Studio wins approval to reopen, with caveat

An appeals court rules Dance Place can serve customers who have paid. But it can't charge them any more money or sign up new members.

By RICHARD DANIELSON, Times Staff Writer
© St. Petersburg Times
published June 20, 2002

SAFETY HARBOR -- The doors at the Dance Place, shut last week by an emergency order from the state, were cracked open Wednesday -- but only for existing students who have already paid for lessons.

In response to an appeal from the Dance Place, the 2nd District Court of Appeal in Lakeland issued a one-page ruling allowing the studio "to provide only the services for which its customers have previously paid."

But first Dance Place must post a $50,000 bond with the state Department of Agriculture and Consumer Services.

And even if it posts the bond, the studio still is banned from soliciting new business or charging existing customers any more money.

"Under no circumstances," the court said, "may the Dance Place collect or accept remuneration in any form from existing or potential customers."

Neither Dance Place owner Michael Pasquarelli nor studio attorney Lee Atkinson returned several calls for comment Wednesday afternoon. State officials said they plan to continue to try to shut down the dance studio altogether.

"We by no means have abandoned our effort," Department of Agriculture and Consumer Services spokesman Terry McElroy said. "We're committed to seeing this company's license both suspended and ultimately revoked."

State officials also said they will investigate a tip that the Dance Place took one or more clients on a dance trip to the Catskills after the state served its cease-and-desist order June 12.

"We are investigating that," said Liz Compton, Department of Agriculture director of public information. "What we need to determine is if it happened, when it happened. We are definitely aware of the allegation."

If the state determines that the studio took students on the trip in violation of the order closing it down, the state will pursue a third-degree misdemeanor charge against the studio, Compton said.

The studio, which was doing business at 550 Main St., Safety Harbor, was shut down after state investigators said it used coercive, high-pressure sales tactics to sell expensive dance lessons and vacation packages to mostly elderly clients. A second Dance Place studio at 2135 Drew St., Clearwater, closed in March. The state is seeking $85,000 in fines.

The state's investigation followed a St. Petersburg Times story in January about a 75-year-old Palm Harbor widow who says she was pressured into spending $257,000 at the studio during three weeks in December. That led 16 people to file complaints against the studio and prompted a task force of local and state agencies to open a separate criminal investigation into the business.

The state accused Dance Place employees of violating Florida's Dance Studio Act by using high-pressure sales tactics. Officials also alleged the studio failed to furnish promised dance lessons, did not properly disclose rates, and had customers sign uncompleted contracts.

-- Times staff writers Katherine Gazella and Shannon Breen contributed to this report.

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