22ND Century Properties, LLC and David F. Damerau v. FPH Properties, LLC
160 So. 3d 135
Fla. Dist. Ct. App.2015Background
- Two Florida LLCs entered a joint venture with FPH Properties to buy renovate and sell three South Florida homes for profit; FPH fronted up to $500,000 per property and was to be repaid with interest, with profits shared after certain priorities, and Damerau guaranteed the obligations.
- Property 3 was not sold; Damerau resided there as his homestead and the other two properties were sold with profits later misreported by appellants.
- FPH later discovered falsified HUD settlement statements and final accounting, uncovering fraud designed to inflate 22nd Century’s share and charge FPH for unrelated expenses.
- FPH amended its complaint to add punitive damages and fraud after discovery; the case spanned six years with extensive discovery and multiple motions, culminating in a bench trial in August 2012.
- The trial court awarded FPH $631,969.50 in attorney’s fees (Oct 2010–Aug 2012) plus $6,240 in expert costs, finding fees warranted due to appellants’ discovery misconduct and fraudulent activity.
- On appeal, the Fourth District affirmed the final judgment and the fee award, upholding the use of the lodestar method and related adjustments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the attorney’s fee award was an abuse of discretion | Damerau argues fees include excessive/duplicative hours | FPH contends hours were necessary due to complexity and misconduct | No abuse; hours reasonably expended given complexity and misconduct |
| Whether accounting-related hours were correctly included | Accounting was not ordered, thus hours should be excluded | Accounting was intertwined with other claims and necessary to prove damages | Hours tied to common core of facts and interrelated claims were recoverable |
| Whether the fee award properly allocated time across intertwined claims | Time on non-prevailing counts should be excluded | Related claims and discovery efforts were inseparable from prevailing claims | Proper under Rowe; interrelated activities allowed recovery based on overall success and intertwined facts |
Key Cases Cited
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (full compensatory fee when results are excellent)
- Florida Patients' Compensation Fund v. Rowe, 472 So.2d 1145 ( Fla. 1985) (lodestar method and reasonable hours; billing judgment)
- Glantz & Glantz, P.A. v. Chinchilla, 17 So.3d 711 (Fla. 4th DCA 2009) (guides reduction of hours for duplicative work; fee opponent must specify hours)
- Centex-Rooney Constr. Co. v. Martin Cnty., 725 So.2d 1255 (Fla. 4th DCA 1999) (rowe factors; assignment of hours to issues; reasonableness of fees)
- River Bridge Corp. v. American Somax Ventures, 76 So.3d 986 (Fla. 4th DCA 2011) (intertwined claims; allocation of fees when issues are interrelated)
- Durden v. Citicorp Trust Bank, FSB, 763 F. Supp. 2d 1299 (M.D. Fla. 2011) (intertwined work is compensable when claims share a common core of facts)
- Effective Teleservices, Inc. v. Smith, 132 So.3d 335 (Fla. 4th DCA 2014) (claims are separate when they could support independent actions; otherwise fee may be shared)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (reiterated; see above)
- ACLU of Ga. v. Barnes, 168 F.3d 423 (11th Cir. 1999) (fee-shifting standards and specificity in billing disputes)
