Looks like a local developer’s federal lawsuit against the city of Holmes Beach could have some staying power.
Judge Charlene Honeywell of the U.S. District Court for the Middle District of Florida June 2 denied the city’s motion to dismiss developer Shawn Kaleta’s lawsuit against the municipality for its alleged “Anti-Kaleta policy.”
Kaleta owns numerous properties in the city, including Bali Hai Beachfront Resort, Coconuts Beach Resort, Anna Maria Beach Resort, Beach Bistro and more.
The lawsuit first was filed in federal court against Holmes Beach on Dec. 31, 2021, claiming the city violated Kaleta’s constitutional rights by discriminating against the developer, stalling development plans, denying access to public hearings and failing to respond to record requests.
The developer voluntarily dismissed the first lawsuit but filed an amended complaint 75 days later.
The city filed a motion to dismiss the case April 28 arguing that the developer’s claims should be dismissed, including the following:
- Failure to “sufficiently allege similarly situated comparators who have been treated more favorably;”
- Failure to state a claim “upon which relief may be granted;”
- Failure to join indispensable parties.
Honeywell’s June 2 order dismissed the city’s motion and directed the city to file a responsive pleading to Kaleta’s amended complaint within 14 days.
Mayor Judy Titsworth declined to comment on the matter in a June 5 call with The Islander.
Attorney Jay Daigneault of Clearwater-based Trask Daigneault, representing the city, told The Islander June 5 that the judge’s denial of the city’s motion “doesn’t speak to the merits of the case at all.”
“The city still believes the case to be without merit, and it’s going to defend it with that perspective,” Daigneault said. “I’m quite confident that we’re going to prevail in the case.”
Kaleta’s attorney, Louis Najmy, principal in the Bradenton-based Najmy-Thompson law firm, told The Islander June 3 that getting past a motion to dismiss was the first major hurdle to clear for any federal lawsuit.
He said that, compared to circuit court, there are fewer opportunities for federal lawsuits to become reality, so Honeywell’s order brings it one step closer.
“Federal court is a little tighter. It’s a more complex system. A more expensive system. A crowded system. And they tend to have tighter rules on whether claims can be made,” Najmy said. “Now we can move on with discovery and move toward a trial.”
Najmy said the developer is willing to work on a settlement but the city has been “unwilling.”
“They’re not bad people but they all kind of have the same ailment, of, ‘We don’t like Shawn, so we’re just going to say no,’” Najmy said. “I would just ask that they consider potentially making responsible choices and not just enforcement choices based on animosity. … It’s just not right.”
As the case progresses, a trial could begin May 6, 2024, according to court documents.