Martin Goldberg of Lash & Goldberg in Miami. Courtesy photo.

The Florida Supreme Court reined in a special tax district, ruling that state law gives Halifax Medical Center no right to build a hospital outside district boundaries.

Miami-based Lash & Goldberg partner Martin B. Goldberg brought the case for Daytona Beach resident and former Ponce Inlet Mayor Nancy Epps, arguing Halifax couldn't use money from taxpayers in one district to build and run a 96-bed hospital in another.

Epps sued in 2016, claiming the project violated Florida's Constitution and that it wouldn't serve the residents who were footing the bill. According to the complaint, the venture is estimated to cost between $60 million and $75 million, most of which will come from taxes and public funds.

Ironically, Halifax had spent six figures defending the suit within its first year. The company has been designated a special tax district since 1925, created by the Florida Legislature to develop medical facilities across its district, which covers various areas in Volusia County. Despite legal red tape, the project is underway at Interstate 4 and State Road 472 in Deltona.

Defense attorneys Elliot H. Shercker, Brigid F. Cech Samole and Katherine M. Clemente of Greenberg Traurig in Miami did not immediately respond to requests for comment. But Halifax has pushed back throughout, arguing it had the authority to build the hospital and has operated outside the bounds of its tax district for more than 30 years.

Halifax also argued the Legislature removed geographic restrictions from its operations in 1979, and pointed to the Enabling Act and an Interlocal Act, which it claims allow broad expansion powers.

The case prompted amicus briefs or "friends of the court" filings from other special tax districts, including South Broward Hospital District, known as Memorial Healthcare System. Like Halifax, they worried the court could block them from operating outside their districts altogether.

The high court analyzed the acts and sided with Volusia Circuit Judge Christopher France, who'd denied Halifax's bond validation. But it reserved judgment on the broader issue of Halifax's powers, finding the court wasn't the right forum for policy decisions about special districts.

The way Goldberg sees it, the ruling validates what Epps has been saying for years.

"Halifax’s extraordinary claim that it can build a hospital in Deltona has always been totally unfounded," he said. "This decision underscores the important roles citizens and the courts undertake when entities such as Halifax attempt to overstep and ignore the boundaries of their authority."

Goldberg worked on the case with Jason A. Coe, Jonathan L. Williams, Nicholas A. Ortiz and Christopher K. Smith.

It's not a home run, as the Florida House of Representatives passed a bill Wednesday allowing Halifax to use the money it needs for the hospital. The bill isn't final until confirmed by the state Senate and signed by Florida Gov. Ron DeSantis.

Epps said she's pleased with the decision.

"I reiterate my call for Halifax to stop spending funds on constructing a hospital in Deltona and to turn its attention back toward providing health care to its own residents," Epps said.

Justice Alan Lawson wrote the unanimous opinion.

 

Read the full court opinion:

 

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