Lease Termination
Dental firm sues Greenberg Traurig in wrongful eviction case

March 05, 2009 By: Jordana Mishory

arina Del Toro ran her dental technician business in Hallandale Beach for more than six years before she was ousted to make way for a major high-rise project during the building boom.

Web Extra:
Florida Supreme Court ruling

Del Toro claimed her landlord V-Strategic Group compelled a Broward County Court judge to kick her out for improper reasons. But it wasn't until the Florida Supreme Court overturned three lower court rulings in July that she got a favorable reception.

Now, Del Toro's company, Pro-Art Dental Lab, is suing her former landlord and its attorneys - powerhouse law firm Greenberg Traurig and shareholder Craig Barnett - for malicious prosecution and abuse. Pro-Art amended its September lawsuit against V-Strategic on Wednesday to name the law firm and Barnett as the forces behind the allegedly frivolous and false lawsuit that resulted in Del Toro's ouster.

V-Strategic's successful 2006 complaint for ejection alleged Del Toro failed to vacate the premises at 2101 E. Hallandale Beach Blvd. despite a binding termination agreement.

Del Toro claimed there was no valid lease-termination agreement, just correspondence negotiating her departure. Del Toro also claimed the county court suit was invalid because only circuit court has jurisdiction in ejection suits.

The state Supreme Court agreed on both counts, saying, "This case should never have progressed this far."

Del Toro's attorney David Charlip contends V-Strategic's lawyers were "either grossly negligent and incredibly stupid, or this was very well thought out and well conceived to derive something that they could not otherwise legally derive."

Charlip said he added Greenberg Traurig and Barnett after a deposition by a V-Strategic official saying the company acted on the advice of counsel.

"This was an attempt by a powerful politically connected law firm to throw their weight around, and they were very effective at doing it," Charlip said.

Craig Barnett did not return a call for comment by deadline. Greenberg Traurig also did not provide comment by deadline.

V-Strategic principals Juan and Jose Ventura and their attorney Anthony Lopez of Marin Eljaiek & Lopez in Miami did not return calls by deadline.

The lawsuit contends V-Strategic, Greenberg Traurig and Barnett knew the allegations in the ejection lawsuit were "utterly and completely false."

In the span of 30 days, Charlip said Del Toro, whose business made false teeth, crowns and other appliances for dentists, found herself on the street, despite paying her rent, abiding by her lease and raising valid arguments against V-Strategic.

"It's a small business person's worst nightmare, and she never recovered from it," Charlip said. He intends to seek punitive damages.

Tortured history

In 2000, Del Toro signed a six-year lease with 1615 North Collins Corp. with an option to renew for five years if she informed her landlord six months before the lease expired. In 2005, Del Toro told her landlord that she intended to stay until 2011. The property changed hands a month later.

Buyer V-Strategic planned to build the $175 million European Club condo-hotel and spa starting in March 2006 and needed to clear the building. The development stalled, and nothing has been built, Charlip said.

In July 2005, V-Strategic faxed Pro-Art's counsel with an offer of early lease termination that would allow the tenant to stay rent free until February 2006 and get a free move.

A month later, Del Toro provided a counter offer, agreeing to vacate by February 2006 at the latest as long as V-Strategic paid $95,000 into her attorney's trust fund account.

"If this agreement is acceptable, please let me know and we can draft the appropriate agreement. Otherwise, my client intends to remain as a tenant until 2011, which is when her current lease expires," wrote attorney Scott Willinger of Sax Willinger & Gold in Miami Lakes, who represented Del Toro at the time.

The two sides exchanged communications for a few months. Del Toro set several deadlines and upped the demand to $261,521.

In February, V-Strategic agreed to Del Toro's terms.

"Please prepare an amendment to the lease setting forth the foregoing terms and conditions," V-Strategic lawyer Santiago Eljaiek of Marin Eljaiek & Lopez in Miami wrote, saying he was holding the money in escrow until the amendment "has been properly executed by both parties." He did not return call for comment by deadline.

Del Toro increased her demand again.

"From my client's standpoint, it was a lot more than a number," Charlip said. "She needed to maintain congruity of the business and clientele."

V-Strategic sued, first in Miami-Dade Circuit Court for breach of contract and tortious interference, and then for ejection in Broward County Court.

"Despite the termination agreement, which has been found to be valid and binding, Pro-Art Dental Lab is still in possession of the leased premises," the ejection complaint said.

V-Strategic pointed to a series of messages proposing counteroffers as evidence of the termination agreement. It wrote it was "ready, willing and able to tender to Pro-Art Dental Lab payment of the settlement amount and execute the necessary documents to complete the settlement." V-Strategic said it had complied with the termination agreement, including depositing the requested money.

Broward County Court Judge Lisa Trachman ruled in favor of V-Strategic. Attempts to stay Trachman's ruling were denied and Pro-Art was evicted several days later, receiving notice of only several hours to pack equipment and go.

Pro-Art contended there was no valid lease-termination agreement, challenged county court jurisdiction and claimed the fast-track timetable applied to eviction lawsuits but not ejection cases.

The Florida Supreme Court agreed with Pro-Art on all counts.

"V-Strategic made the conscious decision to seek ejectment, along with a damages claim, in a county court despite the fact that ejectment actions are subject to the exclusive original jurisdiction of Florida's circuit courts," Justice R. Fred Lewis wrote last July. He noted that Pro-Art challenged jurisdiction at every stage.

Pro-Art's lawsuit contends V-Strategic and Greenberg Traurig made "overtly false allegations," knowing full well that they could not demolish the building without getting rid of Pro-Art.

"The ejection suit was nothing more than coercion to obtain a collateral advantage," the amended suit contends. "They elected not to correct those deficiencies and chose instead to misrepresent the facts and law ... to force Pro-Art from the premises."

____________________

March 2000 - Pro-Art Dental Lab signs a lease agreement with 1651 North Collins

June 16, 2005 - Pro Dental informs landlord of intent to renew lease for five years

July 22, 2005 - V-Strategic acquires the property and offers an early lease termination

Aug. 25, 2005 - Pro-Art submits a $95,000 counteroffer

Oct. 13, 2005 - V-Strategic accepts

Oct. 19, 2005 - Pro-Art withdraws the offer

Jan. 12, 2006 - Pro-Art ups its demand to $261,521

Feb. 17, 2006 - V-Strategic agrees and instructs Pro-Art to draw up lease

March 7, 2006 - V-Strategic sues Pro-Art in Miami-Dade Circuit Court

April 4, 2006 - V-Strategic files an ejection complaint in Broward County Court

May 1, 2006 - Broward County Court Judge Lisa Trachman rules for V-Strategic

May 3, 2006 - Pro-Art is removed by sheriff's deputies

July 10, 2008 - Florida Supreme Court rules in favor of Pro-Art

Sept. 2, 2008 - Pro-Art sues V-Strategic in Broward Circuit Court

Nov. 6, 2008 - V-Strategic files a countersuit against Pro-Art

March 4, 2009 - Pro-Art amends suit to add Greenberg Traurig and a shareholder as defendants