Filing # 12310125 Electronically Filed 04/09/2014 02:01:35 PM IN THE CIRCUIT COURT OF THE FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA OFFICE OF THE ATTORNEY GENERAL, STATE OF FLORIDA, DEPARTMENT OF LEGAL AFFAIRS Plaintiff, v. Case No.: BOATS OF FLORIDA, INC., a dissolved Florida corporation, and EZ BOAT SALES INC., a Florida corporation, LOUIS RIVERA, as an individual and as owner of EZ Boat Sales Inc. and Boats of Florida, Inc. Defendants. / COMPLAINT The State of Florida, Office of the Attorney General, Department of Legal Affairs, (hereinafter the Plaintiff ), sues Defendants EZ BOAT SALES Inc., BOATS OF FLORIDA, INC., and LOUIS RIVERA (hereinafter the Defendants ), and alleges as follows: 1. This is an action pursuant to Florida's Deceptive and Unfair Trade Practices Act, Chapter 50l, Part II, Florida Statutes (2013) ( the Act ). The action seeks injunctive relief, statutory relief, including civil penalties, and attorney s fees, pursuant to the Act. Defendants operate a watercraft business that specializes in consignment contracts with boat owners to find buyers for their boats. Additionally, Defendants offer maintenance and repair services for boats and other water craft. Defendants routinely made misrepresentations to consumers regarding the sale of boats, defrauding them out of more than $80,000. 1
JURISDICTION AND VENUE 2. This Court has jurisdiction over the subject matter pursuant to the provisions of the Act. The granting of civil penalties, including injunctive relief and attorneys fees is within the jurisdiction of the Circuit Court. 3. The violations alleged herein affect or occurred in Palm Beach County, Florida. Accordingly, venue is proper in Palm Beach County in the Fifteenth Judicial Circuit pursuant to the provisions of the Act and Sections 47.011, Florida Statutes (2013). 4. All actions material to this Complaint have occurred within four years of filing of this action. 5. All conditions precedent to this action have been performed or have occurred. PLAINTIFF 6. Plaintiff is an enforcing authority of Chapter 501, Part II, Florida Statutes (2013) and is authorized to bring this action and to seek injunctive and other statutory and civil relief pursuant to that chapter. 7. Plaintiff conducted an investigation of the matters alleged herein and has determined that this enforcement action serves the public interest, as required by Section 501.207(2), Florida Statutes (2013). DEFENDANT 8. Defendant BOATS OF FLORIDA, INC. is an inactive Florida corporation administratively dissolved in September 2011; reincorporated in October 2012; and again dissolved in September 2013 for failing to file an annual report. BOATS OF FLORIDA has a principal place of business listed at 1501 Broadway Ave., Riviera Beach, Florida 33404. 2
9. Upon information and belief, BOATS OF FLORIDA continues to hold itself out and conduct business as a legitimate corporation. 10. Defendant EZ BOAT SALES INC., is a Florida corporation with its principal place of business at 1501 Broadway Ave., Riviera Beach, Florida 33404 (the same address as BOATS OF FLORIDA). 11. Defendant LOUIS RIVERA ( RIVERA ) is a Florida resident, over the age of 18 and is or was at all material times to this action the owner, director, and principal of BOATS OF FLORIDA, INC. and EZ BOATS INC. 12. At all times material to this action, Defendants were engaged in trade or commerce as defined in Section 501.203(8), Florida Statutes (2013). FACTUAL ALLEGATIONS 13. Defendants are in the business of selling, repairing, and maintaining used boats and vessels. 14. Defendants enter consignment agreements with boat owners who are looking to sell their boats. Defendants offer to store and maintain the boats, and use best efforts to find buyers. Defendants retain a commission if the boat is sold. 15. Defendants have entered into numerous exclusive listing and maintenance agreements with Florida consumers for the sale and / or maintenance of the consumers used boats. 16. The consignment agreements contemplate, among other things, a minimum price the boat owner may sell the boat, the method Defendants would be paid a commission, and termination provisions. 3
17. Defendants represented they would use their best efforts to sell the boats, and would return the boats upon termination pursuant to the terms of the agreement. 18. Defendants also offered maintenance and repair services, including engine installation, to boat owners. 19. After executing the agreements and taking possession of the boats, Defendants would sell the boats, often without transferring title, and then misrepresent to the owners when and if the boat had actually been sold. 20. For example, in May 2010 a Florida consumer entered an agreement with RIVERA and BOATS OF FLORIDA, INC. to sell a pontoon boat. The agreement stipulated that RIVERA and BOATS OF FLORIDA, INC. would retain a commission of $1,000 if they sold the boat. 21. In January 2011, the Defendants reported to the consumer that the boat had been sold for $11,000. Pursuant to the agreement, Defendants would retain a $1,000 commission, and the consumer would get the remaining $10,000. 22. In fact, the pontoon was sold for $13,000, and the Defendants only paid the consumer $5,725. 23. Defendants misrepresented the final sales prices, thereby increasing the money Defendants pocketed from a sale. 24. Defendants failed to provide the correct sale proceeds to consumers. 25. Defendants refused to return possession of the boats even when appropriate as contemplated by the agreements, and refused to identify the current location the property was held, effectively resulting in theft of the boats. 4
26. Defendants failed to reimburse or only partially reimbursed the affected consumers for the sale of their used boats pursuant to consignment agreements. 27. As of the date of this filing, Defendants deceptive and unfair practices have caused Florida consumers at least $80,321.94 in damages. COUNT I VIOLATIONS OF THE FLORIDA DECEPTIVE AND UNFAIR TRADE PRACTICES ACT, CHAPTER 501, PART II, FLORIDA STATUTES 20. Plaintiff incorporates and re-alleges paragraphs 1 through 27 above as if fully set forth hereinafter. 21. Section 501.204(1) provides that [u]nfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful. The provisions of the Act shall be construed liberally to promote the protection of the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce. Fla. Stat 501.202 (2013). 22. Defendants routine misrepresentations, failures to reimburse consumers for the sale of proceeds constitute deceptive and unfair trade practices. 23. Affected consumers detrimentally relied on statements made by Defendants, and on contractual terms negotiated between the consumers and the Defendants. 24. The misrepresentations made by Defendants were material to the consumers entering contracts with the Defendants. PRAYER FOR RELIEF WHEREFORE, Plaintiff prays for relief as follows: 5
25. That the Court adjudge and decree that Defendants have engaged in the conduct complained of herein. 26. That the Court adjudge and decree that the conduct complained of in paragraphs 19 through 27 constitute deceptive and unfair trade practices in violation of the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2013). 27. That the Court issue a permanent injunction enjoining and restraining Defendants and their representatives, successors, assigns, officers, agents, servants, employees, and all other persons acting or claiming to act for, on behalf of, or in active concert or participation with Defendants from continuing or engaging in the unlawful conduct complained of herein. 28. That the Court permanently enjoin Defendant LOUIS RIVERA from owning, operating, directing, or managing any business that involves the sale, maintenance, or use of any type of watercraft or related equipment. 29. That the Court permanently enjoin EZ BOAT SALES INC., and BOATS OF FLORIDA, INC. from entering into consignment contracts for the sales of any boat, vessel, ship, or any other type of water craft. 30. That the Court order Defendants to pay restitution in the amount of eighty thousand, three hundred twenty-one dollars and zero cents ($80,321.00) to aggrieved consumers. 31. That the Court award damages, civil penalties, attorney s fees, prejudgment interest and costs to the Plaintiff for the prosecution of this violation pursuant to Sections 501.2105 and 501.2075, Florida Statutes (2013). 32. Award any such equitable or other relief pursuant to Section 501.207(3), Florida Statutes; and 33. Award such other and further relief as the Court deems just and proper. 6
Dated: April 9, 2014 PAMELA JO BONDI Attorney General /s William B. Armistead WILLIAM B. ARMISTEAD Fla. Bar No. 88535 Assistant Attorney General Consumer Protection Division Department of Legal Affairs Florida Office of the Attorney General Phone: 850-414-3805 Fax: 850-488-1259 7