Florida Court Holds Florida Power and Light Company Liable for Breach of Mining Contract

A Circuit Court judge for the 17th Judicial Circuit in Broward County, Florida has held that the Florida Power and Light Company (FPL) breached a contract that allowed Road Rock, Inc., owned by Robert Elmore, to extract rock, sand, and stabilizer from the company’s cooling ponds for its Lauderdale power plant in Dania Beach, Florida.

“We are delighted with this result,” said Nancie G. Marzulla, counsel for Mr. Elmore and Road Rock, Inc. She added, “The contract that the parties entered into explicitly allowed Mr. Elmore to quarry the lake. Despite the millions of dollars at stake to Mr. Elmore and his company, FPL simply did not want to honor this agreement leaving Mr. Elmore no choice but to pursue this lawsuit.”

The parties in this case entered into the contract at issue in 1955. By agreement, Mr. Elmore acquired the land and FPL was allowed to establish a 150-acre lake to serve as a cooling pond for its nearby power plant. In 1984, Mr. Elmore reconveyed the lake and property surrounding the lake to FPL but retained the right to continue quarrying the valuable rock, sand, and stabilizer materials in the lake.

In the early 1990s, FPL began an approval process to expand and repower the plant with gas turbine generators. This process required modifications to the lake. As a result, FPL wanted to maintain certain peninsulas in the lake for its modified cooling process, preventing Elmore from quarrying in the lake.

A trial for damages resulting from FPL’s breach of contract is expected to take place this summer.

Marzulla Law is a Washington, D.C.-based law firm that represents business owners, developers, and landowners in complex contract disputes. For more information about Marzulla Law or this decision call 202-822-6760 or visit Marzulla.com. For updates on takings and contract decisions involving the federal government visit http://takeontakings.blogspot.com/.

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