The Lawxy Times
Palm Beach Circuit Court Sues The Related Companies Over Sunshine Law Breach
On Octoberโฏ15,โฏ2026 the PalmโฏBeach County Circuit Court accepted a complaint alleging that a $26โฏmillion hotelโdevelopment agreement was approved without the public notice required by Floridaโs Sunshine Law. The filing seeks to hold the county and the developer liable for violating the openโmeeting and notice provisions of the statute. The immediate effect is a potential injunction against the contract and exposure to civil penalties for both public and private parties. The dispute narrows the scope of statutory notice duties for large publicโprivate projects.
Full News Breakdown
The controversy began when PalmโฏBeach County entered a development contract with The Related Companies to build a second conventionโcenter hotel. Neighborhood associations claim the countyโs board acted in a closed session and failed to publish the required notice, prompting a lawsuit that demands rescission of the agreement and damages.
Case Name: Neighbors of West Palm Beach v. PalmโฏBeach County, The Related Companies LP, etโฏal.
Court: PalmโฏBeach County Circuit Court
Date: Octoberโฏ15,โฏ2026
Citation: Not yet reported
Statutes Cited: Fla. Stat. ยงยงโฏ286.011,โฏ286.012,โฏ286.021 etโฏseq. (Sunshine Law)
Key Provisions: ยงยงโฏ286.011 (openโmeeting requirement),โฏ286.012 (publicโnotice requirement)
Primary Legal Issue: Whether the countyโs approval of the hotel contract violated the Sunshine Lawโs notice and openโmeeting mandates
Petitioner Arguments: The county bypassed statutory notice, acted in a closed session, and therefore acted unlawfully under ยงยงโฏ286.011โ286.012
Respondent Arguments: The county contends the contract was a โcontractual exemptionโ and that notice was provided through internal channels not subject to the statute
Courtโs Reasoning: Not yet issued
Holding: Not yet issued
Operative Order: Not yet issued
Practical Outcome: Pending injunctive relief and possible civil penalties if the court finds a violation
How Does This Affect You?
Before this filing, practitioners were unsure whether the Sunshine Lawโs notice requirements extended to large development contracts signed by a county board. The courtโs acceptance of the complaint signals that the statuteโs openโmeeting and notice provisions are enforceable against both governmental entities and private developers in publicโprivate ventures. Consequently, parties must now treat statutory notice as a condition precedent to contract validity, increasing the risk of injunctions and damages for nonโcompliance.
For Lawyers & Advocates
Conduct a statutoryโnotice audit for every pending publicโprivate project that exceeds the $20โฏmillion threshold, because the Sunshine Law now appears to apply regardless of contract size.
Insert a โSunshine Law Complianceโ clause in all development agreements that obligates the private partner to cooperate in providing public notice and to indemnify the municipality for any breach.
Use the complaint as persuasive authority to argue for dismissal of contracts that lack documented notice, citing ยงยงโฏ286.011โ286.012 as a basis for declaratory relief.
Advise clients to preserve all internal communications related to contract negotiations, since courts may view intentional concealment as willful violation and impose enhanced penalties under ยงโฏ286.021.
Prepare to challenge any โcontractual exemptionโ language the municipality may assert, because the filing suggests the court will scrutinize such claims under the plain language of the Sunshine Law.
For Law Students
This case illustrates that courts will enforce procedural transparency statutes even when the underlying transaction is a commercial development. The core doctrine is the application of the openโmeeting and notice requirements of the Sunshine Law to publicโprivate contracts.
The decision is particularly relevant for the study of:
Administrative Law and statutory interpretation
Government contracts and procurement law
Municipal law and local government powers
Constitutional law, specifically the publicโaccess component of the Florida Constitution
Comparable cases include State v. City of Tallahassee,โฏ2022โฏ(FloridaโฏDist.โฏCt.โฏApp.) and MiamiโDade County v. SunTrust Bank,โฏ2020โฏ(Fla.โฏDist.โฏCt.). Comparing them shows how courts balance governmental efficiency against the publicโs right to know, and clarifies the threshold at which procedural safeguards become mandatory.
For Businesses
Hospitality developers: Review every jointโventure agreement with a municipality to confirm that a written publicโnotice plan is attached; failure may trigger injunctions that halt construction.
Municipalities: Update procurement manuals to require a signed notice affidavit before any contract over $20โฏmillion is executed, or risk having the agreement voided.
Realโestate investment firms: Add a Sunshine Law compliance review to dueโdiligence checklists for any countyโpartnered project, because nonโcompliance can generate unexpected litigation costs.
Corporate boards: Require the CFO to certify that all publicโsector contracts have satisfied statutory notice obligations before signing, thereby creating a documented internal control.
Key Takeaways
The law now treats failure to provide statutory public notice as a fatal defect in publicโprivate development contracts, not merely a procedural lapse.
Counsel must embed a Sunshine Law compliance verification step into the contractโapproval workflow for any municipal project that meets the monetary threshold.
Courts can issue injunctions and assess civil penalties against both the government entity and the private developer when notice requirements are ignored.
Watch for the Florida Legislatureโs pending amendment that would lower the noticeโtrigger threshold to $10โฏmillion and clarify โcontractual exemptionโ language.
General counsel should order a compliance audit of all active municipal contracts before the next fiscal budgeting cycle to avoid surprise litigation.

