Edward B. CAUFIELD, et al., Petitioners,
v.
Gino CANTELE, et al., Respondents.
Supreme Court of Florida.
*372 Robert Bruce Snow, Brooksville, FL, for Petitioners.
Dоnald R. Peyton of Peyton Law Firm, P.A., New Port Richey, FL, for Respondents.
Jon H. Anderson and Ralph Artigliere of Anderson & Artigliere, P.A., Lakeland, FL, for Academy of Florida Trial Lawyers, Amicus Curiae.
QUINCE, J.
We have for review the Fifth District Court of Appeal's opinion in Caufield v. Cantele,
FACTUAL AND PROCEDURAL BACKGROUND
Edward and Rose Caufield (the Caufields) entered into a contract with Gino and Armando Cantele (the Canteles) to sell to the Canteles a mobile home park located in Hernando County, Florida. Closing on the sale occurred and title was passed to the Canteles in 1993. In 1995, the Canteles filed a complaint in the Circuit Court for the Fifth Judicial Circuit, alleging concealment of defects and fraudulent misrepresentations as to the condition of a sewer plant located on the property. The Caufields filed a motion to dismiss and a motion to strike the complaint, claiming that the complaint alleged fraud and breach of contract in a single count. The Caufields included a general prayer for attorney's fees in the wherefore clauses of both motions. In 1996, the trial court entered an order resolving both motions by treating the complaint as one which asserted a single claim for intentional misrepresentation. In their responsive plеading, the Caufields included another general prayer for attorney's fees. After the Canteles' initial counsel withdrew and new counsel failed to appear at a pretrial conference, the Canteles voluntarily dismissed their complaint.
The contract contained a provision which entitled the prevailing party to costs and attorney's fees in connection with any litigation "arising out of" the contract. Pursuant to the provision, the Caufields filed a motion in the trial court for costs and attorney's fees. The trial court entеred an order denying the Caufields' request for attorney's fees for two reasons. First, the trial court concluded that the Caufields had failed to plead for attorney's fees as required by Stockman v. Downs,
The Caufields sought review of the trial court's order by plenary appeal in the Fifth District Court of Appeal. In addition to affirming the trial court's determination that the Caufields did not properly plead for attorney's fees and that the litigation did not arise out of the contract, the Fifth District addressed, sua sponte, the jurisdictional issue of whether plenary appeal was the proper method of review.
The Fifth District held that a judgment denying attorney's fees entered after a voluntary dismissal was properly reviewed by plenary appeal. As to this holding, the Fifth District certified conflict with decisions of other district courts, which have held that under this Court's decision in Chatlos v. City of Hallandale,
DISCUSSION
The Fifth District certified conflict as to whether district courts may review, by plenary appeal, a trial court's order determining attorney's fees and costs after voluntary dismissal of a complaint. We recognize that district courts are courts of limited jurisdiction and may only exercise the jurisdiction conferred upon them by the Florida Constitution. See Clement v. Aztec Sales, Inc.,
In Chatlos v. City of Hallandale, this Court discussed the ways in which a cost determination could be reviewed on plenary appeal and certiorari by the district courts:
If the cost determination is entered in the final judgment or is made subsequent to the rendition of the final judgment but prior to timely appeal from that judgment, plenary appeal from the final judgment ... will bring the cost order to the appellate court.... Finally, in аppropriate circumstancesas in the instant case wherein the order was entered following a non-final and unappealable voluntary nonsuitwrit of certiorari may lie as a means of securing review.
Chatlos,
Under the Florida Constitution, district courts have jurisdiction to hear plenary appeals, as a matter of right, only from final judgments and orders of the trial courts. See art. V, § 4(b)(1), Fla. Const. Thus, district courts may only review a cost determination by plenary appeal if that determination is a final judgment or order of the trial court. Therefore, in the instant case, the issue of whether the Fifth District had jurisdiction to review the trial court's order on plenary appeal turns on whether an order determining costs after a voluntary dismissal is final.
A final judgment is one which ends the litigation between the parties and disposes of all issues involved such that no further action by the court will be necessary. See Joannou v. Corsini,
However, we are not persuaded by any of these reasons. The mere fact that an action for costs and fees is incident to the merits of the original case does not preclude an order on these issues from being a final decision. See Clearwater Federal Savings & Loan Ass'n v. Sampson,
Moreover, the additional judicial action in the second and third scenarios is prompted by a subsequent commencement of litigation by one of the parties. Under rule 1.420(d), after a voluntary dismissal, costs are to be assessed and a judgment *376 entered for costs in that action. See Fla. R. Civ. P. 1.420(d). Costs are not assessed by the court in which subsequent litigation is commenced; rather, rule 1.420(d) provides that costs are to be assessed immediately after a dismissal is entered by the court issuing the voluntary dismissal and that any subsequent lawsuit on the same claim must be stayed by the second court until all of the costs awarded in the initial lawsuit are fully paid. See City of Hallandale v. Chatlos,
The Fifth District reasoned that the differences between plenary appeal and certiorari review support the propriety of reviewing such decisions via plenary appeal. See Caufield,
In the instant case, the Fifth District reviewed the trial court's order determining costs and fees in the voluntarily dismissed action by plenary appeal. District courts have constitutional jurisdiction to review final judgments of the trial courts by plenary appeal. See art. V, § 4(b)(1), Fla. Const. Because the trial court's determination *377 of costs and fees was final, we hold that the Fifth District propеrly exercised its constitutionally conferred jurisdiction by reviewing the trial court's order by plenary appeal. Therefore, we approve the Fifth District's decision on this issue and hold that the proper method for review of a determination of costs after a voluntary dismissal is by plenary appeal. Accordingly, we recede from decisions which have held that an order determining costs after a voluntary dismissal is a nonfinal and unappealable order. See Chatlos v. City of Hallandale,
We now turn to the remaining issues raised in this review proceeding.[5] The Fifth District held that the Caufields' requests for attorney's fees failed to meet the standard for claiming attorney's fees set forth in Stockman v. Downs,
In the instant case, however, the Fifth District held that Stockman actually requires that a party specifically plead the basis for the entitlement to fees. See Caufield,
However, this Court's holding in Stockman does not expressly require a specific pleading of the statutory or contractual basis of a claim for attorney's fees. See Stockman,
Lastly, we address the Fifth District's determination that the Caufields were not entitled to attorney's fees under a prevailing-party provision in their contract with the Canteles. See Caufield,
The Fifth District relied on its decisions in Hopps v. Smith,
The Caufields аnd the Florida Academy of Trial Lawyers argue that the Fifth District's decision in this case as well as its earlier cases sets a poor policy which denies persons access to the Florida courts. They argue that if only contract causes of action and not tort causes of action can "arise out of" a contract, then courts will ignore the actual intent of the parties. The Caufields rely on this court's opinion *379 in Katz v. Van Der Noord,
In Katz, this Court approved the award of attorney's fees under a prevailing party provision of a contract which contained the "arising out of the contract" language even though the action involved recision of the contract. Relying on Katz, the Fourth District in Kelly opined:
Although Katz spoke of an attorney's fee provision in the context of a recision action, its rationale is equally applicable to an action at law for fraudulent misrepresentation. The same deceptive conduct might justify relief under either cause of action. If the attorney's fee provision of a contract is to be construed objectively, it would seem that "litigation arising out of this Contract" should include, in addition to breaches and nonperformance of the contract, those situations where the party was fraudulently induced into entering the contract, because such conduct is morally more repugnant that a simple breach. The distinction drawn by Dickson and Location 100that a misrepresentation inducing a contract does not "arise" out of the contractis at odds with the concept of justice that underlies the holding in Katz.
Foreign courts have held that actions for fraudulent concealment or misrepresentation in connection with a contract fall within attorney's fee provisions of the contract. 3250 Wilshire Blvd. Bldg. v. W.R. Grace & Co.,990 F.2d 487 (9th Cir.1993); Childers v. Edwards,48 Cal. App.4th 1544 ,56 Cal.Rptr.2d 328 , 331 (1996); Xuereb v. Marcus & Millichap, Inc.,3 Cal.App.4th 1338 ,5 Cal.Rptr.2d 154 (1992); Sperry v. Bolas,786 P.2d 517 (Colo.Ct.App.1989).
Id. at 673 n. 1.
Additionally, in Telecom Italia, SpA v. Wholesale Telecom Corp.,
In this case, the attorney's fee clause provided that fees be awarded to the prevailing party as the result of any litigation "arising out of" the contract. Under the Eleventh Circuit's reasoning in Telecom Italia and the Fourth District's reasoning in Kelly, the fraudulent misrepresentation complained of in this case could be correctly characterized as a tort stemming from or arising out of the failure of one party to carry out its contractual duty to reveal defects in the property. Had there been no contract, the ensuing misrepresentation would not have occurred. Therefore, the existence of the contract and the subsequent misrepresentation in this case are inextricably intertwined such that the tort complained of necessarily arose out of the underlying contract. As a result, the contractual provisions, including the prеvailing party clause, should be given effect.
Based on the foregoing, we hold that plenary appeal is the proper method of review of attorney fee issues after a voluntary dismissal in the trial court. We also hold that the contractual or statutory basis *380 for the attorney fee need not be specifically pled and failure to so plead does not result in a waiver of the claim. Therefore, we approve in part and quash in part the decision under review and remand this case to the Fifth District for further proceedings consistent with this opinion.
It is so ordered.
ANSTEAD, C.J., and SHAW and LEWIS, JJ., concur.
PARIENTE, J., concurs in result only with an opinion.
WELLS, J., concurs in part and dissents in part with an opinion, in which HARDING, Senior Justice, concurs.
PARIENTE, J., concurring in result only.
This case involves the right of the Caufields (the defendants), who were the sellers of a mobile home park, to appeal the denial of their claim for attorney's fees following the voluntary dismissal of the complaint by the Canteles (the plaintiffs), who were the purchasers. I agree with Judge Sharp's analysis as to why this specific category of orders should be treated as final appealable orders. Specifically, I agree that because orders on attorney's fees after a voluntary dismissal "determine the substantive rights of a party to attorney's fees definitely and with finality," these orders should be reviewable under rule 9.110. Caufield v. Cantele,
I concur in result only because I do not agree with the majority's reliance on what I consider to be overly broad language in the pre-1977 case of Clearwater Federal Savings & Loan Ass'n v. Sampson,
As to whether the defendant's general claim for attorney's fees satisfies the notice requirement of Stockman v. Downs,
Lastly, I agree that the complaint as filed against the defendants/sellers was for breach of contract and the alleged misrepresentations claimed by the plaintiffs/buyers arose in connection with the contract. Although based on an intentional misrepresentation, the court order stated that the relief sought was for monetary damages to correct latent defects in the sewer treatment plant. Thus, I would uphold the right to claim attorney's fees based on the Fourth District's reasoning in Kelly v. Tworoger,
WELLS, J., concurring in part and dissenting in part.
I concur in the affirmance of the Fifth District as to the plenary appeal issue.
I dissent as to the reversal of the Fifth District on the other two issues. In respect to the pleading issue, the majority's decision is contrary to this Court's requirement that a motion for attorney fees be pled with specificity as to the basis upon which fees are authorized.
In respect to the third issue, the majority sets aside many years of precedent, which does not allow attorney fees to be awarded in tort claims. I believe that the ignoring of this precedent is error.
HARDING, Senior Justice, concurs.
NOTES
Notes
[1] See generally Stockman v. Downs,
[2] Costs were not specifically addressed in the trial court's order denying the Caufields' motion for fees and costs, nor did the Caufields raise denial of costs in their brief; therefore, costs are not addressed.
[3] Only authorized motions for rehearing will delay the rendition of the trial court's order, and, in turn, toll the time for filing a petition for certiorari. See Fla. R.App. P. 9.020(h). Because motions for rehearing are not authorized as to nonfinal orders, they can not delay the rendering of a nonfinal order. See Wagner v. Bieley, Wagner & Assocs.,
[4] See also State v. Furen,
[5] The Fifth District only certified conflict as to its decision on the method of review. See Caufield,
[6] In Stockman, this Court recognized an exception to this rule: "Where a party has nоtice that an opponent claims entitlement to attorney's fees, and by its conduct recognizes or acquiesces to that claim or otherwise fails to object to the failure to plead entitlement, that party waives any objection to the failure to plead a claim for attorney's fees."
