92-005399BID Edwards Macy Breeners, Inc.; Elizabethan Development, Inc.; Et Al. vs. Department Of Labor And Employment Security
 Status: Closed
Recommended Order on Tuesday, November 24, 1992.


View Dockets  
Summary: Property bid in foreclosure. Receivor and court had to approve and lease. Agent for owner having no authority to lease rendered bid unresponsive.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8EDWARDS MACY BREENERS, INC., )

13)

14Petitioner, )

16)

17vs. ) CASE NO. 92-5399BID

22)

23DEPARTMENT OF LABOR AND )

28EMPLOYMENT SECURITY, )

31)

32Respondent. )

34______________________________)

35RECOMMENDED ORDER

37Pursuant to notice, this cause came on for final hearing before P. Michael

50Ruff, duly-designated Hearing Officer of the Division of Administrative

59Hearings, in Tallahassee, Florida.

63APPEARANCES

64For Petitioner: Daniel F. Mantzaris, Esquire

70by Ms. Donlon, as agent for Sand Lake Plaza. A timely protest was filed; and

85ultimately, the dispute was transmitted to the undersigned Hearing Officer for

96resolution by formal proceeding, pursuant to Section 120.57(1), Florida Statutes

106(1991).

107The cause came on for hearing as noticed. The Petitioner presented the

119testimony of two (2) witnesses. The Respondent presented no witnesses

129independently but did elicit direct testimony with witnesses presented by the

140Petitioner. Six (6) exhibits were admitted into evidence. The proceedings were

151transcribed and the parties submitted proposed findings of fact and conclusions

162of law in the form of Proposed Recommended Orders, which are treated in this

176Recommended Order and ruled upon specifically in the Appendix attached hereto

187and incorporated by reference herein.

192FINDINGS OF FACT

1951. In June of 1992, the Respondent/Agency issued a request for proposals

207and bid submittal form, seeking to obtain bids with regard to its intent to

221lease approximately 7,792 square feet of professional office space in Orlando,

233Florida. There is no evidence of any irregularities in the preparation or

245issuance of the request for proposals ("RFP"). Three (3) bids were submitted

259for the proposed lease. Connie Donlon, as agent for Sand Lake Plaza, submitted

272Bid A. Alan Taylor, as agent for Hoffner Commerce Center, submitted Bid B. The

286Petitioner, Edwards Macy Breeners, Inc., is interested in this proceeding as a

298corporation which has a contract to purchase the Hoffner Commerce Center which

310was the subject of Bid B by Alan Taylor, as agent for Hoffner Commerce Center.

325Bid C was submitted by Connie Donlon, also, as an agent for a different

339landlord. Bid C was deemed non-responsive at the outset, and the Department

351only considered the Sand Lake Plaza bid and the Hoffner Commerce Center bid.

364There is no issue concerning Bid C in dispute in this proceeding.

3762. The bids were considered by six (6) evaluators of the Department,

388utilizing a weighted scale and assigning an evaluation value based upon several

400criteria. The maximum score which could be awarded by each evaluator was 100.

413The evaluation scores awarded by the six (6) Department evaluators (evaluators

424A-F) are as follows:

428Sand Lake Plaza Hoffner Commerce Center

434A. 96 93

437B. 94 89

440C. 99 97

443C. 99 98

446E. 99 97

449F. 92 87

452Thus, it can be seen that both bidders scored a high number of points on a

468maximum 100 point scale with the Sand Lake Plaza bid scoring slightly more

481points. Both were deemed responsive at the conclusion of the review process,

493with the Sand Lake Plaza bid being deemed by the Department as somewhat more

507responsive.

5083. The bid for the Sand Lake Plaza was submitted by Ms. Donlon with a

523letter of authority from Robert L. Diaz. The letter stated that Mr. Diaz was

537the owner of Sand Lake Plaza. The record title owner of Sand Lake Plaza is

552actually Sand Lake Plaza Associates, Limited, a limited partnership.

561Apparently, Mr. Diaz was the managing general partner of that limited

572partnership, which holds the record title to the property.

5814. The bid of Hoffner Commerce Center was submitted by Alan Taylor and

594Elizabethan Interiors, Inc., Mr. Taylor's company, with authority of CNL Group,

605Inc., which is the agent for the Resolution Trust Corporation, which actually

617owns Hoffner Commerce Center, the property involved in the Petitioner's bid.

628The Petitioner has a contract to purchase the property from the Resolution Trust

641Corporation.

6425. Sand Lake Plaza Associates, Limited, is the defendant in a foreclosure

654action filed by City Savings Bank to foreclose on the Sand Lake Plaza. The

668action was filed in the circuit court having jurisdiction, and a lis pendens was

682filed with regard to that action. William Frost, Jr., was appointed by the

695court as receiver for Sand Lake Plaza during the pendency of the foreclosure

708action. See Order Appointing Receiver, Petitioner's Exhibit 1. The order

718appointing Mr. Frost as receiver directs that Mr. Frost take possession of Sand

731Lake Plaza and that he perform all obligations of the landlord of Sand Lake

745Plaza. At all times material to the submission and considerations of the bid at

759issue, to lease the Sand Lake Plaza property, that property has been in the

773possession of the receiver, Mr. Frost, by order of the circuit court.

7856. The bid submitted by Connie Donlon for the lease of the Sand Lake Plaza

800was done without the authorization, participation or knowledge of Mr. Frost.

811Rather, Ms. Donlon acted on authority of the general partner of the limited

824partnership, which holds record title to the property and which is the defendant

837in the foreclosure action. The Petitioner established that in order to lease

849the premises at Sand Lake Plaza during the receivership effected by order of the

863court, either the record owner, its agent or the receiver, can obtain a

876prospective tenant. If the receiver was not involved in the initial

887negotiations, the owner or agent must bring the prospective lease to the

899receiver's attention. The receiver then must submit the lease, with his

910recommendation, to the court for approval. All leases, however, finally require

921court approval. The receiver for Sand Lake Plaza has not submitted the lease

934for court approval and, indeed, does not intend to do so. Mr. Frost, as the

949receiver who has custody and control of the property, believes that the proposed

962job service office is not an appropriate tenant for Sand Lake Plaza. He does

976not intend to submit any such lease to the court for approval.

9887. In awarding the bid to Connie Donlon, the Department relied upon the

1001letter of authority submitted by Ms. Donlon in response to that specification in

1014the RFP requiring that proof of ownership or control of the property be

1027supplied. No inquiry was made by the Department to actually determine who was

1040in ownership or control of the Sand Lake Plaza property. The bid specifications

1053and Rule 13M-1.015, Florida Administrative Code, require that the bidder submit

1064proof of his authority to offer the facility for lease.

10748. Lynn Mobley is the Respondent's Facilities Administrator. She oversees

1084all aspects of the Department's occupancy of buildings across the State.

1095Included in her responsibilities was the supervision of the preparation of the

1107RFP and the bid opening procedures related to it. The bids of both the

1121Petitioner and Donlon were determined to be responsive by Ms. Mobley and Barbara

1134Bass, a staff member under her supervision. The bids were then submitted to the

1148evaluation committee comprised of six (6) employees of the Respondent, who

1159reached the evaluation results referenced above.

11659. After Mr. Taylor was notified of the intended award to Donlon, he

1178furnished the Department a copy of the Order Appointing Receiver entered in the

1191foreclosure action. Ms. Mobley determined that that Order would have no effect

1203upon her prior determination that Donlon's bid was responsive, in her opinion.

1215She interpreted the Order Appointing Receiver as not requiring the receiver to

1227join in the bid or give prior approval to the bid. Since Mr. Frost has been

1243receiver in the foreclosure action, he has submitted five to seven leases to the

1257circuit court for its approval for various properties. It has been the past

1270practice that the owner of the property has actually solicited tenants for Sand

1283Lake Plaza. Mr. Frost is not aware of anything in the Order Appointing Receiver

1297which actually requires the owner to obtain his approval prior to submitting a

1310bid for lease of premises over which he is receiver. In the instant case,

1324however, Mr. Frost does not intend to actually execute a lease because he does

1338not believe that the Department's job service office is an appropriate tenant

1350for the property.

1353CONCLUSIONS OF LAW

135610. The Division of Administrative Hearings has jurisdiction of the

1366subject matter of and the parties to this proceeding. Section 120.57(1),

1377Florida Statutes (1991).

138011. The Department has a wide discretion in determination of the lowest

1392responsive bidder, and that discretion will not be overturned unless exercised

1403arbitrarily, capriciously, dishonestly, in violation of law, or upon ignorance,

1413through lack of inquiry. See, William S. Berbusse, Jr., Inc. v. North Broward

1426Hospital District, 117 So.2d 550, 551 (Fla. 2d DCA 1960). The Hearing Officer's

1439responsibility is to determine whether the Department acted fraudulently,

1448arbitrarily, illegally or dishonestly in its initial bid award decision.

1458Department of Transportation v. Groves-Watkins Constructors, 530 So.2d 912, 914

1468(Fla. 1988).

147012. William Frost, Jr., as receiver for Sand Lake Plaza, was charged with

1483the responsibility to take possession, control and custody of the property

1494involved and to protect and conserve that property under the discretion and

1506direction of the court having jurisdiction in the foreclosure action related to

1518the property. The receiver has that authority set forth by statute, order of

1531court, or fairly to be inferred as derived from the practice of the court's

1545equity jurisdiction in such matters. Mr. Frost testified that all leases

1556entered into or considered during his tenure as receiver were negotiated with

1568the knowledge or participation of the receiver. Once agreement was reached, a

1580lease would be presented to the court for approval by Mr. Frost, as the

1594receiver, who would make appropriate recommendations concerning approval or

1603disapproval of those leases.

160713. The course of conduct for leasing of space at Sand Lake Plaza since

1621the appointment of Mr. Frost, as receiver, was that Mr. Frost would be included

1635in all negotiations to lease the premises. Any lease would be submitted to the

1649court for approval before that lease could be considered valid. This was Mr.

1662Frost's authority, as derived from his order of appointment by the court, which

1675directed him to take possession of the premises and to handle all current and

1689future leases. Mr. Frost's testimony clearly shows that he had no knowledge and

1702did not participate in the preparation of the bids submitted by Connie Donlon.

1715Mr. Frost is of the opinion that if a prospective tenant intended to take

1729occupancy of those premises, the receiver should have been included in the

1741bidding process, which was not the case here.

174914. The course of conduct for leasing these premises under order of the

1762court and the receivership of Mr. Frost also shows, however, that the record

1775title owner, its agent, or the receiver could obtain a prospective tenant; but

1788in order to enter the lease, it would require the participation and approval of

1802the receiver and later the court. Here, Connie Donlon did not negotiate the

1815terms of the lease nor enter into one. Connie Donlon, by engaging in the bid

1830process and submitting the lowest, responsive bid (at least facially), secured a

1842prospective tenant. Her securing of the "winning bid" does not, in itself, mean

1855that the lease has to be entered into because, with respect to the Sand Lake

1870Plaza property, the approval of the receiver and the court must be obtained

1883before the lease can be entered into and be enforceable.

189315. Ms. Donlon, then, may have had authority from the owner to submit the

1907bid and that might have been in accordance with the course of conduct and

1921practice of the receivership of the property under the jurisdiction of the

1933court. However, she did not have authority to actually enter into a lease

1946contract because she was not the entity nor the agent of the entity who actually

1961controlled the property. In fact, Ms. Mobley, who testified on behalf of the

1974Department, acknowledged that if the party submitting the bid did not have

1986control of the property and she had known of it, then the bid would not have

2002gotten as far as the evaluation process. Rule 13M-1.015(4)(b), Florida

2012Administrative Code, provides that, in order for a bid for a lease of 2,000 or

2028more square feet of space to be considered, the bidder must include proof of the

2043bidder's authority to offer the facility.

204916. Obviously, the bidder's authority to offer the facility for lease is

2061an essential requirement in the bid evaluation process because acceptance of the

2073bid by the government agency raises a binding contract. Once the bid has been

2087accepted by the agency, the contractual obligations of the bidder are

2098established and if the bidder did not actually have authority to offer the

2111facility, then the contract would be unenforceable. See, Desmond v. Escambia

2122County, 244 So.2d 758 (Fla. 1st DCA 1971). Rule 13M-1.015(6)(a), Florida

2133Administrative Code, contemplates this in that it provides that once a bid for

2146lease premises has been selected, then the Department of General Services'

2157standard lease agreement shall be executed by the successful bidder. In

2168considering the responsiveness of a bid, it is essential that the authority of

2181the person offering the premises for bid be established so that upon award of

2195the bid, the otherwise enforceable contract can be consummated.

220417. Ms. Mobley testified that she and the evaluators were not aware of the

2218pending foreclosure action and the appointment of the receiver having possession

2229and control of the plaza, until after the bids had been evaluated and the award

2244made. In fact, she was made aware of it by submission of a copy of the court's

2261Order Appointing Receiver to her by Mr. Taylor. During the evaluation process,

2273the bids were reviewed simply as submitted and site visits were made, but no

2287inquiries were made to determine the genuineness of Ms. Donlon's authority. The

2299Department was under notice of no fact which would prompt them to make such

2313inquiry because the bid by Ms. Donlon was facially responsive because it

2325asserted, in effect, that she had authority to offer the premises for lease

2338through bidding. If the Department had known of the receivership over the

2350property and the foreclosure action, it could have contacted the receiver, who

2362would have then informed them prior to the award that the lease was not

2376appropriate for the plaza and that he would not seek the court's approval to

2390enter into it.

239318. Thus, it appears that by Ms. Donlon's failure to notify the Department

2406as to the actual circumstances regarding custody and control of the Sand Lake

2419Plaza property, the Department has awarded a bid which cannot be enforced and

2432consummated based upon the evidence in this record. This is not necessarily the

2445fault of the Department, because there are no facts to indicate that it was on

2460notice to inquire behind the facially responsive representation contained in Ms.

2471Donlon's bid concerning her authority to offer the premises for bid and lease.

248419. Thus, it appears that the bid submitted by Ms. Donlon was facially

2497responsive to the bid specifications concerning ownership and control of the bid

2509property. The above-cited rule, as well as the RFP specifications themselves,

2520clearly contemplate that the party bidding the project have control of the

2532property with authority to enter a lease agreement upon award by the Department.

2545The lease then is to be awarded to the lowest responsive bidder.

255720. The Department contends that the bid submitted by Ms. Donlon is

2569responsive facially because Ms. Donlon submitted the appropriate documents to

2579demonstrate her authority. The Department relied upon the statement from the

2590alleged owner of the plaza stating that Ms. Donlon had authority to bid the

2604project. It has developed through evidence adduced at hearing, and information

2615which came to the Department after the award of the bid, that there is really no

2631authority on the part of Ms. Donlon to enter into a lease with the Department,

2646although under the course of conduct under the receivership, she may have had

2659authority to act as agent for the title owner in securing a prospective tenant

2673through the bidding process. However, in order to actually enter into a lease,

2686it would be necessary to secure the receiver's approval and the court's

2698approval.

269921. What has arisen is a situation where the bid submitted by Ms. Donlon

2713was facially responsive but later-developed information, culminating in the

2722facts proven in this proceeding, established that the bid is not responsive in

2735substance because the party with authority to enter into the lease, the

2747receiver, refuses and does not intend to enter into a lease for this office

2761space with the Department. Thus, the evidence has developed to show that, in

2774reality, the Donlon bid is not responsive because the acceptance of it cannot,

2787in fact or at law, result in a binding contract or lease for purposes of the

2803above-cited authority. If the Department persisted in seeking to award the bid

2815and enter a lease with Ms. Donlon as agent for the record title owner, it would

2831be acting arbitrarily and in violation of law because the entry of a lease for

2846such property requires the assent and approval of the receiver and the court

2859having jurisdiction over the premises through the foreclosure action and related

2870lis pendens. Consequently, the bid by the Petitioner remains the only

2881responsive bid based upon the preponderant evidence of record and culminating in

2893the above Findings of Fact. Mr. Taylor's principals, owning or having control

2905of the premises, desire to enter into a lease of the premises. The bid

2919submitted by the Petitioner was a responsive bid. Consequently, the lease

2930should be awarded to the Hoffner Commerce Center through the entry of a lease

2944with the entity, the Petitioner, having ownership or control of the Hoffner

2956Commerce Center or their successors in interest.

2963RECOMMENDATION

2964Having considered the foregoing Findings of Fact and Conclusions of Law, it

2976is therefore,

2978RECOMMENDED that a Final Order be entered by the Respondent/Agency awarding

2989the above-referenced bid to Alan Taylor and Elizabethan Interiors, Inc., as

3000agents for CNL Group, Inc., as agents for the owners of Hoffner Commerce Center,

3014and that a lease should be executed accordingly.

3022DONE AND ENTERED this 24th day of November, 1992, in Tallahassee, Leon

3034County, Florida.

3036___________________________________

3037P. MICHAEL RUFF

3040Hearing Officer

3042Division of Administrative Hearings

3046The DeSoto Building

30491230 Apalachee Parkway

3052Tallahassee, FL 32399-1550

3055(904) 488-9675

3057Filed with the Clerk of the

3063Division of Administrative Hearings

3067this 24th day of November, 1992.

3073APPENDIX TO RECOMMENDED ORDER, CASE NO. 92-5399BID

3080Petitioner's Proposed Findings of Fact

30851-18. Accepted.

308719. Rejected, as immaterial.

309120-21. Accepted.

3093Respondent's Proposed Findings of Fact

30981-6. Accepted.

31007. Accepted, but immaterial.

31048-9. Accepted.

310610. Rejected, as subordinate to the Hearing Officer's

3114findings of fact on this subject matter.

3121COPIES FURNISHED:

3123Ms. Shirley Gooding

3126Acting Secretary

3128Department of Labor and

3132Employment Security

3134303 Hartman Building

31372012 Capital Circle S.E.

3141Tallahassee, FL 32399-2152

3144Cecilia Renn, Esq.

3147Chief Legal Counsel

3150Department of Labor and

3154Employment Security

3156307 Hartman Building

31592012 Capital Circle S.E.

3163Tallahassee, FL 32399-2152

3166Daniel F. Mantzaris, Esq.

3170Edward A. Dion, Esq.

3174Department of Labor and

3178Employment Security

3180Hartman Building, Suite 307

31842012 Capital Circle, S.E.

3188Tallahassee, FL 32399-2189

3191NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

3197ALL PARTIES HAVE THE RIGHT TO SUBMIT TO THE AGENCY WRITTEN EXCEPTIONS TO THIS

3211RECOMMENDED ORDER. ALL AGENCIES ALLOW EACH PARTY AT LEAST TEN DAYS IN WHICH TO

3225SUBMIT WRITTEN EXCEPTIONS. SOME AGENCIES ALLOW A LARGER PERIOD WITHIN WHICH TO

3237SUBMIT WRITTEN EXCEPTIONS. YOU SHOULD CONSULT WITH THE AGENCY CONCERNING ITS

3248RULES ON THE DEADLINE FOR FILING EXCEPTIONS TO THIS RECOMMENDED ORDER.

3259=================================================================

3260AGENCY FINAL ORDER

3263=================================================================

3264STATE OF FLORIDA

3267DIVISION OF ADMINISTRATIVE HEARINGS

3271EDWARDS MACY BRENNERS, INC.,

3275Petitioner,

3276vs. Case No. 92-5399BID

3280DEPARTMENT OF LABOR AND

3284EMPLOYMENT SECURITY,

3286Respondent.

3287_____________________________/

3288FINAL ORDER

3290This cause involves a formal protest by Petitioner, EDWARDS MACY BRENNERS,

3301INC. (Brenners), under section 120.53(5)(b), Florida Statutes (1991),

3309challenging the decision by Respondent, DEPARTMENT OF LABOR AND EMPLOYMENT

3319SECURITY (Department) to award a contract to lease certain office space in

3331Orlando, Florida. The hearing officer assigned by the Division of

3341Administrative Hearings (DOAH) in this cause submitted to the Department a

3352Recommended Order, a copy of which is attached and incorporated by reference,

3364that would direct the Department to award the contract to the next lowest

3377bidder. The Department timely submitted exceptions to the Recommended Order and

3388Brenners filed a response to those exceptions. The cause is before me for entry

3402of a final order. Section 121.57(1)(B)(10), Fla. Stat. (Supp. 1992).

3412The record reflects that the Department issued a request for proposals for

3424office space in which to locate a job service office in Orlando. The Department

3438received proposals from Connie Donlon, agent for Sand Lake Plaza, from Alan

3450Taylor, agent for Hoffner Commerce Center, and from Connie Donlon, agent for

3462property later determined to be non responsive. Following evaluation of the two

3474responsive bids, the Department decided to award the bid to Connie Donlon.

3486Petitioner holds an executory contract to purchase the Hoffner Commerce Center

3497and filed a timely protest, arguing essentially that agent Donlon lacked the

3509authority to execute a contract for lease of the Sand Lake Plaza because the

3523property was in receivership and the receiver would decline to approve the

3535lease. Following hearing the Hearing Officer issued a Recommended Order that

3546would direct the Department to award the bid and execute a contract for lease

3560with the agents and owners of Hoffner Commerce Center. For reasons expressed

3572below, I decline to enter a final order as recommended by the Hearing Officer.

3586I. Rulings on Exceptions to Conclusions of Law

3594The Department contends that the record fails to support adequately the

3605hearing officer's conclusion of law that the receiver of Sand Lake Plaza must

3618approve the prospective contract for lease. Exceptions To Hearing Officer's

3628Recommended Order at para. 1. The Department correctly argues that it is the

3641court that appointed the receiver, rather than the receiver himself, that must

3653approve the lease of property subject to receivership. The receiver is an

3665officer of the circuit court and subject to its jurisdiction and control.

3677Technically, the receiver recommends rather than approves particular action

3686involving the receivership. Although the Recommended Order in several instances

3696states that the approval of the receiver is necessary before Sand Lake Plaza may

3710be leased, the Order also notes that the court must approve the lease of

3724property subject to receivership. Recommended Order at 1 2, para. 20. For this

3737reason, I find that the Department's first exception lacks merit.

3747The Department next contends that the hearing officer improperly concluded

3757as a matter of law that the receiver had authority to approve or deny the

3772prospective contract for lease of Sand Lake Plaza. I agree.

3782The fundamental question in this case is whether an agency that seeks to

3795award a contract to the lowest and best responsive bidder under section

3807120.53(5), Florida Statutes (Supp. 1992), and rule 60H-1.015 (formerly rule 13M-

38181.105), Florida Administrative Code, must award the contract to the second

3829lowest responsive bidder when the agency learns after the initial award but

3841before execution of the contract that the agent for the first responsive bidder

3854may lack the authority to execute the contract?

3862Rule 60H-1.015 prescribes a two-step bid process, which begins with the

3873proposal and follows with contract execution. If signed by an agent, the

3885proposal must include written evidence of the agent's authority. Fla. Admin.

3896Code R. 60H-1.015(4)(b). The Hearing Officer found that Connie Donlon submitted

3907a responsive proposal that comported with this requirement. Recommended Order

3917at 11, 19. This fact is undisputed. Second, the rule requires the prospective

3930lessor to "[p]rovide Full Disclosure Statements of Ownership if awarded bid."

3941Fla. Admin. Code R. 60H-1.105(3)(c)(5)(emphasis added); Department's Request for

3950Proposal and Bid Proposal Submittal Form at para. 13(b). The Department has not

3963yet completed the contract award process, nor could it at this time. See

3976120.53(5)(c)1 Fla. Stat. (Supp. 1992).

3981The hearing officer's reliance on the receiver's testimony that he would

3992not execute the lease is unsound for several reasons. First, the owner of Sand

4006Lake Plaza filed a voluntary petition for reorganization under the federal

4017bankruptcy law, and relief was ordered on October 15, 1992. Exceptions to

4029Hearing Officer's Recommended Order at para. 2. That action vests jurisdiction

4040of the subject estate exclusively in the bankruptcy court and operates as an

4053automatic stay of the state court receivership. 11 U.S.C. Section 362(a)(3);

4064Federal Home Loan Mortgage Corp. v. Holme Circle Realty Corp., 146 B.R. 135, 137

4078(Bankr. E.D. Pa. 1992). Therefore, the Hearing Officer erroneously concluded

4088that as a matter of law the "assent and approval" of the receiver was required

4103before the owners could lease their property to the Department. Recommended

4114Order at para. 12.

4118Second, the Hearing Officer can only speculate on the ultimate outcome of

4130the receiver's choice not to recommend the lease of Sand Lake Plaza. For

4143instance, the Hearing Officer omitted to consider that the decision of a

4155receiver over receivership property is subject to challenge. See, e.g., Murtha

4166v. Steijskal, 232 So.2d 53, 55 (Fla. 4th DCA 1970)(noting that receiver may be

4180sued without leave of court for unauthorized acts or contracts or for

4192misfeasance or negligence); 29 U.S.C. Section 959(a)(1968)(receivers may be sued

"4202with respect to any or their acts or transactions in carrying on business

4215connected with such property"). It is premature for the Hearing Officer to

4228anticipate the decision of the circuit court regarding the receiver's

4238recommendation. In ruling on a challenge to the decision of the receiver, the

4251circuit court may be guided by facts not introduced and legal arguments not

4264raised in the administrative hearing. Yet, the Hearing Officer in this instance

4276implicitly approved the propriety of the receiver's decision.

4284I also note that the Hearing Officer left the owners of Sand Lake Plaza

4298without recourse of seeking approval of the bankruptcy trustee to execute the

4310lease contract. Thus, the Hearing Officer effectively disabled the Department

4320from consummating the procedure prescribed by the legislature and administrative

4330code and awarding the contract to the "lowest" and "best" bidder. See

4342Intercontinental Properties, Inc. v. State Department of Health & Rehabilitative

4352Servs., 606 So.2d 380 (Fla. 3d DCA 1992).

4360II. Conclusion

4362After reviewing the complete record and ruling on all exceptions filed in

4374this matter, it is ORDERED that the Recommended Order of the Hearing Officer is

4388rejected, and that the Department reinstitute the contract award process with

4399the owner of Sand Lake Plaza.

4405This Final Order constitutes final agency action. Judicial review of this

4416proceeding may be instituted by filing a notice of appeal in accordance with

4429section 120.68, Florida Statutes, in the district court of appeal where the

4441agency maintains its headquarters or where a party resides. Such notice must be

4454filed in the district court within thirty (30) days of the date that this order

4469is filed in the official records of the Department of Labor and Employment

4482Security, as indicated in the clerk's certificate below, or further review of

4494this action will be barred.

4499DONE AND ORDERED in Tallahassee, Florida, this 28th day of January, 1993.

4511_______________________________

4512JAMES E. BLOUNT, Director

4516Division of Administrative Services

4520Florida Department of Labor and

4525Employment Security

4527CERTIFICATE OF SERVICE

4530I hereby certify that a true and correct copy of the foregoing Final Order

4544has been furnished by U.S. Mail to DANIEL F. MANTZARIS, ESQ., Attorney for

4557Petitioner, at Drage, de Beaubien, Knight, & Simmons, 120 South Orange Avenue,

4569Orlando, Florida 32802, and by hand delivery to Cecilia F. Renn, General

4581Counsel, and Edward A. Dion, Assistant General Counsel, Department of Labor &

4593Employment Security, 307 Hartman Building, 2012 Capital Circle SE, Tallahassee,

4603Florida 32399, this 28th day of January, 1993.

4611_______________________________

4612Nelda J. Atkinson, Agency Clerk

4617cc: Clerk, Div. Admin. Hearings

4622DeSoto Building

46241230 Apalachee Parkway

4627Tallahassee, Florida 32399

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Date
Proceedings
Date: 04/19/1993
Proceedings: (Respondent) Response to Petition for Stay Pending Appeal filed.
Date: 04/09/1993
Proceedings: (Petitioner) Petition for Stay Pending Appeal filed.
Date: 03/01/1993
Proceedings: courtesy copy of notice of appeal filed.
Date: 03/01/1993
Proceedings: AGENCY APPEAL, ONCE the RETENTION SCHEDULE of -KEEP ONE YEAR AFTER CLOSURE- IS MET, CASE FILE IS RETURNED to AGENCY GENERAL COUNSEL. -ac
Date: 01/29/1993
Proceedings: Final Order filed.
PDF:
Date: 01/28/1993
Proceedings: Agency Final Order
Date: 12/14/1992
Proceedings: Exceptions to Hearing Officer's Recommended Order filed.
PDF:
Date: 11/24/1992
Proceedings: Recommended Order
PDF:
Date: 11/24/1992
Proceedings: Recommended Order sent out. CASE CLOSED. Hearing held 9/15/92
Date: 11/23/1992
Proceedings: (Petitioners) Notice of Supplemental to Record filed.
Date: 11/20/1992
Proceedings: (Petitioners) Notice of Supplement to Record w/supporting attachment filed.
Date: 11/19/1992
Proceedings: (Petitioners) Notice of Supplement to Record w/attached Suggestion of Bankruptcy filed.
Date: 10/29/1992
Proceedings: Letter to PMR from D. Mantzaris (re: Preparation of Recommended Order) filed.
Date: 10/09/1992
Proceedings: Subpoena Ad Testificandum w/Affidavit of Service filed. (From Daniel F. Mantzaris)
Date: 10/02/1992
Proceedings: (Respondent) Proposed Recommended Order filed.
Date: 10/01/1992
Proceedings: Petitioners` Findings of Fact, Conclusions of Law, and Proposed Recommended Order filed.
Date: 09/24/1992
Proceedings: Transcript filed.
Date: 09/16/1992
Proceedings: (Petitioner) Notice of Appearance filed.
Date: 09/15/1992
Proceedings: CASE STATUS: Hearing Held.
Date: 09/04/1992
Proceedings: Notice of Hearing sent out. (hearing set for 9-15-92; 9:30am; Tallahassee)
Date: 09/02/1992
Proceedings: Agency referral letter; Petition for Formal Administrative Hearing and Formal Bid Protest filed.

Case Information

Judge:
P. MICHAEL RUFF
Date Filed:
09/02/1992
Date Assignment:
09/02/1992
Last Docket Entry:
04/19/1993
Location:
Tallahassee, Florida
District:
Northern
Agency:
ADOPTED IN PART OR MODIFIED
Suffix:
BID
 

Related DOAH Cases(s) (1):

Related Florida Statute(s) (3):

Related Florida Rule(s) (1):