ISLAND HOPPERS, LTD., Appellant,
v.
Norma Beard KEITH, Personal Representative for the Estate of Marsha K. Beard, Appellee.
District Court of Appeal of Florida, Fourth District.
*969 Steven G. Schwartz of Schwartz & Horwitz, P.A., Boca Raton, for appellant.
Newton Patrick Porter, Tony Korvick of Porter & Korvick, Miami, and Philip M. Burlington of Caruso, Burlington, Bohn & Compiani, P.A., West Palm Beach, for appellee.
POLEN, C.J.
Island Hoppers, Ltd. timely appeals the circuit court's Final Judgment awarding attorneys fees in favor of Tony Korvick and Newt Porter, Esqs., trial counsel for Appellee Norma Beard Keith. This appeal solely concerns the determination of the size of an attorneys' fees award to which entitlement had already been established and affirmed. Island Hoppers, Ltd. v. Register,
Since our decision in the prior appeal arising from this litigation was by way of Per Curiam Affirmance, we briefly address the underlying facts of this litigation in order to provide the proper factual context to the instant opinion. In May of 1995, Norma Beard Keith, as personal representative of the Estate of Marsha Beard ("Beard"), instituted a wrongful death claim against Island Hoppers. The lawsuit primarily alleged Island Hoppers, a dive operator, had provided "negligent dive supervision" while Beard was on one of their sponsored dive charters. Liability was alleged on behalf of Island Hoppers both in its direct capacity, and vicariously, on behalf of two of its employees, party codefendant dive instructors. In August of 1996, Beard's estate filed three demands for judgment, pursuant to Florida Statutes 768.79, against Island Hoppers and the two dive instructors, of one million dollars each, for a total of three million dollars, which were all rejected. Three new demands for judgment were filed on December 22, 1997, seeking $400,000 from each party, for a total of $1.2 million dollars, *970 which were also rejected. The case proceeded to trial in March of 1998.
The jury ultimately returned a verdict in favor of Beard's estate, resulting in a $609,004.50 judgment against Island Hoppers. The Estate moved for its attorneys' fees pursuant to section 768.79.[1] The court held the Estate's recovery was more than 25% greater than the $400,000 demand which Island Hoppers had rejected in December 1997, and awarded the Estate its reasonable attorneys' fees, accruing from December 22, 1997 through the Final Judgment. Island Hoppers appealed the judgment and the attorneys' fees award, both of which were per curiam affirmed by this court. Island Hoppers,
A hearing was held in the circuit court, Judge Brown presiding, to determine the amount of the attorneys' fees award to which the Estate's entitlement had already been established. Trial counsel for the Estate, Korvick and Porter, testified on their own behalf regarding their experience, the nature of the underlying litigation, and the hours and rate they were claiming, by way of testimony and sworn affidavit. They also offered the deposition of Attorney Jeffrey Liggio as an expert fees witness. Liggio primarily opined that the fees sought seemed reasonable, and nothing seemed "out of line." He also opined a risk factor multiplier in the range of 2.25 to 2.5 should be applied to the fee award, as provided under Rowe, Quanstrom, and Bell.[2] Island Hoppers offered the testimony of its own expert, Attorney Fred Fulmer, who opined the hourly rate and number of hours sought were excessive. He also opined a multiplier should not be applied to the fee award, since he believed it would not have been difficult to obtain counsel, where there were so many "personal injury attorneys" in the area.
In its detailed Final Judgment, the court found the hours sought by both attorneys were reasonable, and set Korvick's hourly rate at $300 an hour, and Porter's hourly rate at $250 an hour. This resulted in a lodestar fee award (hours sought × hourly rate to be applied) of $210,850, for the applicable time period. The court also held a contingency risk multiplier of 2.3 should be applied due to a variety of factors which had made success unlikely at the outset. The multiplied fee award equaled $484,955, plus prejudgment interest accruing from the date of the Final Judgment in the underlying litigation.
Island Hoppers raises two points in this appeal which we address in this opinion. First, Island Hoppers contends the trial court erred in admitting the deposition testimony of appellee's only expert fees witness, Liggio, and hence its fee claim lacked the essential element of supportive expert testimony. An award of attorneys' fees must be supported by competent substantial evidence. See Cohen v. Cohen,
At his deposition, Liggio admitted he had spent a scant three hours of preparation in forming his opinion regarding the reasonableness of the fees sought by Korvick and Porter. He further admitted Korvick and Porter had dropped off twenty (20) boxes of litigation materials for his perusal; he reviewed absolutely none of those materials. He stated in forming his opinion he had reviewed the following materials: a jury reporter verdict blurb, the motion for fees and the attached affidavits, the fee contract between Korvick, Porter, and the Estate, closing arguments and opening statements from trial, and the appellate briefs from the prior appeal on the merits. He also stated he had discussed the case with Korvick and Porter, and that he had some experience, albeit limited, with Korvick and Porter, and had discussed their reputations with other lawyers in the community. Island Hoppers argued below, and on this appeal, that this is simply not enough, that Liggio's underlying factual predicate is so lacking that his opinions should not have been entertained by the court.
We begin our analysis by recognizing that allegations that an expert witness lacked a sufficient factual predicate to form an opinion, go to the weight to be given to the evidence (the expert's opinion) rather than its admissibility. See Nat Harrison Assocs., Inc. v. Byrd,
When this issue was raised at the fee hearing, the court took a recess to provide itself an opportunity to personally review Liggio's deposition. The court found Liggio was very familiar with the numerous issues involved in the underlying case, and thus allowed the admission of his deposition as supportive expert testimony. Although we find no abuse of discretion in the lower court's admission of Liggio's opinion, we note the better practice would have been for Plaintiff/Appellee Estate to present an expert fees witness who was notably more familiar with the actual litigation files themselves. Although Liggio was knowledgeable of the issues involved in the underlying litigation, and his own expertise was readily apparent, having been inter alia, President of the Florida Academy of Trial Lawyers (1998-1999), he readily admitted his general lack of familiarity with any of the actual litigation files or materials contained therein, which constituted the basis for the fees sought. This is a murky area where few courts have spoken with a clear voice. Clearly every case is to some degree factually unique, and we can maintain no steadfast black-letter rule which shall control in all situations. Still, we maintain there is a spectrum involved, reflecting various degrees of familiarity with the factual predicate which reflect basic standards of diligence and reasonableness. Liggio's factual predicate in the instant case tends towards the lower end of the spectrum of what this court considers reasonable and acceptable. Nonetheless, where the sufficiency of Liggio's factual predicate went to the weight to be accorded to his expert opinion, we hold the trial court did not abuse its discretion in considering his opinion in reaching its determination *972 of what constituted a reasonable fee.
Notwithstanding the foregoing, we question whether in the words of the preeminent playwright, this is all "much ado about nothing." Though Florida courts have long required the corroborative testimony of an expert "fees witness," we question whether the rule is always the best, or most judicious, practice. We note this practice has existed since at least the 1960s. See, e.g., Lyle v. Lyle,
We recognize expert opinion may play some role in assisting the court in determining the propriety of using a contingency multiplier, discussed, infra; the multiplier determination rests upon the necessity of such in the market and many judges, both trial and appellate, who have spent a number of years on the bench may be somewhat unfamiliar with the current state of the market, i.e., what factors influence the current calculus regarding the decision of counsel to undertake representation. The opinion of an expert as to the current status of the market in this regard may provide some assistance to the judge who must ultimately determine what the market does in fact require, especially since the testimony of counsel seeking the multiplier, regarding the necessity of that multiplier, may be entirely self-serving. We distinguish the more fundamental issues of appropriate hours expended by counsel, and the rates to be applied, issues where the experience garnered from sitting on the bench and *973 presiding over the gamut of the legal profession affords the trial judge greater insight, and a greater understanding, of what constitutes "reasonable."
We are unpersuaded by Island Hoppers's contention that the hours awarded, and hourly rates to be applied, were excessive, and find no abuse of discretion in the trial court's determinations in those regards. Island Hoppers further contends the trial court erred in applying a contingency risk multiplier to the "lodestar" fee award, especially where the attorneys' fees in question were only recoverable pursuant to section 768.79. Due to recent conflict among our sister courts, we write to address this issue, which we maintain to be of great public importance.
In Rowe, our supreme court adopted the federal "lodestar approach" for determining reasonable attorneys' fees for award purposes. The first step in the lodestar process is to determine a reasonable number of hours to be awarded, multiplied by a reasonable hourly rate, the product of which constitutes the "lodestar" amount. Rowe,
This court addressed the applicability of a contingency risk multiplier in the offer of judgment context in Collins v. Wilkins,
Thereafter, a split has arisen among the Districts regarding the propriety of utilizing a contingency risk factor in determining a reasonable fee under section 768.79. In Gonzalez v. Veloso,
"Quaere: Whether any such showing can ever be made, and thus whether a multiplier is ever appropriate, when fees are awardable only when a reasonable offer is not accepted under section 768.79, an eventuality which obviously cannot be anticipated when counsel is obtained." Id. at 64.
Subsequent to Gonzalez, some courts began to shy away from the application of multipliers in the section 768.79 context, primarily on the grounds the parties seeking fees had failed to prove the necessary factual predicated established in Quanstrom, i.e., that the attorney representing the party who made the offer of judgment would not have taken the case, nor would any other competent attorney in that legal community, without the availability of the multiplier. See, e.g., Strahan v. Gauldin,
In Sarkis, the court recognized the plaintiff had made a strong factual showing to support the award of a multiplier under its previous case law. However, the court held multipliers were no longer legally applicable where fees were sought under section 768.79, cursorily adopting the view of Judge Casanueva dissenting in Pirelli Armstrong Tire Corp. v. Jensen,
As discussed, supra, in Collins, upon due inspection of the statutory language of section 768.79, and the relevant rules promulgated by our supreme court, which the statute itself expressly reference, we held the legislature, via section 768.79, had authorized trial courts to consider the application of a contingency risk factor as a criterion in determining a reasonable fee under the offer of judgment statute. See Collins,
Furthermore, we find no logical inconsistency in application of the Quanstrom factual requirements in the offer of judgment context. We recognize whenever a potential client walks through an attorney's door for the first time, a wide array of factors enter the calculus as to whether or not counsel will in fact decide to undertake that representation. Rowe and Quanstrom recognized potential clients whose cases seem to have a relatively low likelihood of success at the outset, may face considerable difficulties in securing counsel, and may often be unable to afford competent counsel. As such, the multiplier was established, to serve as an incentive of sorts, for attorneys to undertake representation where a risk of nonpayment was established. Although an attorney contemplating representation of a particular client can never "know" for certain whether or not entitlement to a fee award under 768.79 will ultimately be established, surely skilled counsel can, contrary to the words of Chief Judge Schwartz in Gonzalez, "anticipate" such. Offers of judgment, as well as requests to apply multipliers, have clearly become part and parcel of litigation in the state of Florida; this court need only look at any monthly docket to recognize such. We find no inconsistency in holding competent counsel can "anticipate" the eventual filing of a 768.79 offer of judgment, "anticipate" the possible entitlement to fees if the statutory prerequisites are met, and "anticipate" the possibility said fee award will be multiplied.[4] Accordingly, we find no logical inconsistency in application of the Quanstrom requirements to the offer of judgment context, and move to consider the application of said requirements to the instant case.
We find no error in the trial court's application of a contingency risk multiplier to the instant case. Significant testimony reflected, and the trial court found, success was "unlikely" at the outset for Beard's estate, in accordance with a multiplier ranging from 2.0 to 2.5 under Quanstrom. Id. at 834. Counsel for the Estate had no means of mitigating the risk of non-payment in this cases where their fees were entirely contingent, and both Korvick and Porter testified they would not have undertaken the representation absent the possibility of a multiplied fee award. Even Liggio, "fees expert" for the Estate, opined a multiplier was required to obtain competent counsel in the relevant market. Relying on the foregoing testimony and her thorough understanding of the underlying litigation (over which she had presided), Judge Brown recited numerous factors which had in fact made success "unlikely at the outset," namely that the decendent's negligence may have contributed to her own death, the medical examiner had been unable to determine the cause of the accidental drowning, the *976 decedent may have had a pre-existing heart condition which may have contributed to sudden cardiac death, issues of nonparty fault, and the fact that no certified diver had previously won a verdict based upon negligent supervision of a PADI certified diver. Thus, we hold the trial court did not abuse its discretion in determining a multiplier of 2.3 was warranted in the instant case.
We recognize both the First and Second Districts have recently upheld the legal validity of application of a multiplier in conjunction with a fee award under section 768.79. See Lewis v. Bondy,
AFFIRMED.
STONE, J., concurs.
GROSS, J., concurs specially with opinion.
GROSS, J. concurring specially.
I concur with the result of the majority opinion and write separately to emphasize that the rule requiring an independent "expert" in every attorney's fee case rests on shaky theoretical grounds.
This court has often held that an award of attorney's fees must be "substantiated" by expert testimony in addition to that of the lawyer claiming the fee. See Tanner v. Tanner,
Examination of these cases reveals that the rule requiring the testimony of an independent expert traces back to Lyle v. Lyle,
A later case justified the rule in terms of lawyers' public relations:
Implicit in the rule that an attorney's fee must always be proved through the presentation of testimony is that such a requirement is necessary to maintain the image of lawyers in the eyes of the public.
Lafferty v. Lafferty,
Since the 1964 decision in Lyle, courts have been called upon to set attorney's *977 fees in a variety of settings. The earlier cases seem largely confined to domestic relations, an area engendering strong feelings among the litigants. In this context, the requirement of an expert on attorney's fees insulated a trial court from criticism by providing an objective basis for an award that otherwise might have been perceived by the losing party as one more dose of punishment.
Statutes such as sections 57.105 and 768.79, Florida Statutes (2001), have expanded the situations in which courts are called upon to award attorney's fees. Attorney's fees is the single most litigated issue in civil courts. As a result, trial courts are adept at handling this issue. After six months on the civil bench, a judge has heard enough testimony to qualify as an expert on the reasonable value of legal fees in his or her community. The trial judge has also had the benefit of observing the legal work first hand in the case in which fees are sought.
Recognizing the expertise of trial judges in this area, we have held that a "trial court was not bound by the testimony of [an] expert as to the amount of a reasonable attorney's fee, even though there was no opposing expert." Baldwin Piano & Organ Co. v. Dote,
If a trial court is not bound by an attorney's expert testimony, then the judge's discretion on whether to admit such testimony must necessarily be very broad. I agree with the majority that there was no abuse of discretion in the trial court allowing attorney Jeffrey Liggio to testify.
I also agree with the majority that a hard and fast rule requiring the testimony of an expert in every case is unnecessary. Each party should decide for itself whether securing the testimony of an outside expert will allow it to present a better case.
NOTES
Notes
[1] See § 768.79(6)(b), Fla. Stat. (1990)("If a plaintiff serves an offer which is not accepted by the defendant, and if the judgment obtained by the plaintiff is at least 25 percent more than the amount of the offer, the plaintiff shall be awarded reasonable costs, including investigative expenses, and attorney's fees, calculated in accordance with the guidelines promulgated by the Supreme Court, incurred from the date the offer was served.").
[2] Fla. Patient's Compensation Fund v. Rowe,
[3] The controlling version of the statute in the instant case contained the exact same language as that examined in Collins. The instant underlying suit was instituted in 1995; section 768.79 was not amended from 1990 until 1997. See Metropolitan Dade County v. Jones Boatyard, Inc.,
[4] We recognize an inconsistency has arisen in this regard due to the split among the Districts. For example, counsel practicing in this District could "anticipate" entitlement to a multiplied fee award (pursuant to section 768.79), whereas counsel practicing in the Fifth could not reasonably "anticipate" such. As such, we recognize the need to certify the existent conflict in hopes of obtaining statewide consistency.
