FULL STORY: Key Club motion denied; writ challenge moves forward

Sarasota County 12th Circuit Court Judge Charles Roberts has denied a request from the Longboat Key Club and Resort to dismiss a petition for a writ of certiorari filed by the Islandside Property Owners Coalition (IPOC) and L’Ambiance and Sanctuary associations against the Longboat Key Club and Resort and the town of Longboat Key.

The ruling means that IPOC and the condominium associations will present their challenge in a Nov. 16 hearing. They claim that the town violated its own codes when the Longboat Key Town Commission approved the Key Club’s proposed $400 million Islandside redevelopment project in June 2010.

IPOC President Bob White announced the ruling in an Oct. 28 prepared statement.

“This motion was the latest in a series of seemingly desperate attempts by Loeb/KCA to avoid a hearing on the merits of IPOC’s position,” White wrote, referring to Loeb Realty Group, which owns the Key Club, and Key Club Associates. “A previous motion by the club to delay the suit, claiming the issues would be resolved by the State Department of Community Affairs was also denied. With two judicial rulings against them, Loeb’s legal strategy seems to be in a tailspin.”

But Michael Welly, general manager of the Key Club, compared the motion to “dotting all the i’s and crossing all the t’s” in the legal case.

“Our goal all along is to win this on merit,” he said.

The Key Club had argued in its motion that IPOC lacked the standing to pursue appeal and the standing to file a lawsuit on behalf of its constituent members; that its formation by constituent members was an ultra vires action (a term that refers to acts of a corporation and/or its officers beyond the powers and authority allowed by law) that violated Florida statutes; and that it was void ab initio, or void from the beginning.

But Roberts wrote in his ruling that the Key Club could not raise arguments regarding standing for the appeal because those issues were not raised during the quasi-judicial hearings that led up to the project’s approval.

The Key Club’s motion also stated that the Sanctuary and L’Ambiance associations didn’t get the approval of 75% of the voting interests of unit owners before filing the lawsuit as required by condominium declarations; that the associations did not have the power under Florida state statutes to create and form IPOC; that the formation of IPOC was void against public policy; and that Sanctuary and L’Ambiance were not given third-party status during the quasi-judicial hearings.

But Roberts wrote that the condominium declarations were outside the record and would not be considered; that both associations are non-profit corporations, which are authorized by Florida statutes to create and hold interests in a limited-liability company; and that Florida statutes enumerate certain powers to condominium associations, including the ability to sue and be sued.

Robert Lincoln, an attorney who represents IPOC and the L’Ambiance and Sanctuary associations, wasn’t surprised by the ruling.

“Everybody knew that we were putting IPOC forward to represent member associations,” he said.

Lincoln said that IPOC’s status was intended to simplify quasi-judicial proceedings because the alternative was for each of its member associations to present arguments. He called arguments that IPOC was created in violation of state statutes “totally unjustifiable.”

“They’re desperate and they’re clearly attempting to use intimidation,” he said.

But Jim Syprett, attorney for Key Club Associates, said that he believed the motion had a 50/50 chance of succeeding because of the lack of related case law.

“Yes, we attorneys would like to win all of our motions,” he said. “But it is not a crushing defeat.”

Roberts has reserved an hour-and-a-half for the Nov. 16 meeting, which begins at 9 a.m. at the Lynn N. Silvertooth Judicial Center. Both Syprett and Lincoln agreed that Roberts is unlikely to make a ruling at the hearing.