5D01-2659 Brooks v. St. Johns Motor Sales

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State: Florida

Court: Florida Fifth District Court

Docket No: 5D01-2659

Case Date: 04/29/2002

Preview:IN THE DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA FIFTH DISTRICT JANUARY TERM 2002 WILLIAM L. BROOKS, Individually, etc., et al., Appellants, v. ST. JOHN'S MOTOR SALES, INC., et al., Appellees. / Opinion Filed May 3, 2002 Non-Final Appeal from the Circuit Court for St. Johns County, J. Michael Traynor, Judge. Frank H. Killgore, Jr., Mark L. Ornstein and William J. Denius of Killgore, Pearlman, Stamp, Ornstein & Squires, P.A., Orlando, for Appellants. Richard G. Rumrell of Rumrell, Wagner & Costabel, LLP, Jacksonville, and Daniel F. Katz, Raymond W. Bergan, Charles T. Kimmett and Edward C. Barnidge, of Williams & Connolly LLP, Washington, D.C., for Appellees. PLEUS, J. This is an appeal of the denial of a motion for a temporary injunction made pursuant to section 320.695 of the Florida Automotive Dealer's Day In Court Act. We have jurisdiction pursuant to Florida Rule of Appellate Procedure 9.130(a)(3)(B). The trial court denied injunctive relief because it found that the petitioner was not a "motor vehicle dealer" as set forth in the statute. We affirm that decision. The trial judge set forth the factual background and issue presented as follows: The Dealer Development Group (DDG) was incorporated in Case No. 5D01-2659

1989 for the stated purpose of allowing qualified individuals with insufficient capital to become owners of Toyota dealerships. In the dealer development program, DDG and an individual, as sole shareholders, would form a corporate dealership. Once the corporate dealership was formed, the individual received an opportunity to manage the dealership and the ability to acquire full ownership of it by applying dealership profits generated during his or her management towards the purchase of DDG's interest in the dealership. The Plaintiff, Brooks, was a District Manager at Southeast Toyota Distributors, LLC (SET), which is the exclusive Toyota distributor in Florida selling products manufactured and approved by Toyota Motor Corporation and imported and sold to SET by Toyota Motor Sales U.S.A., Inc. In 1996, DDG offered the Plaintiff an opportunity to participate in the dealer development program. To that end, the Plaintiff and DDG formed St. Johns Motor Sales, Inc. d/b/a St. Augustine Toyota (St. Augustine Toyota) pursuant to a Stockholder's Agreement entered into on March 23, 1996. Under the terms of the Stockholder's Agreement, DDG became the majority stockholder holding 5,250 shares of Preferred Stock, and Brooks became a minority stockholder holding 3,500 shares of Common Stock. The Plaintiff also agreed to manage St. Augustine Toyota pursuant to a Management Agreement entered into with the dealership on May 1, 1996. On May 23, 1996, St. Augustine Toyota became an authorized Toyota dealership by virtue of a Toyota Dealer Agreement entered into by SET and St. Augustine Toyota. The Toyota Dealer Agreement was renewed in 1998 for an additional two years, and a third agreement became effective on or about November 14, 2000 and was for a term of six (6) years. On May 9, 2001, Walt Bovard, of DDG presented a letter to Brooks which terminated the Management Agreement. The termination was pursuant to Paragraph 5 of the Management Agreement which allowed for termination without cause upon 45 days prior written notice. In accordance with Section 11.01 of the Shareholder's Agreement, upon the Plaintiff's termination the Shareholder's Agreement was likewise automatically terminated and the Plaintiff was required to sell his shares of common stock to DDG.

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Thereafter, on July 6, 2001, the Plaintiff filed a two count verified complaint. In the Complaint, the Plaintiff alleges violation of

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