Grip Development, Inc. v. Coldwell Banker Residential Real Estate, Inc.

788 So. 2d 262, 2000 Fla. App. LEXIS 11908, 2000 WL 1345153
CourtDistrict Court of Appeal of Florida
DecidedSeptember 20, 2000
Docket4D99-1513, 4D99-3509
StatusPublished
Cited by11 cases

This text of 788 So. 2d 262 (Grip Development, Inc. v. Coldwell Banker Residential Real Estate, Inc.) 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
Grip Development, Inc. v. Coldwell Banker Residential Real Estate, Inc., 788 So. 2d 262, 2000 Fla. App. LEXIS 11908, 2000 WL 1345153 (Fla. Ct. App. 2000).

Opinion

788 So.2d 262 (2000)

GRIP DEVELOPMENT, INC., Appellant,
v.
COLDWELL BANKER RESIDENTIAL REAL ESTATE, INC., Appellee.

Nos. 4D99-1513, 4D99-3509.

District Court of Appeal of Florida, Fourth District.

September 20, 2000.

*263 Jeffrey J. Pardo, Burlington, Connecticut, for appellant.

Stephen N. Lipton and Edward J. O'Sheehan of Shutts & Bowen LLP, Fort Lauderdale, for appellee.

ON MOTION FOR REHEARING AND CLARIFICATION

POLEN, J.

Coldwell Banker Residential Real Estate, Inc. filed a motion for rehearing, motion for rehearing en banc, and motion to certify conflict. We grant rehearing in part, withdraw our original opinion, and substitute the following. We deny the motions in all other respects.

In case number 4D99-1513, Grip Development, Inc. ("Grip") appeals after the court denied its motion for new trial on damages awarded to its broker, Coldwell Banker Residential Real Estate, Inc. ("Coldwell Banker"). Grip argues that the jury's quantum meruit verdict exceeded the amount claimed under the brokerage contract, and that the Brokerage Relationship Disclosure Act precludes such a recovery as a matter of public policy. In case number 99-3509, Grip argues that the award of attorney's fees to Coldwell Banker should be reversed because Coldwell Banker's proposal for settlement was invalid. On this court's own motion, we consolidated both appeals. We affirm the denial of Grip's motion for new trial without comment but reverse the attorney's fees and costs awarded to Coldwell Banker as a result of its untimely proposal for settlement.

On June 3, 1998, Coldwell Banker sued Grip seeking a broker's commission. It is undisputed that it served its complaint on Grip on June 8, 1998. On Friday, September 4, 1998, 87 days after it served the complaint, it served a proposal for settlement upon Grip. The total amount of proposal was $12,569.96, and provided that Grip would have to file written acceptance within thirty days after service of same if it wanted to accept its terms. Grip did not respond to the proposal.

Coldwell Banker prevailed at trial, and the jury awarded it $18,000. The court then entered final judgment for this amount in Coldwell Banker's favor.

Grip moved for a new trial. While his motion was pending, Coldwell Banker moved for attorney's fees pursuant to section 768.79, Florida Statutes (1997) and *264 Florida Rule of Civil Procedure 1.442. The court denied Grip's motion, but granted Coldwell's motion as to entitlement to fees. Thereafter, the court awarded Coldwell Banker $74,705.00 in fees and $4,639.27 in costs, for a total of $79,344.27. Of the $4,639.27 in costs, the record reflects that $3,463.27 had been awarded to Coldwell Banker as the prevailing party of the underlying action pursuant to section 57.041, Florida Statutes (1997); the remaining costs were awarded as a result of Coldwell Banker's attorney's fee litigation. This appeal followed.

Grip argues that because Coldwell Banker's proposal of judgment was served prematurely, the court should not have awarded it fees under section 768.79 and rule 1.442. It maintains that the time requirements of both these provisions must be strictly construed. Coldwell Banker concedes its proposal was served before the expiration of 90 days, but argues that a distinction should be made between offers served too early and those served too late. It concludes that offers served too early should be considered valid if they otherwise substantially comply with the requirements of section 768.79 and rule 1.442.

Section 768.79 provides in pertinent part as follows:

(1) In any civil action for damages filed in the courts of this state, if a defendant files an offer of judgment which is not accepted by the plaintiff within 30 days, the defendant shall be entitled to recover reasonable costs and attorney's fees incurred by him ... if the judgment is one of no liability or the judgment obtained by the plaintiff is at least 25 percent less than such offer....

§ 768.79(1), Fla. Stat. (1997)(emphasis supplied). In Schmidt v. Fortner, 629 So.2d 1036 (Fla. 4th DCA 1993), we concluded that in enacting section 768.79, the legislature created a mandatory right to attorney's fees if the statutory prerequisites have been met. In reaching this conclusion, we emphasized that the statute contains the words "shall be entitled...." We held that this language

cannot possibly have any meaning other than to create a right to attorney's fees when the two preceding prerequisites have been fulfilled: i.e., (1) when a party has served a demand or offer for judgment, and (2) that party has recovered a judgment at least 25 percent more or less than the demand or offer. These are the only elements of the statutory entitlement. No other factor is relevant in determining the question of entitlement.

Id. at 1040. We also noted that, under this statute, the legislature gave judges discretion only to determine whether the qualifying offer was made in good faith, and whether the amount of fees awarded was reasonable. Id. at 1041.

Section 768.79 does not specify when such offers may be served. This is so because the timing requirements of the statute are merely procedural in nature. Timmons v. Combs, 608 So.2d 1 (Fla.1992). Under the Florida Constitution, only the supreme court has the prerogative to promulgate rules for the procedural aspects of civil litigation through the Florida Rules of Civil Procedure. Fla. Const. art. V, § 2(a).

As such, the supreme court in Timmons adopted the procedural portion of section 768.79 as a rule of court. This rule— Florida Rule of Civil Procedure 1.442— provides, in relevant part,

A proposal to a defendant shall be served no earlier than 90 days after service of process on that defendant; a proposal to a plaintiff shall be served no earlier than 90 days after the action has *265 been commenced. No proposal shall be served later than 45 days before the date set for trial or the first day of the docket on which the case is set for trial, whichever is earlier.

Fla. R. Civ. P. 1.442(b)(emphasis supplied).

To paraphrase from our opinion in Fortner, the words "shall be served" that appear in this rule cannot possibly have any meaning other than setting a mandatory time frame for service of such offers. In fact, we held in our recent case of Schussel v. Ladd Hairdressers, Inc., 736 So.2d 776 (Fla. 4th DCA 1999) that section 768.79 and rule 1.442 are punitive[1] provisions which must be strictly construed. Id. at 778. In that case, Ladd's offer was served on Schussel within 45 days of the first day of the docket on which the case was initially set for trial and, thus, was untimely. Arguably, the fact the offer was untimely did not prejudice Schussel because discovery was complete; there was no date certain for the trial to commence; and trial did not actually take place until over six months later. Nevertheless, we held the offer was still void ab initio. We explained,

Since section 768.79 and Florida Rule of Civil Procedure 1.442 are punitive in nature in that they impose sanctions upon the losing party and are in derogation of the common law, they must be strictly construed. See TGI Friday's, Inc. v. Dvorak, 663 So.2d 606, 614 (Fla. 1995); Loy v. Leone, 546 So.2d 1187, 1189 (Fla. 5th DCA 1989).

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788 So. 2d 262, 2000 Fla. App. LEXIS 11908, 2000 WL 1345153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grip-development-inc-v-coldwell-banker-residential-real-estate-inc-fladistctapp-2000.