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HEISEL LLC v. CITY OF DELTONA (2021)

District Court of Appeal of Florida, Fifth District.2021-09-24No. Case No. 5D20-2422

Summary

Holding. The appellate court reversed the trial court's dismissal with prejudice because the complaint sufficiently alleged all four elements required for a declaratory relief action, and the case was remanded for further proceedings on the merits.

The owners of Jackpot Saloon and the property owner filed suit seeking a court declaration regarding whether certain electronic games constitute illegal gambling devices under city ordinance and state law. After the City of Deltona and Sheriff's Department ordered them to stop operating the games, the business owners sued for declaratory relief, alleging the games were amusement machines rather than slot machines and therefore legal. The trial court dismissed the case, finding no actual controversy existed to support a declaratory judgment action.

The appellate court reversed, holding that the complaint adequately alleged all four required elements for a valid declaratory relief action. The court found a genuine dispute between the parties, a legitimate legal question about the games' classification, uncertainty on the part of the business owners about their right to continue operating them, and a present need for judicial determination of the games' legality. The court emphasized that in evaluating such a complaint, the trial court must accept all well-pleaded allegations as true and need only determine whether the plaintiff is entitled to a declaration—not whether the plaintiff will ultimately prevail.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a complaint adequately alleges the elements required for a declaratory judgment action
  • Classification of electronic games as slot machines versus amusement machines under state law
  • Proper standard for evaluating the sufficiency of a declaratory relief complaint on a motion to dismiss

Procedural posture

The appellants appealed the trial court's order dismissing their Second Amended Complaint for declaratory relief with prejudice.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

David Heisel, Tammy Coffin, and Courtland Plaza of Deltona, LLC (collectively “Appellants”) appeal the order dismissing with prejudice their Second Amended Complaint. We reverse.

Heisel and Coffin own a game room in the City of Deltona known as Jackpot Saloon, and Courtland Plaza owns the property on which Jackpot Saloon is located. When the City of Deltona and the Volusia County Sheriffs Department (collectively “Appellees”) learned of the operation of certain games within the Jackpot Saloon, they served Appellants with a notice to cease and desist the operation of those games because they violate the City of Deltonas prohibition against the use of a “simulated gambling device.”

Appellants complied with the cease and desist notice and subsequently filed a complaint against Appellees for declaratory relief, seeking a determination of whether the games are slot machines or amusement machines and whether they violate sections 849.15 and 849.16, Florida Statutes (2020).

In their Second Amended Complaint (“the Complaint”), Appellants alleged that they offer electronic games to the public, including the Blue Sky Games Version 68 (“Version 68”). The Complaint described Version 68, the way in which it operates, and explained that the outcome of the game is predictable to the player, thereby removing any chance involved in the game. Thus, the Complaint alleged that Version 68 does not violate sections 849.15 and 849.16.

Appellees filed a motion to dismiss the Complaint, arguing that it does not allege an actual controversy necessary to sustain a declaratory judgment action. The trial court agreed with Appellees and dismissed the case with prejudice.

To be legally sufficient, a complaint for declaratory relief must allege that:

(1) there is a bona fide dispute between the parties; (2) the plaintiff has a justiciable question as to the existence or nonexistence of some right, status, immunity, power or privilege, or as to some fact upon which existence of such a claim may depend; (3) the plaintiff is in doubt as to the claim; and (4) there is a bona fide, actual, present need for the declaration.

Ribaya v. Bd. of Trs. of City Pension Fund for Firefighters & Police Officers in the City of Tampa, 162 So. 3d 348, 352 (Fla. 2d DCA 2015). When considering a motion to dismiss, the trial court must treat as true all of the complaints well-pleaded allegations, and it must only look to the complaint and its attachments. Romo v. Amedex Ins. Co., 930 So. 2d 643, 648 (Fla. 3d DCA 2006). Furthermore, the test for the sufficiency of a complaint for declaratory relief “is not whether the complaint shows that the plaintiff will succeed in getting a declaration of rights in accordance with his theory and contention, but whether he is entitled to a declaration of rights at all.” Kelley v. Kelley, 147 So. 3d 597, 601 (Fla. 4th DCA 2014) (quoting S. Riverwalk Invs., LLC v. City of Ft. Lauderdale, 934 So. 2d 620, 622 (Fla. 4th DCA 2006)).

We conclude that the trial court erred in dismissing with prejudice the Complaint because it sufficiently alleged the four requisite elements for a declaratory action, namely that: there is a bona fide dispute between the parties; Appellants have a justiciable question about the existence of their right to continue using Version 68 in their business; Appellants are in doubt about whether they can continue to allow their patrons to use Version 68; and Appellants have a present need for the court to determine whether Version 68 is legal. See Yacht Club by Luxcom, LLC v. Vill. of Palmetto Bay, 306 So. 3d 268, 272 (Fla. 3d DCA 2020) (holding that appellants claim fits squarely within the declaratory judgment scheme where appellant has a present right to have the trial court determine the validity of appellees attempt to rezone appellants property); Sec. First Ins. Co. v. Phillips, 312 So. 3d 502, 503–04 (Fla. 5th DCA 2020) (concluding that a bona fide controversy existed and appellant presented a justiciable question as to the existence of its right to deny coverage under the insurance policy where the parties disagreed about whether the damage occurred while the insurance policy was in effect). Therefore, while we offer no opinion on the merits of Appellants claim, we reverse the order dismissing the Complaint with prejudice and remand for further proceedings. See Palumbo v. Moore, 777 So. 2d 1177, 1179 (Fla. 5th DCA 2001) (holding that trial court erred in dismissing the amended cross-claim and the third-party claim with prejudice where they each stated a cause of action for declaratory relief).

REVERSED and REMANDED.

WALLIS, J.

EISNAUGLE and HARRIS, JJ., concur.