Palm Beach Florida Hotel v. Nantucket Enterprises, Inc.

211 So. 3d 42 (2016)

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Nature of the Case

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Facts

Nantucket (P) leased 20,281 square feet of space within an Embassy Suites Hotel from D under the terms of a written lease agreement. The leased space was comprised of several distinct areas within D's hotel: (1) a restaurant area, lounge, and kitchen facility (8,730 square feet); (2) an atrium and gazebo (1,950 square feet); (3) a ballroom area (8,165 square feet); and (4) two boardrooms (1,436 square feet). In the event of a breach, the lease allowed D terminate the Lease by self-help, in which event P shall immediately surrender possession of the Leased Premises to D; D could enter upon and take possession of the Leased Premises and expel or remove P and any other occupant therefrom with or without having terminated the lease. The lease stated that D shall not be deemed to have violated any right of P and shall not be deemed to be guilty of trespass, conversion or any other criminal or civil action as a result of such action. P failed to acquire the correct building permits, and the City closed the restaurant and placed red tags on the doors, which indicated the restaurant was unsafe for occupancy. D then placed chains and locks on the doors to the kitchen area, the restaurant area, and P's back offices. D terminated the lease agreement and had the police escort P's employees from the restaurant. P ceased to operate its business on the leasehold premises. D's claim for breach of lease and P's claims for wrongful eviction and conversion were tried before a jury. The trial court entered a directed verdict, finding that P was wrongfully evicted from the entire 20,281 square foot lease premises. The jury awarded P $8.8 million in damages on its wrongful eviction claim as well as $2 million on its conversion claim. The jury found in favor of P on D's claim for breach of lease. Both parties appealed.