West Kendall Holdings, LLC v. Downrite Engineering Corp.
West Kendall Holdings, LLC v. Downrite Engineering Corp.
Opinion of the Court
The plaintiff, West Kendall Holdings, LLC, appeals an order dismissing its complaint with prejudice. We reverse the order, finding that none of the grounds argued in the motion merit dismissal with prejudice.
The test on a motion to dismiss is not whether the plaintiff can prevail at trial, but whether the complaint states a cause of action. United Auto. Ins. Co. v. Law Offices of Michael I. Libman, 46 So.3d 1101, 1103 (Fla. 3d DCA 2010). A dismissal order is reviewed de novo, and the “allegations of the complaint are assumed to be true and all reasonable inferences arising therefrom are allowed in favor of the plaintiff.” Ralph v. City of Daytona Beach, 471 So.2d 1, 2 (Fla. 1985); accord United Auto. Ins. Co., 46 So.3d at 1103-04. Applying these principles to West Kendall’s complaint, it does state a cause of action against the appellee, Down-rite Engineering.
In its motion to dismiss, Downrite Engineering attacked the complaint on three grounds. It argued that a New York bankruptcy court had exclusive jurisdiction over the parties’ dispute; that a settlement agreement between the parties released Downrite Engineering from any liability; and that the economic loss rule barred West Kendall’s negligence claim. However, these grounds do not support dismissal with prejudice.
The first ground for dismissal lacks merit because the bankruptcy court had entered a final decree under 11 U.S.C. § 350 closing the jointly administered case of West Kendall (and 127 other related entities) two months before the filing of West Kendall’s circuit court complaint in Miami. The bankruptcy court’s retention of jurisdiction for certain limited purposes
Second, although the bankruptcy court approved a settlement agreement between West Kendall and Downrite Engineering in 2009, that agreement did not conclusively bar the action below.
Based on this analysis, we reverse and remand the case for further proceedings.
. The New York bankruptcy court retained jurisdiction (1) to enforce the terms of the confirmed plans of reorganization for the 128 related entities, (2) to consider the motion of "any party” to re-open any of the bankruptcy cases "for cause,” and (3) to interpret or implement the order closing the cases. The record discloses no motion by Downrite Engineering after that order to re-open West Kendall's bankruptcy or to seek other relief in the New York case.
. Downrite Engineering may raise release as an affirmative defense upon remand, but that issue is inappropriate for summary disposition at this stage and on this record. Fla. R. Civ. P. 1.110(d); Pontier v. Wolfson, 637 So.2d 39 (Fla. 2d DCA 1994).
. But see Tiara Condo. Ass’n v. Marsh & McLennan Cos., 110 So.3d 399 (Fla. 2013).
Reference
- Full Case Name
- WEST KENDALL HOLDINGS, LLC, etc. v. DOWNRITE ENGINEERING CORPORATION, etc.
- Cited By
- 3 cases
- Status
- Published