Boatright v. Philip Morris USA, Inc.

Procedural entryThis page is a short order in Boatright v. Philip Morris USA, Inc.. Read the opinion of the Court — 2017 Fla. App. LEXIS 5018
District Court of Appeal of Florida·Decided April 12, 2017·No. 2D15-1781·Published

Opinion

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF FILED, DETERMINED

IN THE DISTRICT COURT OF APPEAL OF FLORIDA SECOND DISTRICT

RICHARD BOATRIGHT and ) DEBORAH BOATRIGHT, his wife, ) ) Appellants, ) ) v. ) Case No. 2D15-1781 ) PHILIP MORRIS USA INC., and ) LIGGETT GROUP, LLC, ) ) Appellees. ) )

Opinion filed April 12, 2017.

Appeal from the Circuit Court for Polk County; John M. Radabaugh, Judge.

Philip J. Padovano, Celene H. Humphries, and Maegen P. Luka of Brannock & Humphries, Tampa, and Jonathan R. Gdanski, Steven Hammer, and Brittany Chambers of Schlesinger Law Offices, P.A., Fort Lauderdale, for Appellants.

M. Sean Laane and Geoffrey J. Michael of Arnold & Porter LLP, Washington, D.C.; and William P. Geraghty and Rachel A. Canfield of Shook, Hardy & Bacon, L.L.P., Miami, for Appellee Philip Morris USA Inc.

Wayne L. Thomas of Akerman Senterfitt, Tampa; and Kelly Anne Luther, Maria Ruiz, Giselle Gonzalez Manseur, and Ann M. St. Peter-Griffith of Kasowitz, Benson, Torres & Friedman, LLP, Miami; and Karen H. Curtis of Clarke Silverglate, P.A., Miami, for Appellee Liggett Group, LLC.

BADALAMENTI, Judge.

Appellants Richard and Deborah Boatright are former Engle1 plaintiffs who

obtained a $32.75 million jury verdict against Appellees Philip Morris USA Inc. and

Liggett Group, LLC (the tobacco companies). The trial court partially denied the

Boatrights' posttrial motion to tax attorneys' fees and costs, holding that proposals for

settlement served by the Boatrights upon the tobacco companies' attorneys could not

serve as a basis to award fees and costs because they were not served by e-mail. The

trial court reasoned that the method of service by which the Boatrights served their

proposals for settlement—U.S. Certified Mail—did not strictly comply with the service

requirements for proposals for settlement. We disagree and reverse.

PROCEDURAL AND FACTUAL BACKGROUND

The facts here are both undisputed and straightforward. Prior to trial, the

Boatrights served four proposals for settlement on the tobacco companies—one from

each plaintiff to each defendant for $200,000, totaling $800,000. Attached to each of

the four proposals was a corresponding certificate of service signed by the Boatrights'

attorney. The certificates of service attached to the proposals were set forth in the

following format: "I hereby certify that on the 31st of July, 2014, the foregoing document

was served on [the tobacco companies' respective attorneys] at [the corresponding law

firm's mailing address] . . . for PHILLIP MORRIS U.S.A., INC. [or LIGGETT GROUP,

1 Engle v. Liggett Grp., Inc., 945 So. 2d 1246 (Fla. 2006). -2- LLC] via U.S. Certified Mail." (Bolded text in originals). The tobacco companies

received and did not accept the proposals.

Upon receiving the jury's verdict, the Boatrights filed a motion to tax

attorneys' fees and costs based in part on the tobacco companies' failure to accept the

Boatrights' proposals for settlement.2 See § 768.79(6)(b), Fla. Stat. (2013); Fla. R. Civ.

P. 1.442(h). After a hearing on the motion, the trial court held that the Boatrights were

not entitled to attorneys' fees and costs because they did not serve their proposals for

settlement on the tobacco companies' attorneys by e-mail, and therefore did not strictly

comply with section 768.79 and rule 1.442.

DISCUSSION

The question before us is whether section 768.79 and rule 1.442 mandate

e-mail as the exclusive method for service of pretrial proposals for settlement upon a

party. Because section 768.79 and rule 1.442 depart from common law, they demand

strict compliance and strict construction. See Diamond Aircraft Indus., Inc. v.

Horowitch, 107 So. 3d 362, 377 (Fla. 2013); Campbell v. Goldman, 959 So. 2d 223, 226

(Fla. 2007) (citing Willis Shaw Express, Inc. v. Hilyer Sod, Inc., 849 So. 2d 276, 278

(Fla. 2003)). Failure to strictly comply with section 768.79 and rule 1.442 will render a

proposal for settlement invalid, and therefore incapable of supporting an award of

attorneys' fees and costs. Campbell, 959 So. 2d at 226.

We must discern a drafter's intent by analyzing the text's plain and

ordinary meaning. Gallagher v. Manatee County, 927 So. 2d 914, 919 (Fla. 2d DCA

2 The Boatrights also moved to recover costs pursuant to section 57.041, Florida Statutes (2013), which was granted by the trial court. That basis for the award of costs is not being challenged in this appeal. -3- 2006) (quoting State v. Burris, 875 So. 2d 408, 410 (Fla. 2004)).3 Where, as here,

"there are several rules pertaining to the same subject they are to be construed together

and in relation to each other." In re Cleary's Estate, 135 So. 2d 428, 430 (Fla. 2d DCA

1961).

A. The Text and Interplay of Section 768.79, Rule 1.442, and Rule 1.080

Section 768.79 does not provide for any particular method of service of a

proposal for settlement. It merely states that a proposal for settlement "shall be served"

upon the party to whom the proposal is made, but it shall not be filed with the court

unless it is accepted, or filing is necessary to enforce the provisions of the statute. §

768.79(3). Similarly, rule 1.442(d) states that "[a] proposal shall be served on the party

or parties to whom it is made but shall not be filed unless necessary to enforce the

provisions of this rule." Thus, although both section 768.79 and rule 1.442 do not set

any specific method of service for proposals for settlement, they are both absolutely

clear that proposals for settlement are not to be filed, unless: (1) they are part of a

motion for incorporation into a final judgment; or (2) they are part of a motion to enforce

the provisions of section 768.79 or rule 1.442, such as a motion for attorneys' fees and

costs.

There is no dispute that the Boatrights did not file their proposals with the

trial court until they sought to enforce the attorneys' fees and costs provisions of section

768.79(6)(b) and rule 1.442(h). There is also no dispute that the Boatrights attached

3 "The same principles of construction apply to court rules as apply to statutes." Mitchell v. State, 911 So. 2d 1211, 1214 (Fla. 2005) (quoting Gervais v. City of Melbourne, 890 So. 2d 412, 414 (Fla. 5th DCA 2004)). -4- their proposals to their motion to tax attorneys' fees and costs. Therefore, the

Boatrights strictly complied with section 768.79 and rule 1.442.

That said, the tobacco companies contend that rule 1.442 provides

additional guidance as to the method of service of proposals for settlement upon an

opposing party. In particular, they point to rule 1.442(c)(2)(G), which states that "[a]

proposal [for settlement] shall . . . include a certificate of service in the form required by

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