Monroe County must unfreeze two bank accounts belonging to its former Marathon/Big Pine Key animal shelter contractor, the 3rd District Court of Appeal ruled Wednesday.

A judge last year allowed the county to freeze the Stand Up For Animals (SUFA) accounts, containing $260,000, after a county audit discovered Director Linda Gottwald had misspent money. The county also filed a lawsuit against SUFA to reclaim thousands of dollars of county money.

The lawsuit was an adequate alternative legal remedy for the county; therefore, it was not entitled to freeze the funds through a preliminary injunction, the court stated in its ruling.

"Even where the party seeking injunctive relief alleges that the opposing party may dissipate bank assets, a judgment for money damages is adequate and injunctive relief is improper, notwithstanding the possibility that a money judgment will be uncollectable," the court ruled.

SUFA had appealed Judge David Audlin's previous court order denying its request to unfreeze those accounts.

"SUFA is extremely happy that the 3rd District Court of Appeal has vindicated our position that this injunction was improper," Gottwald wrote in an email to The Citizen Wednesday. "SUFA is now eager for the opportunity to resolve the remaining issues with Monroe County and address the incorrect allegations and claims that have been made so that we may move forward in our goal of helping homeless and abused animals."

The court's ruling did not vindicate SUFA, County Attorney Suzanne Hutton pointed out. Whether SUFA or the county is entitled to any of the funds remains unresolved pending the outcome of the county's lawsuit.

The lawsuit, which was on hold pending SUFA's appeal of Audlin's ruling, now will proceed to trial, unless the county and SUFA can agree on a settlement. SUFA last month rejected a county offer that the money in the accounts be held in escrow for use by the current Middle Keys shelter operator.

If the county prevails in the lawsuit, the appeals court ruling could make collecting the money more difficult.

"While we are disappointed in the court's decision, we respect it and will be seeking direction on how to proceed from the County Commission at the next BOCC meeting" on Wednesday, Hutton said. "It remains to be seen whether SUFA will use the money in the unfrozen accounts for the benefit of animals in the Middle Keys as advertised in most of its fundraising materials, or for other purposes."

The county hired SUFA to serve as its animal control agency in the Middle Keys, collecting donations and service fees to run the shelter on the county's behalf. The audit found Gottwald had spent:

• $3,747 for three months' rent for her home, which she sublet to interim successor Shari Blessing after Gottwald moved to Michigan;

• $2,900 for a fence at the Second Chance Ranch in Michigan, which Gottwald opened;

• $1,154 for a legal bill for the Michigan shelter;

• $715 for airline tickets to Fort Myers and Fort Lauderdale for unknown reasons; and

• $628 for six personal water bills.

Gottwald also used a county truck she leases to drive five dogs to the Michigan shelter, the audit states.

tohara@keysnews.com