Department of Transp. v. RFT PARTNERSHIP

906 So. 2d 1161, 2005 Fla. App. LEXIS 10090, 2005 WL 1521329
CourtDistrict Court of Appeal of Florida
DecidedJune 29, 2005
Docket2D04-788
StatusPublished
Cited by2 cases

This text of 906 So. 2d 1161 (Department of Transp. v. RFT PARTNERSHIP) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Transp. v. RFT PARTNERSHIP, 906 So. 2d 1161, 2005 Fla. App. LEXIS 10090, 2005 WL 1521329 (Fla. Ct. App. 2005).

Opinion

906 So.2d 1161 (2005)

DEPARTMENT OF TRANSPORTATION, Appellant,
v.
RFT PARTNERSHIP, Appellee.

No. 2D04-788.

District Court of Appeal of Florida, Second District.

June 29, 2005.

*1163 Pamela S. Leslie, General Counsel, and Marianne A. Trussell, Deputy General Counsel, Department of Transportation, Tallahassee, for Appellant.

Jack P. Brandon and Deborah A. Ruster of Peterson & Myers, P.A., Lake Wales, for Appellee.

ALTENBERND, Chief Judge.

The Department of Transportation (DOT) appeals a final judgment awarding attorneys' fees for a nonmonetary benefit in an eminent domain proceeding. We reverse. This case is procedurally unusual. We decline to resolve the procedural issues because we conclude that the benefit obtained by the lawyers for their client was not the type of nonmonetary benefit for which the DOT is required to pay attorneys' fees.

I. THE FACTS

RFT Partnership (RFT) is a real estate development firm. It often buys land to hold in reserve for development purposes. Prior to 1996, RFT purchased a parcel, identified for purposes of this lawsuit as Parcel 160, at the Memorial Boulevard exit of I-4 in Lakeland. Parcel 160 was approximately sixteen acres and zoned for industrial use. Although it was adjacent to I-4 and Memorial Boulevard, access to Parcel 160 in 1996 was available only from Laura Road, a small unimproved road that intersected with Galloway Road about a quarter mile south of Parcel 160. Galloway Road ran immediately adjacent to the western edge of Parcel 160 and crossed I-4 by means of an overpass. The diagram attached to this opinion as Appendix "A" will assist in understanding the layout of this property.

By 1996, the DOT had decided to expand I-4 in a region including the Memorial Boulevard exit. To accomplish this expansion, the DOT determined that it needed to take a slice of approximately 41,000 square feet from Parcel 160. This slice is the shaded portion of the property in the diagram.

In order to take this parcel and other parcels necessary for the project, the DOT filed case number GC-G-3140 in the circuit court of Polk County. RFT hired the Peterson & Myers law firm to represent it in this matter. In August 1997, after considerable legal proceedings, the DOT decided to abandon or delay its efforts to *1164 take this parcel. The DOT filed a notice of dismissal, and the lawyers for RFT requested attorneys' fees for defeating the proceeding. The trial court entered an order on fees and costs, granting the Peterson & Myers law firm a fee of $27,500. That order was entered on January 2, 1998. Apparently, the DOT paid this award of fees.

The dispute over attorneys' fees, however, included an issue that was not resolved by the order in January 1998. During the eminent domain proceeding, it became clear that the DOT intended to elevate Galloway Road in order to allow for a higher overpass at I-4. This change of grade would affect Galloway Road south at least as far as its intersection with Laura Road. If the project had been built as initially designed by the DOT, the intersection between Galloway Road and Laura Road would have been so steep that trucks could not have used the intersection if or when RFT developed the property as a warehouse facility.[1] Expert testimony indicated that the present value of the property would have decreased substantially if the intersection at Galloway Road and Laura Road could not accommodate trucks in the future.

Peterson & Myers hired traffic engineers to examine this problem and engaged in discussions with the DOT, detailing alternative development plans that could potentially mitigate the grade change at the intersection of Galloway Road and Laura Road. Despite the DOT's initial receptiveness to the proposed plans, negotiations fell apart and, before the action was dismissed, the DOT never formally agreed to make the suggested changes at this intersection.

At the hearing in January 1998, the trial court declined to award fees for what could be classified as a design benefit based on the alternative development plans because no taking had occurred and any benefit was hypothetical. The trial court did, however, expressly leave the issue open. The order stated:

FURTHER, the Court reserves jurisdiction to consider an award of attorneys' fees premised upon non-monetary benefits in the event the [DOT] should refile this case naming RFT Partnership as a party defendant.

The DOT did not appeal this unusual ruling.

In 2002, the DOT filed a new case naming RFT as a party, seeking the same parcel of land it sought in 1996. The DOT acquired the parcel from RFT through an administrative settlement, without the assistance of RFT's attorneys. This second case was case number 02CA-837. We do not have the records from this second case in the appellate record, but apparently it was resolved before the end of 2002.

At some point between January 1998 and the filing of the new case in 2002, the DOT implemented the proposed changes at the intersection of Galloway Road and Laura Road. The engineer hired by Peterson & Myers informed the law firm that the DOT had implemented these proposed changes. As a result, when Peterson & Myers discovered that the second lawsuit had been filed and resolved, it believed that it was entitled to the attorneys' fees that had been left unresolved in January 1998. Thus, in July 2003, the law firm filed a motion to tax fees in case GC-G-96-3140.[2]

*1165 The DOT responded to the motion, arguing that the trial court should strike the motion. The DOT maintained that the trial court lacked jurisdiction to hear the motion because the indefinite reservation of the issue of fees was a nullity, that the motion was untimely under Florida Rule of Civil Procedure 1.525, and that fees were not appropriate. The trial court rejected the arguments of the DOT and awarded the law firm an additional $217,000 in attorneys' fees. These fees were calculated based on the theory that the law firm had avoided $900,000 in severance damages by causing the redesign to the intersection.[3] The court determined that it was appropriate to award this fee for the achieved nonmonetary benefit.

II. THE PROCEDURAL ISSUES

The DOT argues that the trial court erred in awarding fees because RFT failed to file a timely motion for fees under Florida Rule of Civil Procedure 1.525 and because the reservation of jurisdiction in the 1998 judgment was a nullity. We comment briefly on these issues, but have no need to resolve them because the case can be resolved by a determination that the Peterson & Myers law firm is not entitled to fees.

As to the argument that the motion for fees was untimely under rule 1.525, we note that the final judgment in this case was entered in 1998, two years before rule 1.525 became effective. Thus, if the thirty-day period described in rule 1.525 were measured from that judgment, it would have expired prior to the effective date of the rule.

Rule 1.525 was effective when the DOT filed the second action in 2002. The DOT, however, neglected to give the Peterson & Myers law firm notice of that lawsuit, and RFT did not retain them. Thus, neither the trial court nor the Peterson & Myers law firm had notice that the attorneys' fees dispute left unresolved in the first action was now ripe for resolution.

As to the argument that the trial court's reservation of jurisdiction was a nullity, the DOT relies on cases in other legal contexts, such as Mishoe v. Mishoe, 591 So.2d 1100 (Fla. 1st DCA 1992).

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906 So. 2d 1161, 2005 Fla. App. LEXIS 10090, 2005 WL 1521329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-transp-v-rft-partnership-fladistctapp-2005.