FRONTIER FLORIDA LLC, F/K/A VERIZON FLORIDA LLC, APPELLANT,
v.
FLORIDA POWER & LIGHT CO., APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Frontier Florida LLC (formerly Verizon Florida LLC) appeals from summary judgment for FPL on a breach of contract claim regarding a Joint Use Agreement for pole placement. The court affirms, holding that Verizon's unilateral reduction of payments from the full invoiced amount to approximately 25% constituted a breach, as the FCC Pole Attachment Order did not authorize such reduction.
The court held that Verizon breached the Joint Use Agreement by unilaterally reducing payments to approximately 25% of the invoiced amounts. The FCC Pole Attachment Order did not authorize this reduction; it merely provided the ability to file a complaint with the FCC regarding whether rates were just and reasonable. Verizon's unilateral action, unsupported by the Agreement or the FCC order, constituted a material breach resulting in damages.
[1] A party's unilateral reduction of payments under a contract constitutes a breach of that contract when the contract does not provide for such a reduction.
[2] A party cannot unilaterally alter its payment obligations under a contract by relying on a regulatory order that does not mandate such an alteration.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“for more than thirty-five years, FPL submitted invoices to Verizon, and Verizon paid the amounts as invoiced. The amounts to be paid by Verizon to FPL were calculated in accordance with the Agreement. At no time did Verizon question the manner in which the invoices were calculated, nor contend that the invoices were contrary to the terms of the Agreement.”
Establishes the parties' longstanding compliance with and acceptance of the payment methodology under the Agreement, which undermines any argument for a unilateral modification.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceFPL and Verizon operated under a Joint Use Agreement since 1975, whereby FPL invoiced Verizon for use of FPL's poles and Verizon paid the invoiced amo…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Contractual Obligation cases and more on FLexlaw
Frontier Florida LLC, formerly known as Verizon Florida LLC (“Verizon”) the defendant below, appeals from the trial court’s entry of summary judgment in favor of Florida Power & Light Company *329(“FPL”), the plaintiff below, on its complaint for breach of contract. We affirm.
The contract at issue was a Joint Use Agreement which provided for the placement of the parties’ facilities on each other’s poles. The parties operated under this Agreement since 1975 and, for more than thirty-five years, FPL submitted invoices to Verizon, and Verizon paid the amounts as invoiced. The amounts to be paid by Verizon to FPL were calculated in accordance with the Agreement. At no time did Verizon question the manner in which the invoices were calculated, nor contend that the invoices were contrary to the terms of the Agreement.
In 2012 Verizon stopped paying the invoices submitted by FPL and began paying an amount which represented approximately 25% of the amount invoiced pursuant to the Agreement.
In the action below, Verizon did not contest the validity of the Joint Use Agreement. Instead, Verizon asserted it paid this reduced amount pursuant to an application of a Pole Attachment Order issued by the Federal Communications Commission in 2011. However, that FCC Order did not make any determination of the rate that Verizon should pay pursuant to the Agreement, but rather provided Verizon (and other entities) the ability to file a complaint with the FCC should that entity contend that the rate it was paying was not “just and reasonable.”1
Verizon’s unilaterally-reduced payment was rejected by FPL, and such amount or rate has never been determined by the FCC to be “just and reasonable.”2 FP & L filed the instant breach of contract action to collect the underpayments it alleged were withheld by Verizon in breach of the Agreement.
Following discovery, FPL filed its motion for summary judgment and, following a hearing, the trial court entered summary judgment for FPL and awarded damages of nearly $2.6 million plus prejudgment interest. Upon our de novo review, we conclude that the trial court properly determined that there were no material facts in dispute; that the Agreement under which the parties had operated for more than thirty-five years was a valid contract; that FPL had complied with the material terms of the Agreement; that Verizon failed and refused to make the required payments invoiced by FPL pursuant to the Agreement; and that Verizon’s actions constituted a breach of its obligations under the Agreement, resulting in damages as set forth in the final judgment.
Affirmed.