Greenberg Traurig Team Wins Reversal of $30M Judgment Against Small Town
A long-running fight over commercial development in a bedroom community leaves Ponce Inlet victorious.
December 11, 2017 at 06:00 AM
12 minute read
Elliot H. Scherker and Brigid F. Cech Samole
Greenberg Traurig
In a twist on bet-the-company litigation, Greenberg Traurig appellate shareholders
Elliot H. Scherker and Brigid F. Cech Samole prevailed in bet-the- town litigation.
Ponce Inlet in Volusia County was found liable on federal and state takings claims when it was sued by a would-be developer who maintained the town unlawfully deprived him of development opportunities on 16 acres he owned after a series of purchases on the Halifax River. The plan would have greatly expanded commercial development in what is primarily a residential community.
The liability phase of the case was decided in a bench trial that resulted in a 50-plus page order finding in favor of Pacetta LLC and two related companies on both sets of claims.
Scherker, co-chair of the firm's national appellate practice, and Cech Samole, were retained for the town's appeal. They started searching for legal error since the trial judge's factual findings are presumed to be correct on appeal.
The first appeal was a successful interlocutory review of the judgment on state-law claims. On remand, the case went to a jury trial on the federal claims and produced a $30 million judgment including prejudgment interest against the town of 3,200 people. That works out to about $9,400 per person.
On a second appeal, Scherker and Cech Samole secured a reversal of the judgment in June, which came with a ruling that the developer had no viable total takings claim. A request for rehearing was denied.
The case was remanded for retrial only on a partial takings claim involving one parcel, which is a fraction of the initial claim and one that the trial team vigorously will defend.
The legal team attended town council meetings as the litigation proceeded. The attorneys felt the pressure to prevail was palpable at the each meeting, and many townspeople turned out in force for court hearings.
Elliot H. Scherker and Brigid F. Cech Samole
In a twist on bet-the-company litigation,
Elliot H. Scherker and Brigid F. Cech Samole prevailed in bet-the- town litigation.
Ponce Inlet in Volusia County was found liable on federal and state takings claims when it was sued by a would-be developer who maintained the town unlawfully deprived him of development opportunities on 16 acres he owned after a series of purchases on the Halifax River. The plan would have greatly expanded commercial development in what is primarily a residential community.
The liability phase of the case was decided in a bench trial that resulted in a 50-plus page order finding in favor of Pacetta LLC and two related companies on both sets of claims.
Scherker, co-chair of the firm's national appellate practice, and Cech Samole, were retained for the town's appeal. They started searching for legal error since the trial judge's factual findings are presumed to be correct on appeal.
The first appeal was a successful interlocutory review of the judgment on state-law claims. On remand, the case went to a jury trial on the federal claims and produced a $30 million judgment including prejudgment interest against the town of 3,200 people. That works out to about $9,400 per person.
On a second appeal, Scherker and Cech Samole secured a reversal of the judgment in June, which came with a ruling that the developer had no viable total takings claim. A request for rehearing was denied.
The case was remanded for retrial only on a partial takings claim involving one parcel, which is a fraction of the initial claim and one that the trial team vigorously will defend.
The legal team attended town council meetings as the litigation proceeded. The attorneys felt the pressure to prevail was palpable at the each meeting, and many townspeople turned out in force for court hearings.
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