One legal battle between the city of Holmes Beach and the Bali Hai Beach Resort has been put to rest.
But it might not be for long.
Attorney Michelle Grantham of the Bradenton-based Najmy Thompson law firm filed a notice Aug. 17 on behalf of developer Shawn Kaleta to voluntarily dismiss her client’s federal lawsuit against the city without prejudice.
Judge Charlene Honeywell of the U.S. District Court for the Middle District of Florida signed an order finalizing the case’s dismissal the same day.
Kaleta owns many properties in the city, including Bali Hai Beachfront Resort, Coconuts Beach Resort, Anna Maria Island Beach Resort, the Islands West Resort, and accommodations at 305 73rd St. and 102 48th St.
The lawsuit, filed Dec. 31, 2021, claimed the city ran a “black-ball campaign” against him that resulted in $3,125,000 million in damages to his businesses. The complaint demanded a jury trial for injunctive relief. It also sought an order directing the city to issue a public apology via a local newspaper.
The lawsuit alleged that the city discriminated against Kaleta and set out to destroy his “business reputation and goodwill” by:
- Stalling development plans at Bali Hai and prohibiting the business from operating a bar/lounge;
- Denying his attorneys’ access to a special magistrate hearing and failing to record it;
- Failing to respond to public records requests;
- “Arbitrarily and capriciously re-interpreting the city’s code to negatively affect” him, as well as “overly aggressively” filing and prosecuting code enforcement violations against his properties.
An amended lawsuit, filed May 26, is largely identical but does not include $3,125,000 for damages.
Kaleta’s voluntary dismissal came shortly after a June 9 motion to dismiss the amended complaint, filed on behalf of the city by attorney Jay Daigneault from the Clearwater-based Task, Metz & Daigneault law firm.
The motion claims Kaleta’s amended lawsuit is an “impermissible shotgun pleading” failing to provide the city adequate notice of the number and nature of claims against the municipality.
“The city requests that the court dismiss plaintiff’s amended complaint because it is defective in every way possible,” the motion states.
Grantham filed a motion June 30 to deny the city’s motion to dismiss the case. However, it was the last filing before Kaleta’s notice of voluntary dismissal.
Daigneault told The Islander Aug. 19 that Kaleta’s legal team had indicated the case would be refiled.
“I was told by Mr. Kaleta’s council that they wanted to ‘get their ducks in a row,’” Daigneault said. “I don’t know what that meant. Typically, one would have their ducks in a row before their suit is filed.”
Neither Kaleta nor Grantham replied to The Islander to comment on the lawsuit.
