PLACEMENT: Departmental
TITLE:
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REQUEST APPROVAL OF SETTLEMENT AGREEMENT AND RELEASE OF LIABILITY BETWEEN R ERIK, LLC A FLORIDA LIMITED LIABILITY COMPANY AND MARTIN COUNTY, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA, CASE 23-14109-CIV-CANNON
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EXECUTIVE SUMMARY:
executive summary
Staff recommends approval of a settlement agreement and release of liability between Plaintiff, R Erik, LLC and Defendant, Martin County in connection with a Federal lawsuit challenging an ordinance prohibiting the sale of cats and dogs from pet stores and a transfer of fund from General Fund Reserves.
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DEPARTMENT: County Attorney
PREPARED BY: Name: Melissa Pietrzyk
Title: Senior Assistant County Attorney
REQUESTED BY: Melissa Pietrzyk
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
The Plaintiff, R Erik, LLC, filed a Federal lawsuit in the U.S. Southern District of Florida challenging Chapter 9, General Ordinances, Martin County Code, sections 9.1 and 9.87.A.19 that was previously in effect pursuant to Ordinance 1192 regarding the banning of pet stores selling cats and dogs. The Plaintiff raised four Federal challenges under the 14th Amendment due process, three challenges pursuant to state preemption under Florida Statutes, namely, Chapter 823 the Florida Right to Farm Act, Chapter 163 regarding farming activities, and Chapter 828 regarding animals; and one challenge under Florida’s Constitutional Contract Clause.
On September 12, 2023, the County adopted ordinance 1201 which amended Chapter 9, General Ordinances, Martin County Code, including sections 9.1 and 9.87.A.19. As a result of the amendment, the Plaintiff’s pet store has been grandfathered in, and has been issued a letter of pre-existing status.
Last year, on November 4, 2023, the Plaintiff and the County appeared before the Court on the County’s Motion to Dismiss the Second Amended Complaint as moot based upon ordinance 1201. On November 14, 2024, Judge Cannon issued an Order finding the Second Amended Complaint to be moot and allowing the Plaintiff to file a Third Amended Complaint.
A proposed settlement and release agreement is before the Board for consideration which would resolve this lawsuit in its entirety. In particular, if the County agrees to remit to Plaintiff's $250,000 as payment for attorney’s fees, the Plaintiff will abide by the terms of the settlement and release and withdraw this action, thereby not filing a Third Amended Complaint. If the County does not approve of the action, the County Attorney’s office will continue to defend the County as to any subsequently filed Third Amended Complaint.
ISSUES:
Whether to approve the Settlement and Release Agreement.
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine if it is consistent with applicable law identified and addressed legal risks and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board approve the settlement agreement and release of liability and authorize the Chair or her appointee to execute all documents to complete this transaction and to authorize the transfer of funds from the General Fund Reserves.
ALTERNATIVE RECOMMENDATIONS
Direct staff accordingly.
FISCAL IMPACT:
RECOMMENDATION
Authorize a transfer from General Fund Reserves in the amount of $250,000 to facilitate the settlement agreement.
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Funding Source |
County Funds |
Non-County Funds |
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General Fund Reserves |
$250,000 |
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Subtotal |
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Project Total |
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ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☒Other: Settlement Agreement and Release
This document may be reproduced upon request in an alternative format by contacting the County ADA Coordinator (772) 320-3131, the County Administration Office (772) 288-5400, Florida Relay 711, or by completing our accessibility feedback form at www.martin.fl.us/accessibility-feedback <http://www.martin.fl.us/accessibility-feedback>.