preempt the authority of a local government or local enforcement district to conduct inspections of public lodging and public food service establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code, pursuant to ss. 553.80 and 633.206.
(b) A local law, ordinance, or regulation may not restrict the use of vacation rentals, prohibit vacation rentals, or regulate vacation rentals based solely on their classification, use, or occupancy. . . .
FLA. STAT. 509.032. Plaintiffs allege the City applied, interpreted[,] and enforced its Code and [] unwritten policies and practices [against the] Sadigo . . . to regulate it as a public lodging establishment . . . [and] restrict the use of vacation rentals . . . based solely on [] classification, use, or occupancy in contravention of section 509.032. (Compl. 99). Plaintiffs reliance on subsection 509.032(7)(b), however, is misplaced. This subsection refers to vacation rentals, which the Case No. 13-23620-CIV-ALTONAGA/Simonton
27 statute defines as any unit or group of units in a condominium, cooperative, or timeshare plan or any individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling unit that is also a transient public lodging establishment. FLA. STAT. 509.242(1)(c). While the Sadigos status as an apartment or a hotel may be at issue, Plaintiffs do not allege the Sadigo is condominium, cooperative, or timeshare plan, nor do they allege the Sadigo is an individually or collectively owned single-family or multi-family housing that is also a transient public lodging establishment. Yet, inexplicably, the Complaint states the Sadigo offers vacation rentals, as defined by chapter 509, Florida Statutes. (Compl. 98). Nothing in the Complaint supports this allegation. The Courts duty to accept the facts in the [C]omplaint as true does not require [the Court] to ignore specific factual details of the pleading in favor of general or conclusory allegations. Griffin, 496 F.3d at 120506. Based on the plain language of the statute and the facts alleged, the Sadigo cannot be classified as a vacation rental. As subsection (b) is inapplicable to the Sadigo, the Court does not consider the parties arguments relating to that subsection. In Count V, Plaintiffs also state regulation of public lodging establishments is preempted to the state. (Compl. 97 (citing FLA. STAT. 509.032(7))). Plaintiffs further explain the City acted in contravention of and in avoidance of (Resp. 15) the statute by unconstitutionally exceed[ing] its authority to Plaintiffs detriment (id. 1516). The Court construes Plaintiffs arguments as clarifying Count V states a claim for preemption. The City contends Plaintiffs same statutory allegations were raised and rejected by both the Circuit Court and the Third District Court of Appeal in [P]laintiffs previous litigation against the City. (Mot. 1516). Again, the City has not provided the necessary documentation for the Court to Case No. 13-23620-CIV-ALTONAGA/Simonton
28 review to make this determination. The parties also do not cite any legal authority other than the statute itself on the issue of preemption. In determining whether local laws and the actions of local government are in contravention of a state statute, courts look to whether the statute expressly preempts that area. See Tallahassee Meml Regl Med. Ctr., Inc. v. Tallahassee Med. Ctr., Inc., 681 So. 2d 826, 831 (Fla. 1st DCA 1996); see also Shands Teaching Hosp. & Clinics, Inc. v. Mercury Ins. Co. of Fla., 97 So. 3d 204, 210 (Fla. 2012) (In construing a statute, [courts] should give effect to legislative intent, which is discovered primarily through the plain language of the statute. (citing BellSouth Telecomms., Inc. v. Meeks, 863 So. 2d 287, 289 (Fla. 2003))). [W]here the Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the Legislature intended. Tallahassee Meml Regl Med. Ctr., Inc., 681 So. 2d at 831. If the statutory intent is not expressly clear from the statute, courts may analyze the statutes implied intent. See id. (Implied preemption should be found to exist only in cases where the legislative scheme is so pervasive as to evidence an intent to preempt the particular area, and where strong public policy reasons exist for finding such an area to be preempted by the Legislature. (citations omitted)). Here, the statute expressly states it does not preempt the authority of a local government or local enforcement district to conduct inspections of public lodging and public food service establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code, pursuant to [sections] 553.80 and 633.206. 13 FLA. STAT. 509.032(7)(a). The legislative
13 Under the statute, public lodging establishment includes both transient and non-transient establishments comprised of any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests. FLA. STAT. 509.013(4)(a). A transient rental is one rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests. Id. 509.013(4)(a)(1). A nontransient rental is rented to guests for periods of at least Case No. 13-23620-CIV-ALTONAGA/Simonton
29 intent is clear from the face of the statute. While the statute generally preempts regulation of public housing establishments, it exempts certain regulation by local government. The statute does not preempt the City from conducting inspections of public lodging establishments such as the Sadigo 14 to ensure compliance with the Florida Building Code and Fire Code. As a result, Plaintiffs do not state a claim for preemption under section 509.032. 2. Florida Statute Section 633.202(6) The second statute Plaintiffs cite is Florida Statute section 633.202 regarding the Florida Fire Prevention Code. That law provides: (6) The Florida Fire Prevention Code does not apply to, and no code enforcement action shall be brought with respect to, zoning requirements or land use requirements. Additionally, a local code enforcement agency may not administer or enforce the Florida Fire Prevention Code to prevent the siting of any publicly owned facility, including, but not limited to, correctional facilities, juvenile justice facilities, or state universities, community colleges, or public education facilities. This section shall not be construed to prohibit local government from imposing built-in fire protection systems or fire-related infrastructure requirements needed to properly protect the intended facility.
FLA. STAT. 633.202(6). In Count VI, Plaintiffs allege the City impermissibly enforces the City Code, making determinations related to particular land uses (including uses as hotels or apartments, as well as transient or non-transient uses) in contravention of the Fire Code section 633.202. (See Compl. 10507). As stated, the statute plainly provides, [t]he Florida Fire Prevention Code does not apply to, and no code enforcement action shall be brought with respect to, zoning requirements or land use requirements. FLA. STAT. 633.202(6). The statute expressly exempts zoning and
30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests for periods of at least 30 days or 1 calendar month. Id. 509.013(4)(a)(2). 14 Plaintiffs allege the Sadigo is a public lodging establishment holding a valid license issued under chapter 509, Florida Statutes, by the Department of Business and Professional Regulation. (Compl. 98). Case No. 13-23620-CIV-ALTONAGA/Simonton
30 land use requirements. The Fire Code does not define land use requirements, and Plaintiffs employ a liberal construction of the term. Based on a plain reading of the statute, the Court finds Plaintiffs argument unpersuasive. In the field of land use regulation, land use encompasses: (1) the type of use, such as whether it will be used for agricultural, commercial, industrial, or residential purposes; (2) the density of use, manifested in concerns over the height, width, bulk, or environmental impact of the physical structures on the land; (3) the aesthetic impact of the use, which may include the design and placement of structures on the land; and (4) the effect of the particular use of the land on the cultural and social values of the community . . . . Land-use Regulation, BLACKS LAW DICTIONARY (9th ed. 2009) (quoting Peter W. Salsich Jr., Land Use Regulation, 1 (1991)). Furthermore, section (6) utilizes the term land use, rather than the terms use or occupancy, terms found in other provisions of the Fire Code. FLA. STAT. 633.302(6); see generally id. 633.206(3) (occupancy levels, specialized use); id. 633.218(3)(a) (construction or renovation, alteration, or change of occupancy). The Court is not convinced this statutory exemption applies as Plaintiffs claim it does, because no zoning or land use requirements are actually in question. 15
More importantly, the last sentence in section (6) provides, [t]his section shall not be construed to prohibit local government from imposing built-in fire protection systems or fire- related infrastructure requirements needed to properly protect the intended facility. Id. 633.202(6). To the extent Plaintiffs claim preemption regarding Florida Statute section 633.202
15 In Count VI, Plaintiffs attempt to claim the City impermissibly applied the Fire Code when making determinations regarding zoning and land use (see Compl. 10607), areas exempted from Code enforcement. Plaintiffs argument regarding zoning makes little sense as the Sadigos zoning is not in question. Plaintiffs allege the Sadigo is located in an RM-2 zoning district (see id. 23), and transient rentals are permitted in apartments, apartment hotels, and hotels in RM-2 zoning districts (see id. 24). Case No. 13-23620-CIV-ALTONAGA/Simonton
31 in Count VI of the Complaint, the statute expressly states local government has the authority to regulate built-in fire protection systems or fire-related infrastructure requirements. Likewise, the Florida legislature intended the Fire Code to be interpreted by fire officials and local enforcement agencies in a manner that reasonably and cost-effectively protects the public safety, health, and welfare . . . . Id. 633.212. On a plain reading of both statutes, Plaintiffs have failed to state claims for preemption under sections 509.032 and 633.202. As Plaintiffs do not state any claims under Florida law upon which relief can be granted, the Court need not address the type of equitable relief Plaintiffs seek in the Complaint or the Citys arguments regarding a private cause of action or injunctive relief. F. Declaratory Judgment In Count VII, Plaintiffs seek equitable relief pursuant to 28 U.S.C. section 2201 and Florida Statute section 86.021 in the form of a declaratory judgment construing the parties rights and obligations. (See Compl. 11119). Although the City does not comment on whether Plaintiffs are entitled to declaratory relief (see Mot. 18; Reply 910), in Count VII, Plaintiffs fail to allege a separate cause of action, and accordingly, do not state a claim upon which independent relief can be granted. The equitable relief Plaintiffs seek is a remedy, not a separate cause of action. See Perret v. Wyndham Vacation Resorts, Inc., 889 F. Supp. 2d 1333, 1346 (S.D. Fla. 2012) (dismissing count pleading injunctive and declaratory relief for failure to state a separate cause of action); Tara Prods., Inc. v. Hollywood Gadgets, Inc., No. 09-CV-61436, 2010 WL 1531489, at *10 (S.D. Fla. Apr. 16, 2010) (dismissing count pleading remedy of equitable lien for failure to state separate cause of action); see also Alabama v. U.S. Army Corps of Engrs, 424 F.3d 1117, 1127 (11th Cir. 2005) ([A]ny motion or suit for either a preliminary or permanent injunction must be Case No. 13-23620-CIV-ALTONAGA/Simonton
32 based upon a cause of action . . . There is no such thing as a suit for a traditional injunction in the abstract.) (internal quotation marks and citation omitted). Moreover, [A] court should not entertain an action for declaratory relief when the issues are properly raised in other counts of the pleadings and are already before the court. Perret, 889 F. Supp. 2d at 1346 (citation omitted). Plaintiffs already seek equitable relief in the other counts of the Complaint. Accordingly, Count VII is dismissed. IV. CONCLUSION For the foregoing reasons, it is ORDERED AND ADJUDGED that Defendant, the City of Miami Beachs Motion to Dismiss [ECF No. 16] is GRANTED in part and DENIED in part. Counts I, V, VI, and VII are DISMISSED. DONE AND ORDERED in Miami, Florida this 3rd day of March, 2014.
__________________________________ CECILIA M. ALTONAGA UNITED STATES DISTRICT JUDGE cc: counsel of record Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 1 of 28 IN THE UNITED STATES COURT SOUTHERN DISTRICT OF FLORIDA ROD EISENBERG, and EISENBERG DEVELOPMENT CORP., aFlorida Corporation, d/b/a SADIGO COURT APARTMENT HOTEL, Case No.: Plaintiffs, vs. CITY OF MIAMI BEACH, Defendant, COMPLAINT Plaintiffs, Rod Eisenberg andEisenberg Development Corp. ("Eisenberg Development"), by andthrough theundersigned counsel, hereby suethe City of Miami Beach ("City"), aFlorida municipal corporation, Defendant, andallege as follows: The Parties, J urisdiction, and Venue 1. Eisenberg Development is a Florida corporation, d/b/a Sadigo Court Apartment Hotel, with its principal placeof business intheCity, at 334 20th Street, Miami Beach, Florida. 2. Rod Eisenberg isthepresident of Eisenberg Development. 3. TheCity isaFloridamunicipal corporation. 4. This is anaction for damages and declaratory and injunctive relief with respect to thePlaintiffs' real property andcivil rights. This Court has original andsupplemental jurisdiction pursuant to 28V.S.C. sections 1331, 1343and 1367, and 42V.s.c. sections 1983and 1988. 5. Venue lies in this Court pursuant to 28 V.S.C. section 1391(b) because the real property that is the subject of this action is located within the boundaries of the Miami Division of theSouthern District of Florida. Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 2 of 28 TheSadigoCourt Property 6. Eisenberg Development owns and operates the historic Sadigo Court Apartment Hotel ("Sadigo Court"). Built in 1936, Sadigo Court is a"contributing historic structure" in the City's Museum Historic District, established to protect andpreserve theCity's Art Deco District. 7. TheArt Deco District was developed during and following the Great Depression, and is known worldwide today as South Beach. This area was listed on theNational Register of Historic Places in 1979 as the largest collection of Art Deco architecture in the world. By that time, however, much of theareahadbecome blighted andcrime-ridden. 8. Committing to the redevelopment and improvement of the Art Deco District, Mr. Eisenberg and his family pooled their resources and, over nine months in the late 1980s, purchased four apartment buildings, including Sadigo Court. They would spend approximately $3.5million infirst purchasing andthen renovating thesebuildings. 9. Plaintiffs acquired Sadigo Court in 1988 for $725,000. At that time, the neighborhood was so blighted that the intersection one block away was known as "Crack Comer." Since then, the Plaintiffs renovated Sadigo Court and made significant investments of both time and money inefforts to revitalize theneighborhood. TheCity's Culture of Corruption Unjustly Ensnares Mr. Eisenberg 10. In 1993, Mr. Eisenberg uncovered conuption inthe City's government. In 1993, the City announced plans to lease space in the Old City Hail and publically solicited bids. Mr. Eisenberg and the Miami Design Preservation League submitted abid, as did acompetitor. The City rejected Mr. Eisenberg's bidwithout even considering it andthen declared thecompetitor to bethe sole-and winning-bidder. 2 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 3 of 28 11. Mr. Eisenberg sued the City to force reopening of the bidding process so his bid would be considered. During the course of the litigation, he discovered that the City was giving thewinning bidder thousands of dollars in free rent inthe Old City Hall, during thependency of the bid protest. He also discovered that a City commissioner had received what amounted to an illegal brokerage commission ona$10million real estatetransaction. Inthat transaction, theCity purchased a 10-acre parcel that the City commissioner, his son, and the City attorney held a mortgage on, which was in default. Most of that commission was paid to the City commissioner's son, who then gave a large gift to his father, the City commissioner. Mr. Eisenberg informed the media of his discoveries describing themas reflective of a corrupt City "old-boy network." 12. As aresult of Mr. Eisenberg's disclosures, a scandal ensued which ultimately led to the City manager resigning, and the City attorney being forced out. The State Attorney's public corruption prosecutor concluded that there was insufficient evidence to bring criminal charges. However, the Florida Department of Business and Professional Licensing subsequently brought an eleven-count administrative complaint against the City commissioner's son, his son's company, andthewinning bidder to thepublic bid Mr. Eisenberg challenged, alleging kickbacks and illegal profits on the real estate transaction. The complaint was settled with winning bidder agreeing topay fines. 13. In 1995, Mr. Eisenberg challenged the City's and Miami-Dade County's creation of a redevelopment area related to the Miami Beach Convention Center. When City officials were interviewed about Mr. Eisenberg's claims, rather than comment onthemerits, they accused Mr. Eisenberg of being vengeful after losing his previous lawsuits related to the bid protest case. Mr. Eisenberg, however, had merely argued that even though the area was undergoing an 3 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10/08/2013 Page 4 of 28 economic resurgence, the City's finding that the area was blighted was pretextual and a scheme tousethepower of tax-increment financing for unnecessary "redevelopment" purposes. The City's Culture of Corruption Continues 14. The City's culture of corruption would continue. In 2006, a City electrical inspector was arrested for soliciting bribes. Hepleaded guilty and servedjail time. 15. In 2008, aCity fire protection analyst was fired after alerting his superiors of his suspicions that building renovations were being purposely undervalued to lower permitting fees inexchange for kickbacks. 16. Also in 2008, aCity planner, aCity building plans examiner, and aCity building inspector werecaught accepting bribes. All three plead guilty and servedjail time. 17. In 2012, the City's procurement director, Gus Lopez, was arrested and charged with 63 felony counts, ranging fromracketeering to bid-tampering to illegal compensation. Mr. Lopez had been heading the City's search for developer to carry out a$1.1 billion renovation of theMiami Beach Convention Center. 18. Also in 2012, seven City code compliance and fire department inspectors were arrested by theFederal Bureau of Investigation for extorting abusiness owner by demanding and then accepting bribes in J une 2011 to forego City code enforcement inspections and fines. All seven plead guilty to federal crimes. Inthewakeof this scandal, theCity manager resigned. 19. Oneof these inspectors, J oseAlberto, was theCity's lead code compliance officer responsible for managing and overseeing all Miami Beach code compliance officers. Hepleaded guilty andwas sentenced to aprison termof more than four years. 20. From 2004 through 2009, the Plaintiffs and others in the neighborhood made many complaints about the health and safety risks and code compliance violations of a 4 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 5 of 28 neighboring building that was an abandoned hotel. The City investigated some of these complaints but never took action to resolve the problems with the building. In 2009, Mr. Eisenberg pleaded with the City's Zoning Board Of Adjustment to deny the building owner's request for aoneyear extension to begin construction toresolve its code violations. TheBoard of Adjustment did not grant the extension until the property owner promised to properly board up and clean up all the loose debris from building. Once Mr. Eisenberg saw the work being performed inatimely fashion hewithdrew his objection, andthe Board approved therequest. 21. During this same general time period, and as is more particularly described hereafter, Plaintiffs were subjected to arbitrary, malicious, and intentional discrimination by various City code compliance and fire department officials and inspectors. including Mr. Alberto. The City Arbitrarily and Maliciously Deems the Historic Sadigo Court aHotel to Prevent the Plaintiffs from Renting Its Apartments to Transient Guests 22. Sadigo Court opened in 1936as anapartment with transient rentals andcontinued operating in this fashion for many years thereafter. The City never objected to this practice. Sadigo Court's original City certificates of useand occupancy were for anapartment and Sadigo Court has always maintained this status. 23. Sadigo Court is located in an RM-2 zoning district, where the "main permitted uses" include apartments, apartment hotels, and hotels. City of Miami Beach Land Development Code ("Code") 142-212. The main differences between apartments and hotels are that apartments must include cooking facilities and hotels are only intended to be occupied by transient residents. See Code 114-1. 5 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 6 of 28 24. Under the Code, transient rentals areallowed inapartments, apartment hotels, and hotels in RM-2 and other zoning districts. Therefore, Plaintiffs are entitled, as amatter of right under theCity's Code, to rent Sadigo Court's apartments to transient guests. 25. In 2006, after renting on an annual basis for a period of time, the Plaintiffs resumed transient rentals of rooms in Sadigo Court. 26. Before resuming transient rentals, Sadigo Court obtained a state transient public lodging establishment license from the Florida Department of Business and Professional Regulation's Division of Hotels and Restaurants, which preemptively regulates public lodging establishments across the state. Sadigo Court at first mistakenly was licensed as ahotel; later the mistake was resolved, andtoday Sadigo Court is licensed as atransient apartment. 27. Before resuming transient rentals, Plaintiffs also verified with the City that transient rentals of its apartments were legally permissible by confirming that the zoning district and certificates of use and occupancy allowed transient rentals. Plaintiffs also applied for and were granted aCity Resort Tax Registration Certificate, which is required for transient rental of hotel andapartment units (defined asrentals of six months or less). Code 102-306. 28. Since 2006, the Plaintiffs have collected and paid the appropriate resort taxes to theCity, County and Stateeach month as required by law. These transient rental taxes arebased on the amounts Sadigo collects monthly fromits guests and include a3% City resort tax, a 3% Miami-Dade County resort tax, and a 7% state resort tax. The City, County, and State have consistently accepted these payments. 29. Inlate2006, thetransient guests began to arrive. Thereafter, Plaintiffs, pursuant to a City-approved and issued building permit, constructed a cold food preparation area in Sadigo Court to serve their transient guests in its interior courtyard, which cannot be seen from the 6 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 7 of 28 street. After construction was completed and signed off on by the City, the City informed Plaintiffs that it was a"hotel" not an"apartment" because it rented apartments to transient guests and that the preparation area was actually a "restaurant," which only a hotel could have in the RM-2 zoning district. Therefore, the City said Sadigo Court was required to obtain a new certificate of use and occupancy as a"hotel." 30. The City has not deemed other similarly situated apartment buildings tobehotels, nor has the City required the owners and operators of those apartment buildings to obtain anew certificate of occupancy as a"hotel" before renting their apartments to transient guests. Rather, the City has permitted such similarly situated apartments buildings to rent to transient guests without obtaining acertificate of occupancy as a"hotel." The City Arbitrarily and Maliciously Deems the Historic Sadigo Court aNew Hotel to Prevent Plaintiffs from Renting Its Apartments to Transient Guests By Imposing Unreasonable and Unnecessary Fire Protection Renovation Reguirements 31. The Plaintiffs complied with the City's request, believing their only option to engage intransient rental activity at Sadigo Court was to apply for acertificate of occupancy as a "hotel." 32. After Sadigo Court applied for a certificate of occupancy as a "hotel", the City then arbitrarily and maliciously declared that, under its fire protection standards, Sadigo Court was a "new" "hotel" that must meet the fire protection standards applicable to brand "new" "hotel" structures. 33. In doing so, the City arbitrarily, maliciously, and knowingly refused to acknowledge what it knew to betrue, namely: (1) that Sadigo Court was ahistoric structure in a historic district and, as such, was not required to meet fire protection standards applicable to brand "new" structures; (2) that, as ahistoric structure, Sadigo Court was allowed to prove that its fire protection methods provide a reasonable level of life safety to its occupants; (3) that 7 L- _ Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 8 of 28 Sadigo Court complied with said standards; and (4) that Sadigo Court did not present an unreasonable fire safety risk to its occupants or to the public in generaL The City was and is awareof these facts because it hasbeen presented with competent substantial evidence, including expert reports, establishing these facts on various occasions. 34. Instead of acknowledging these facts, the City arbitrarily and maliciously ignored them and arbitrarily and maliciously required Plaintiffs to comply with fire safety regulations applicable to brand "new" hotels knowing that, by doing so, it was imposing anunnecessary and severefinancial burden on Plaintiffs' ability to continue renting to transient guests. 35. The City has not deemed other similarly situated historic apartment structures to be subject to the fire safety requirements applicable to brand "new" structures; nor has the City required the owners and operators of other similarly situated historic apartment structures to make the same fire protection improvements that brand "new" hotel structures are required to make. Rather, the City has permitted such similarly situated apartments to engage in transient rental actions without having to comply with the fire protection standards applicable to brand "new" hotel structures. The City's Culture of Corruption Unjustly Ensnares Mr. Eisenberg Again 36. Sadigo Court attempted-repeatedly and unsuccessfully-to convince City staff that Sadigo court should not be treated as a "new hotel" and that instead it should be treated at worst as a historic structure that satisfied the fire protection standards applicable to historic structures. Finally, Plaintiffs appeared at a City Commission meeting on J anuary 19, 2011, seeking relief fromthe City officials' arbitrary actions fromtheMayor andCity Commission and explaining what they felt was unfair treatment they had suffered at thehands of City staff. At this meeting, Plaintiffs submitted a letter and materials detailing why Sadigo Court should not be 8 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 9 of 28 treated as a"new hotel" andhow it met fire safety requirements applicable to historic structures. TheMayor, City Commissioners, City Manager, and City Attorney were indifferent to Plaintiffs' claims. Indeed, theCity FireChief took great offense to Plaintiffs' claims of unfair treatment. 37. Two days later, on J anuary 21, 2011, Sadigo Court's mortgagee advised Plaintiffs that it would not renew its loan on Sadigo Court, despite the fact that just months earlier, the mortgagee had encouraged the Plaintiffs to renew the loan. Consequently, the Plaintiffs were forced to refinance Sadigo Court at enormous unnecessary additional cost and at ahigher interest ratethan they otherwise would have. 38. Based on information and belief, the City Fire Marshal had told Sadigo Court's mortgagee that thePlaintiffs wereoperating Sadigo Court as anillegal hotel. 39. Soonthereafter, inApril 2011, the City told thePlaintiffs' longstanding client, the Art Basel Foundation, that theSadigo Court was being operated as anillegal hotel. Traditionally, the Foundation had rented about 200 room-nights per year. After being told by a City official that Plaintiffs were illegally operating a hotel, the Foundation immediately severed its business relationship withthePlaintiffs. 40. Then, in J une 2011, the City sent undercover police officers to Sadigo Court to establish that Sadigo Court was renting to transient guests. After observing transient rental activity, the City's police officers shut down Sadigo Court, and its tenants and guests were evicted on thepretextual ground that Plaintiffs were violating City fire codes. The City's actions attracted media attention. When interviewed by the media, the Plaintiffs chastised the City and characterized their dispute with theCity as a"David andGoliath" battle. 9 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 10 of 28 41. The City's shutdown caused the Plaintiffs' largest client, from whom Plaintiff earned over $100,000 per year inrevenue, to immediately sever its business relationship with the Plaintiffs. 42. InDecember 2011, theCity stormed Sadigo Court with at least 15police officers, 10 code enforcement officers, and 5 fire officials. They shut down Sadigo Court for a second time, on the same pretextual grounds that Plaintiffs were in violation of City fire codes. This second closure of Sadigo Court was maliciously timed by theCity to coincide with theextremely high-profile City-wide weekend "Art Basel Miami Beach," one of the largest art shows in the country. In connection with this art show, Sadigo Court was hosting the PooL Art Fair, one of many area showcase events tobeheldthat weekend. 43. During the opening party for the three-day PooL Art Fair, Sadigo Court was forcibly shut down by City police and code compliance personnel. All of the artists participating inthe event and staying at Sadigo Court weredispossessed and forced to fmd lodging elsewhere. All guests were only given onehour to retrieve their valuable art fromtherooms they had rented andvacate. 44. J ose Alberto, the City's lead code compliance officer, accompanied the police. While observing the closure, Alberto offered to solve Mr. Eisenberg's problems by using "his people," insinuating abribe would be due fromMr. Eisenberg. When Mr. Eisenberg refused by stating he already had legal counsel working on it. Alberto stated that Mr. Eisenberg would not get far using legal means. 45. Mr. Eisenberg was then arrested. 46. Alberto, along with other code compliance and fire department inspectors. would belater arrested inApril 2012 for bribes they accepted inJ une 2011. 10 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10/08/2013 Page 11 of 28 47. Since the arrest of these City code compliance and fire department inspectors, Sadigo Court has not received any further codecompliance notices or violations. The City's Application of Its Unwritten Customs, Policies. and Practices 48. The foregoing actions of City officials were taken pursuant to various unwritten interpretations of City Codes and policies and practices promulgated and applied to Plaintiffs to prevent Plaintiffs from renting apartments within Sadigo Court to transient guests without first making very costly fire protection improvements to Sadigo Court that are neither necessary nor legally required. 49. The unwritten interpretations, policies, and practices include: (1) while Sadigo Court is zoned RM-2, which allows rental of apartments to transient guests, Plaintiffs are not allowed to rent Sadigo Court to transient guests unless they agree to be classified as a hotel rather than as an apartment; (2) where Plaintiffs engage innon-transient rentals of Sadigo Court, they must also change its occupancy anduseto a"hotel" before engaging intransient rentals; (3) where Plaintiffs change the occupancy and use of Sadigo Court to a "hotel" to engage in transient rentals, it becomes a "new" hotel; (4) Sadigo Court, which has been designated as a historic use or structure and has been reclassified as a "new" hotel because Plaintiffs seek to engage in transient rental activities may not be considered a historic use or structure for fire safety purposes no matter its age, designation as a historic use or structure, or actual historic characteristics; and(5) Sadigo Court, which has been designated as ahistoric useor structure and has been reclassified as a "new" hotel because Plaintiffs seek to engage in transient rental activities must be treated as a newly-built structure for fire safety purposes no matter its age, designation as a historic use or structure, or actual historic characteristics; (6) the City's fire protection code applies to Sadigo Court's transient rental activities and code enforcement activities may be brought against Plaintiffs on grounds that they are renting apartments within 11 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 12 of 28 Sadigo Court to transient guests; and (7) the City may restrict transient rentals of Sadigo Court solely based onits classification, useandoccupancy for transient rental purposes. 50. During the 2006-2012 period, the City posted numerous notices of violation or cease and desist orders. All or nearly all of these notices and orders stated that the Plaintiffs had violated fire safety codes because Sadigo Court was engaging intransient occupancy and useof its apartments. 51. Chapter 509, Florida Statutes, establishes comprehensive regulatory oversight of public lodging establishments "for the purpose of safeguarding the public health, safety, and welfare." Fla. Stat. 509.032(1). Public lodging establishments include hotels, motels, vacation rentals, nontransient apartments, and transient apartments. Under the statute, local governments may conduct inspections of public lodging establishments for compliance with the statebuilding code and fire prevention code. Fla. Stat. 509.032(7). However, all other regulation of public lodging establishments ispreempted tothestate. Id. Further, alocal law, ordinance, or regulation may not restrict the use of vacation rentals, prohibit vacation rentals, or regulate vacation rentals based solely ontheir classification, use, or occupancy. Id. 52. The City has acted directly contrary to this legislative preemption and this proscription, and it has further cynically attempted to evade them. Sadigo Court is licensed by the State of Florida as atransient apartment, and Sadigo Court also offers vacation rentals. The City, however, has developed its own unwritten, unadopted system of regulating public lodging establishments. Using this system, theCity has deemed Sadigo Court as ahotel, directly contrary to the State of Florida's determination. The City has done so in order to apply provisions of the fire prevention code that would not otherwise apply were it not for the City's arbitrary determination. Furthermore, using this unadopted regulatory scheme, the City has restricted, 12----------------------- Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 13 of 28 prohibited, and regulated Sadigo Court's vacation rentals based solely on their transient classification, use, andoccupancy. 53. The City has applied and enforced its Code and its unwritten customs to Sadigo Court in order to regulate it as apublic lodging establishment. Further, the City has applied its Code and its unwritten customs to Sadigo Court in order to restrict the use of vacation rentals, prohibit vacation rentals, and regulate vacation rentals based solely ontheir classification, use, or occupancy. These unwritten customs werenot adopted onor before J une 1,2011. 54. Chapter 633, Florida Statutes, develops acomprehensive statewide systemof fire prevention and control. Section 633.202, Florida Statutes, provides for a statewide fire prevention code and its application "to protect public health, safety, and welfare for fire safety issues. It governs the "design, construction, erection, alteration, modification, repair, and demolition of public and private buildings, structures, and facilities." Fla. Stat. 633.202(1). It allows local governments to impose "fire-related infrastructure requirements." It provides, however, that the fire prevention code "does not apply to, and no code enforcement action shall be brought with respect to, zoning requirements or land use requirements." Fla. Stat. 633.202(6). 55. Once again, not only has the City acted directly contrary to this legislative proscription, but it has cynically attempted to evade it. The City applied the fireprevention code to the Plaintiffs to deem Sadigo Court's land use status to be a hotel rather than an apartment, even though the City's zoning and land use requirements allow apartments to offer transient rentals. The City then relies on the fire prevention code to initiate the code enforcement actions described above. 13 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 14 of 28 56. The City has not and does not apply these interpretations and unwritten customs to the owners and operators of other similarly situated apartments who rent their apartments to transient guests. The Consequences of the City's Arbitrary and Malevolent Actions 57. As described above, the City has engaged in a pattern of discriminatory actions against thePlaintiffs motivated by theCity's malice and ill will resulting from: (1) thePlaintiffs' past exposure of corrupt City practices, (2) the Plaintiffs' refusal to participate in such practices, (3) the Plaintiffs' petitioning of elected officials for relief against the practices of City officials and staff, (4) the Plaintiffs' public speech questioning the motives and actions of City officials and staff, (5) thePlaintiffs' past efforts to thwart the City's declaration that properties owned by Plaintiffs' and their related entities were "blighted" and must be redeveloped, (6) the Plaintiffs' past lawsuits against the City related to its public bidding process and its tax-increment financing processes, (7) the Plaintiffs' requests that the City enforce its code against neighboring property owners (8) the City's desire to punish or "get" the Plaintiffs, and (9) for other unknown and arbitrary reasons. 58. These policies andactions were intended to "get" Plaintiffs aspunishment for Mr. Eisenberg having previously exposed City corruption, for Plaintiffs' refusal to "play along to get along" with a corrupt City code compliance and fire inspection regime, and for publically challenging the City's discriminatory conduct inthemedia andbefore theCity Commission. 59. These policies and actions reflect a pattern of pretextual regulatory legerdemain intended to: (1) prevent Plaintiffs fromlawfully renting Sadigo Court unless they either "paid to play" or acquiesced in City official's extortionate demands that they make costly fire safety improvements to Sadigo Court that said officials knew were neither necessary nor legally required; and (2) deprive Plaintiffs of the protections of the City's zoning and land use 14 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 15 of 28 regulations and state statutes that not only authorized Plaintiffs to rent Sadigo Court to transient guests but expressly preempted or prohibited the City fromregulating or interfering with such classification, use, andoccupancy of Sadigo Court based onits firecodes. . 60. The City's actions have damaged the Plaintiffs. These damages include, but are not limited to: loss of business; loss of customers; the cloud on Plaintiffs' title to the subject property; the reduction inthevalue of Sadigo Court andthereal property it is located on; costs of forced refinancing at ahigher rate and under undesirable terms; costs of attempting to comply with the City's arbitrary and malicious demands; City fines, fees, and liens; impairment to reputation; personal humiliation; mental anguish and suffering; emotional distress; a chill on rights to freespeech andtopetition government; and costs and attorney's fees of this lawsuit and of pursuing various City administrative andjudicial remedies which haveproved and continue to befutile. 61. All the City's actions were by City policymakers, at their behest, or because of their deliberate indifference. These policymakers include, but are not limited to, the Mayor, the City Commissioners, the Fire Marshal, the Fire Chief, the code compliance director and the building department director. 62. The Plaintiffs have retained the undersigned attorneys and are obligated to pay themandtheir lawfirmareasonable fee. COUNT I Claim For Declaratory And Injunctive Relief And Damages Under The Federal Constitution For Violation Of Equal Protection of Law 63. Plaintiffs reallege paragraphs 1-62as if fully sort forth herein. 15 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 16 of 28 64. This action is brought pursuant to 42 U.S.C. sections 1983 and 1988 and seeks equitable relief and damages against the City for violating thePlaintiffs' right to equal protection of law guaranteed under theFifth and Fourteenth Amendments totheU.S. Constitution. 65. The City intentionally treated Plaintiffs differently than similarly situated owners of apartments that rent to transient guests, and there is no rational basis for the different treatment. The City also intentionally treated Plaintiffs differently than similarly situated owners of historic structures, andthere is norational basis for thedifferent treatment. 66. The City has arbitrarily and maliciously applied and enforced its Code and its unwritten customs, policies, and practices unequally to discriminate against Plaintiffs without natural basis. 67. The City's actions violate the Plaintiffs' rights to equal protection of law, for which the City isliable. 68. The Plaintiffs are being irreparably harmed by the City's unequal and discriminatory application of its Codeand its unwritten customs, policies andpractices. 69. It is in the public interest to protect owners and operators of a business that acts and operates inthesamemanner asother lawful businesses within theCity. 70. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromthe City's unequal and discriminatory application andenforcement of its Code andits unwritten customs. WHEREFORE, the Plaintiffs respectfully request that this Court grant the following relief: a. Findthat theCity's unequal and discriminatory application andenforcement of its Codeand its unwritten policies violated Plaintiffs' equal protection rights; 16 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 17 of 28 b. Find that theCity is liablefor violating thePlaintiffs' equal protection rights; c. Invalidate the City's interpretations of its Code and its unwritten policies and practices that prevent thePlaintiffs fromrenting apartments at Sadigo Court totransient guests; d. Enjoin the City frominterfering with thePlaintiffs' rental of apartments at Sadigo Court to transient guests and from requiring Plaintiffs to make fire protection improvements demanded bytheCity; e. Award the Plaintiffs damages, pre-judgment interest, and reasonable attorneys' fees and costs against theCity for having violated thePlaintiffs' equal protection rights; f. Grant such other and further relief that this Court determines to beequitable, just, proper, or necessary under thecircumstances. COUNTn Claim For DeelaratoD' And Injunctive Relief And Damages Under Tbe Federal Constitution For Violation Of First Amendment Rigbts 71. Plaintiffs reallege paragraphs 1-62as if fully sort forth herein. 72. This action is brought pursuant to 42 V.S.C. sections 1983 and 1988 and seeks equitable relief anddamages against the City for violating thePlaintiffs' First Amendment rights guaranteed under theFirst andFourteenth Amendments totheU.S. Constitution. 73. The Plaintiffs engaged in protected activity under the First Amendment by petitioning the City and its elected officials and by publically commenting on their dispute with theCity regarding Sadigo Court. 74. The City retaliated against the Plaintiffs, and the Plaintiffs' protected activities were the sole, substantial, or motivating cause of the retaliation. The City would not have undertaken its retaliatory actions inthe absence of thePlaintiffs' protected activities. 17 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 18 of 28 75. The City's actions violate the Plaintiffs' First Amendment rights to petition government and for freespeech, for which theCity isliable. 76. ThePlaintiffs arebeing irreparably banned by theCity's retaliation. 77. It is in the public interest to protect citizens from government retaliation when citizens exercise their constitutional rights. 78. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromtheCity's retaliation. WHEREFORE, the Plaintiffs respectfully request that this Court grant the following relief: a. Find that theCity's retaliatory actions violated Plaintiffs' First Amendment rights; b. Find that the City isliable for violating thePlaintiffs' First Amendment rights; c. Invalidate City actions violative ofthe Plaintiffs' First Amendment rights; g. Enjointhe City frominterfering with thePlaintiffs' rental of apartments at Sadigo Court to transient guests; and from requiring Plaintiffs to make fire protection improvements demanded by theCity; h. Award the Plaintiffs damages, pre-judgment interest, and reasonable attorneys' fees andcosts against theCity for having violated thePlaintiffs' First Amendment rights; d. Grant such other and further relief that this Court determines to beequitable, just, proper, or necessary under thecircumstances. COUNTm Claim For Declaratory And Injunctive Relief And Damages Under The Federal Constitution For Violation Of Due Process of Law 79. Plaintiffs reallege paragraphs 1-62as if fully sort forth herein. 18 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 19 of 28 80. This action is brought pursuant to 42 U.S.C. sections 1983 and 1988 and seeks equitable relief and damages against theCity for violating the Plaintiffs' rights of dueprocess of lawguaranteed under theFifth and Fourteenth Amendments to theU.S. Constitution. 81. ThePlaintiffs haveproperty rights and liberty interests intheir real property, their rights to usetheir real property for renting apartment units to transient guests. and their rights to engage inthebusiness of renting apartment units to transient guests. 82. The City's interpretation of its Code and the unwritten policies and practices promulgated and applied by City officials to prevent Plaintiffs from renting Sadigo Court to transient guests without first making very costly fire protection improvements that are neither necessary nor legally required are arbitrary, capricious and unreasonable, and motivated by malice and ill will toward Plaintiffs. 83. These policies. interpretations. and practices violate the Plaintiffs' rights to due process of law, for which theCity is liable. 84. ThePlaintiffs arebeing irreparably harmed by the City's policies andactions. 85. It is in the public interest to protect owners and operators of a business that operateinthesamemanner asother lawful businesses within theCity. 86. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromtheCity's policies interpretations andpractices. WHEREFORE, the Plaintiffs respectfully request that this Court grant the following relief: a. Find that the City's policies interpretations, practices and actions regarding Plaintiffs' rental of Sadigo Court apartment units to transient guests and regarding the fire 19 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 20 of 28 protection improvements necessary for historic structures have violated the Plaintiffs' due process rights; b. Find that theCity is liablefor violating thePlaintiffs' dueprocess rights; c. Invalidate the City's unwritten interpretations and policies and practices that prevent thePlaintiffs fromrenting apartments at Sadigo Court totransient guests; d. Enjoin theCity frominterfering with thePlaintiffs' rental of apartments at Sadigo Court to transient guests; and fromrequiring Plaintiffs to make the fireprotection improvements demanded by theCity; e. Award the Plaintiffs damages, pre-judgment interest, and reasonable attorneys' fees and costs against theCity for having violated thePlaintiffs' equal protection rights; f. Grant such other and further relief that this Court determines to be equitable, just, proper, or necessary under thecircumstances. COUNT I V Claim For Declaratory And Injunctive Relief And Damages Under The Florida Constitution For Violation Of Due Process of Law 87. Plaintiffs reallege paragraphs 1-62as iffully sort forth herein. 88. This is anaction for equitable relief and damages against the City for violation of the Plaintiffs' rights of due process under the law guaranteed by article I, sections 2 and 9 and article X, section 6of the Florida Constitution, over which this Court hasjurisdiction pursuant to 28 U.s.C.section 1367; article V, section 5, of the Florida Constitution; and sections 26.012(2) and 86.011, Florida Statutes. 89. ThePlaintiffs have property rights and liberty interests intheir real property, their rights tousetheir real property for theuseof renting apartment units totransient guests, and their rights to engage inthebusiness of renting apartment units to transient guests. 20 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 21 of 28 90. The City's interpretation of its Code and the unwritten policies and practices promulgated and applied by City officials to prevent Plaintiffs from renting Sadigo Court to transient guests without first making very costly fire protection improvements that are neither necessary nor legally required are arbitrary, capricious and unreasonable, and motivated by malice and ill will toward Plaintiffs. 91. These policies interpretations and practices violate the Plaintiffs' rights to due process of law, for which theCity is liable. 92. ThePlaintiffs arebeing irreparably harmed by theCity's policies and actions. 93. It is inthe public interest to protect owners and operators of business that operate inthe samemanner asother lawful businesses within theCity. 94. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromthe City's policies interpretations andpractices. WHEREFORE, the Plaintiffs respectfully request that this Court grant the following relief: a. Find that the City's policies, interpretations, practices and actions regarding Plaintiffs' rental of Sadigo Court apartment units to transient guests and regarding the fire protection improvements necessary for historic structures have violated the Plaintiffs' due process rights; b. Find that theCity isliable for violating thePlaintiffs' dueprocess rights; c. Invalidate the City's unwritten interpretations and policies and practices that prevent thePlaintiffs fromrenting apartments at Sadigo Court to transient guests; d. Enjoin theCity frominterfering with the Plaintiffs' rental of apartments at Sadigo Court to transient guests; and fromrequiring Plaintiffs to make the fireprotection improvements 21 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 22 of 28 demanded by theCity; e. Award the Plaintiffs damages, pre-judgment interest, and reasonable attorneys' fees and costs against theCity for having violated thePlaintiffs' equal protection rights; f. Grant such other and further relief that this Court determines to beequitable, just, proper, or necessary under thecircumstances. COUNT V Claim For Declaratory And Injunctive Relief For Violation Of Section 509.013, Florida Statutes 95. Plaintiffs reallege paragraphs 1-62as if fully sort forth herein. 96. This is an action against the City for equitable relief for the City's violation of section 509.032, Florida Statutes, over which this Court has jurisdiction pursuant to 28 V.S.C. section l367 andsection 86.011, Florida Statutes. 97. Section 509.032(7), Florida Statutes, provides that regulation of public lodging establishments is preempted to the state. Section 509.032(7), Florida Statutes, provides that a local law, ordinance, or regulation may not restrict the use of vacation rentals, prohibit vacation rentals, or regulate vacation rentals based solely ontheir classification, use, or occupancy. 98. Sadigo Court is a public lodging establishment holding a valid license issued under chapter 509, Florida Statutes, by the Department of Business and Professional Regulation. Sadigo Court offers vacation rentals, as defined by chapter 509, Florida Statutes. 99. The City has applied, interpreted and enforced its Codeand its unwritten policies and practices to Sadigo Court in order to regulate it as a public lodging establishment. Further, the City has interpreted, applied and enforced its Code and its unwritten policies andpractices to Sadigo Court in order to restrict the use of vacation rentals, prohibit vacation rentals, and 22 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 23 of 28 regulate vacation rentals based solely on their classification, use, or occupancy. These unwritten interpretations andpolicies andpractices werenot madeor adopted on or before J une 1,2011. 100. The Plaintiffs are being irreparably harmed by the City's application interpretation, andenforcement of its Code anditsunwritten policies andpractices. 101. It is in the public interest to protect landowners who operate their businesses in themanner prescribed by statelaw. 102. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromthe City's application and enforcement of its Codeandcustoms. WHEREFORE, the Plaintiffs respectfully request that this Court grant the following relief: a. Find that the City's interpretation, application and enforcement of its Code and unwritten policies and practices regarding the rental of apartment units in Sadigo Court to transient guests andregarding the fireprotection improvements necessary for historic structures, violates section 509.032, Florida Statutes; b. Find that the City is liable for violating the Plaintiffs' rights under section 509.032, Florida Statutes; c. Invalidate the City's interpretation, application and enforcement of its code and unwritten policies andpractices that violate section 509.032, Florida Statutes; d. Award thePlaintiffs costs against theCity for this action; e. Grant such other and further relief that this Court determines to be equitable, just, proper, or necessary under thecircwnstances. COUNT VI Claim For Declaratory And Injunctive Relief For Violation Of Section 633.202(6), Florida Statutes 23 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 24 of 28 103. Plaintiffs reallege paragraphs 1-62asif fully sort forth herein. 104. This is an action against the City for equitable relief for the City's violation of section 633.202, Florida Statutes (formerly section 633.0125), over which this Court has jurisdiction pursuant to 28V.S.C. section 1367andsection 86.011, Florida Statutes. 105. Section 633.202, Florida Statutes, provides that the Florida Fire Prevention Code does not apply to, and no code enforcement action shall be brought with respect to, zoning requirements or land userequirements. 106. Whether an apartment may be rented to transient guest in a particular zoning district such as the RM-2 zoning district directly relates to zoning and land use requirements to which the Florida Fire Protection Code does not apply, and on account of which no code enforcement actions may bebrought. 107. By interpretation of the City Code, and its unwritten policies and practices, the City applies the Florida Fire Prevention Code to determine if particular land uses are hotels, apartments, and transient uses and to make other determinations. The City then relies on the Florida FirePrevention Code for code enforcement actions related tothese determinations, 108. The Plaintiffs are being irreparably harmed by the City's interpretations, and by theapplication of itsunwritten policies andpractices. 109. It is in the public interest to protect landowners who operate their businesses in themanner prescribed by statelaw. 110. The Plaintiffs have no adequate remedy at law to secure meaningful prospective relief fromtheCity's application and enforcement ofits customs. Wherefore, thePlaintiffs respectfully request that this Court grant thefollowing relief: 24 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 25 of 28 a. Find that the City's interpretation of its Code and its application and enforcement of itsunwritten policies andpractices violates section 633.026(6), Florida Statutes; b. Find that the City IS liable for violating the Plaintiffs' rights under section 633.026(6), Florida Statutes; c. Invalidate the City's interpretation, application and enforcement of its code and unwritten policies andpractices that violate section 633.026(6), Florida Statutes; d. Award thePlaintiffs costs against theCity for this action; e. Grant such other and further relief that this Court determines to beequitable, just, proper, or necessary under thecircumstances. COUNT VII Claim For Declaratory Relief Under 28 U.S.c. Section 2201 and Section 86.021, Florida Statutes 111. Plaintiffs reallege paragraphs 1~62as if fully sort forth here. 112. This is an action against the City for declaratory relief under 28 D.S.C. section 2201 and section 86.021, Florida Statutes, over which this Court has jurisdiction pursuant to 28 U.S.C. sections 2201 and 1367and section 86.011, Florida Statutes. 113. Theissues before this Court are: a. Whether Sadigo Court is anapartment building with apartment units; b. Whether the Plaintiffs may rent and lease Sadigo Court's apartments to both transient andnon-transient guests, and whether the Plaintiffs need any permits or approval from the City when they transition the renting and leasing of Sadigo Court's apartments from non- transient guests to transient guests, or viceversa. 25 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 26 of 28 c. Whether Sadigo Court qualifies as a historic structure under all applicable fire safety codes and provisions, and whether such status is or can be lost when Plaintiffs applied or applies for any permits or approvals fromtheCity. d. Whether Sadigo Court meets all equivalency standards under all applicable fire safety codes and provisions, and whether such status is or can be lost when Plaintiffs applied or applies for any permits or approvals fromtheCity. 114. A bona fide, actual, and present practical need exists for this Court to consider anddeclaretherights and obligations of theparties, including therights of thePlaintiffs. 115. By engaging in the arbitrary, malicious, and discriminatory actions described in detail above, the City is in violation of federal and state law, and the City is creating a present ascertained or ascertainable stateof facts or apresent controversy about astateof facts. 116. Given the City's conduct in this matter, the Plaintiffs are in doubt as to their rights. They areaffected by the City's failure to follow federal and statelaw. They areentitled to a declaratory judgment construing the rights, obligations, and relationship of and between the City andthePlaintiffs. 117. The Plaintiffs are being irreparably harmed by the City's actions. No calculable monetary damages canbeascertained that would compensate for the City's actions. 118. It is in the public interest to protect owners and operators of businesses that operatetheir businesses inthemanner prescribed by federal, state, and local law. 119. Accordingly, the Plaintiffs arein need of adeclaratory judgment construing their legal status andthelegal constraints andobligations of theCity. Wherefore, thePlaintiffs respectfully request that this Court grant the following relief: 26 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10/08/2013 Page 27 of 28 a. Find and declare that Sadigo Court is an apartment building with apartment units, andthat Sadigo Court isnot ahotel; b. Find and declare that the Plaintiffs may rent and lease Sadigo Court's apartments to both transient and non-transient guests, and that the Plaintiffs do not need any permits or approval fromtheCity when they transition therenting andleasing ofSadigo Court's apartments fromnon-transient guests to transient guests, or viceversa. c. Find and declare that Sadigo Court qualifies as a historic structure under all applicable fire safety codes andprovisions, andthat such status is not and shall not be lost when Plaintiffs applied or applies for any permits or approvals fromthe City. d. Find and declare that Sadigo Court meets all equivalency standards under all applicable fire safety codes and provisions, andthat such status is not and shall not belost when Plaintiffs applied or applies for any permits or approvals fromtheCity. e. Award thePlaintiffs costs against theCity for this action; f. Grant such other and further relief that this Court determines to beequitable, just, proper, or necessary under thecircumstances. DEMAND FOR J URy TRIAL ThePlaintiffs hereby demands trial byjury onall issues sotriable. CERTIFICATE OF SERVICE IHEREBY CERTIFY that on October ~~013 Ielectronically filed the foregoing with the Clerk of the Court by using the CMlECF systemwhich will send anotice of electronic filing totheparties of record. By: SM~~TLETT,SCHLOSSE~ LO~~ David Smolker, Esq., (FB #349259) Ethan J . Loeb, Esq. (FB #0668338) 27 Case 1:13-cv-23620-CMA Document 1 Entered on FLSD Docket 10108/2013 Page 28 of 28 J acob T. Cremer, Esq. (FB #0083807) 500East Kennedy Boulevard, Suite200 Tampa, Florida 33602 Phone: 813-223-3888 Facsimile: 813-228-6422 Counsel for Plaintiffs