Key West Seaside, LLC v. Certified Lower Keys Plumbing, Inc.
208 So. 3d 718
| Fla. Dist. Ct. App. | 2015Background
- Seaside appeals an order denying attorney’s fees and costs under Florida’s offer of judgment statute (768.79) and Rule 1.442 after a final judgment of no liability for Seaside.
- Certified Lower Keys Plumbing, Inc. sued five defendants, including Seaside and the general contractor; all defendants served offers of judgment which Certified did not accept.
- The trial court entered a no-liability judgment for Seaside, and found that the lien transfer to the Travelers bond precluded liability.
- The trial court denied fees citing that Seaside’s counsel represented a co-defendant and argued against Seaside; no bad-faith finding was made.
- On appeal, Seaside argues it was entitled to fees because the prerequisites of 768.79 were met and no bad-faith finding was required absent such a finding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in denying fees without a bad-faith finding | Seaside entitled to fees once prerequisites met; no bad-faith finding necessary | Fees can be disallowed if good-faith finding supports bad faith | Yes; trial court erred in denying fees without bad-faith finding |
| Whether the offer of judgment was made in good faith | Offer was made on a reasonable basis given no-liability outcome | Offer lacked good-faith basis due to alignment with the general contractor | No; record supports entitlement to fees; remanded to determine reasonable fees |
Key Cases Cited
- Schmidt v. Fortner, 629 So.2d 1036 (Fla. 4th DCA 1993) (establishes entitlement to fees when prerequisites fulfilled; bad faith only as disqualifier)
- Mesa v. Ocean Enters., Inc., 803 So.2d 908 (Fla. 4th DCA 2002) (error to deny fees without bad-faith finding)
- Downs v. Coastal Sys. Intl., Inc., 972 So.2d 258 (Fla. 3d DCA 2008) (absence of bad-faith finding requires reversal)
- Vines v. Mathis, 867 So.2d 548 (Fla. 1st DCA 2004) (bad-faith finding required when prerequisites satisfied)
- Mateo v. Rubiales, 717 So.2d 133 (Fla. 4th DCA 1998) (necessity of good-faith finding to deny fees)
- Wagner v. Brandeberry, 761 So.2d 443 (Fla. 2d DCA 2000) (support for need of good-faith basis in some contexts)
- Dep’t of Highway Safety & Motor Vehicles v. Weinstein, 747 So.2d 1019 (Fla. 3d DCA 1999) (good-faith basis recognized where appropriate)
- Bank One, Corp. v. Bornschein, 987 So.2d 172 (Fla. 4th DCA 2008) (transcripted record needed to assess abuse of discretion on bad-faith claim)
- Riviera Beach P’ship Ltd. v. S.I. Goldman Mech. Contractor, 345 So.2d 783 (Fla. 4th DCA 1977) (early principle on offer of judgment outcomes)
- Allied Gen. Contractors v. Superior Asphalt Co., 397 So.2d 727 (Fla. 5th DCA 1981) (established standards on evidentiary support for fees)
- Deltona Corp. v. Indian Palms, Inc., 323 So.2d 282 (Fla. 2d DCA 1975) (owner-not-a-party in subcontractor suits context)
- W. Plumbing & Heating Co. v. Hurley, 168 So.2d 328 (Fla. 1st DCA 1964) (early bad-faith considerations in fee disputes)
- Applegate v. Barnett Bank of Tallahassee, 377 So.2d 1150 (Fla.1979) (presumption of correctness and burden on appellant on factual issues)