In August 2024, the City of Pembroke Pines, Florida, condemned the Heron Pond Condominiums due to safety concerns. Daniel Stermer was appointed as receiver for the association and petitioned to terminate it. To sell the property, Stermer identified Integra Real Estate, LLC as a stalking horse bidder with a bid of $20.5 million, setting the minimum auction price. Potential bidders were required to submit a packet proving their ability to close. Federated Foundation Trust, a unit owner wishing to bid, failed to submit the correct documentation and was deemed unqualified. After the sale proceedings were removed to federal court, Federated objected to the sale process, alleging a breach of fiduciary duty and lack of due process. The district court reopened the bidding process, offering Federated a chance to submit a nonrefundable deposit of $23.95 million. Federated's principal, Piyush Patel, requested more time to secure funds, but the court denied the request, stating the offer was all or nothing. The court ultimately approved the sale to Integra, finding the process was fair and reasonable.
The Eleventh Circuit focused on the preservation of error doctrine. The court noted that while Federated raised general objections regarding due process and procedural fairness, it failed to clearly articulate these specific arguments in the district court. The opinion states, 'If parties hope to preserve a claim, argument, theory, or defense on appeal, they must first clearly present it to the district court.' Federated did not specifically object to the bidding process on due process grounds in its written objection or during the hearing. Furthermore, the court found that Federated failed to develop its arguments in its appellate briefs or point to controlling authority supporting its claims. The court cited precedent establishing that an appellant abandons a claim when it is raised in a perfunctory manner without supporting arguments. Consequently, the appellate court declined to consider the merits of the due process and coercion claims for the first time on appeal.
The sale of the Heron Pond Condominium property to Integra Real Estate, LLC stands approved. The decision reinforces the strict requirement that parties must explicitly raise specific legal theories in the district court to preserve them for appeal. It also clarifies that appellate courts will not consider arguments that are raised perfunctorily or without supporting authority in briefs. The district court's discretion in managing the sale process and setting deposit requirements was upheld, provided the process was not fundamentally unfair.