Hingson v. MMI OF FLORIDA, INC.

8 So. 3d 398, 2009 Fla. App. LEXIS 2218, 2009 WL 691161
CourtDistrict Court of Appeal of Florida
DecidedMarch 18, 2009
Docket2D07-5215
StatusPublished
Cited by3 cases

This text of 8 So. 3d 398 (Hingson v. MMI OF FLORIDA, 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
Hingson v. MMI OF FLORIDA, INC., 8 So. 3d 398, 2009 Fla. App. LEXIS 2218, 2009 WL 691161 (Fla. Ct. App. 2009).

Opinion

SILBERMAN, Judge.

Valerie M. Hingson appeals an order on motions for attorney’s fees and a final judgment of attorney’s fees that award attorney’s fees to her and to her former employers, MMI of Florida, Inc., and Mag-necel Services, L.C. (the Employers). 1 We reverse the attorney’s fees awarded to the Employers and remand for the trial court to add prejudgment interest to the attorney’s fees awarded to Hingson from the date the trial court determined entitlement. We affirm without discussion the trial court’s decision not to apply a contin *400 gency multiplier in determining Hingson’s attorney’s fees.

The Employers hired Hingson as an account executive to sell medical equipment and maintenance services. She signed a written employment agreement prepared by the Employers, with an effective date of December 1, 2002. The employment agreement contains a provision for attorney’s fees to the Employers if they prevailed “[i]n any legal action or other proceeding involving, arising out of or in any way relating to this Agreement.” 2

In her amended complaint, Hingson claimed that she was terminated without cause on January 30, 2004, and that she was not paid commissions or bonuses that were due her, “including but not limited to, amounts due on transactions with Radiology & Imaging Specialists of Lakeland and Dimensional Imaging Sarasota.” In count 1, she asserted the Employers’ breach of the employment agreement, and in count II, she alleged an alternative claim for unjust enrichment. The Employers answered and asserted four affirmative defenses, including that Hingson was terminated for failing to perform as called for in the employment agreement, that she was paid in excess of what was due to her, and that she was not entitled to any commissions or other monies. The Employers did not assert any counterclaims.

After a nonjury trial, the trial court entered an amended final judgment in Hingson’s favor, noting that it had also ruled in Hingson’s favor on the Employers’ affirmative defenses. The court determined that the Employers “breached their employment agreement with [Hingson] by not paying her compensation due upon termination for the sale to Radiology and Imaging Specialists of Lakeland and for the first payment received for asset management services from such customer.” The trial court awarded Hingson damages of $31,659.50, plus prejudgment interest of $10,447.64 and costs of $4,273.25, for a total of $46,380.39. In light of its decision on count I, the trial court found Hingson’s unjust enrichment claim in count II to be moot.

Both parties filed motions for fees and costs. Hingson sought fees pursuant to the employment agreement and pursuant to section 448.08, Florida Statutes (2003), which allows awards of attorney’s fees and costs to successful litigants in actions for unpaid wages. The Employers sought fees pursuant to the agreement. The Employers argued that Hingson had claimed commissions on the full value of sales to customers but that the trial court had ruled she was only entitled to a commission on monies the Employers had received at the time of her termination.

Following a hearing, the trial court stated that Hingson “was asking for several hundred thousand dollars, maybe $200,000, and actually got a judgment for $31,000 plus the interest” and that “a significant part of the claim was denied.” The trial court determined that under the employment agreement, the Employers prevailed on the significant issues in the litigation. In its written order entered on April 25, 2007, the court concluded that Hingson was entitled to fees under section 448.08 as the prevailing party. The court further concluded that the Employers were entitled to an award of attorney’s fees as the prevailing party under the employment agreement based upon Lashkajani v. Lashkajani, 911 So.2d 1154 (Fla.2005).

*401 Alter a hearing to determine the amount of the fees, the trial court entered a final judgment of attorney’s fees, finding that Hingson incurred reasonable attorney’s fees of $112,000 and that the Employers incurred reasonable attorney’s fees of $56,000. The court then awarded net attorney’s fees of $56,000 in Hingson’s favor. The trial court refused Hingson’s request to award interest on the fee award from April 25, 2007, the date the court had determined entitlement to fees. On appeal, Hingson argues that because the trial court found that the Employers had breached the employment agreement and because it entered a judgment in her favor for unpaid commissions, the court erred in awarding attorney’s fees to the Employers, which offset part of her fee award.

Pursuant to section 448.08, the trial court properly awarded fees to Hing-son. Section 448.08 provides, “The court may award to the prevailing party in an action for unpaid wages costs of the action and a reasonable attorney’s fee.” Unpaid commissions are considered wages for purposes of section 448.08. See Gulf Solar, Inc. v. Westfall, 447 So.2d 368, 367 (Fla. 2d DCA 1984); D.G.D., Inc. v. Berkowitz, 605 So.2d 496, 498 (Fla. 3d DCA 1992). The policy behind section 448.08 is to provide “a means to equalize the disparate positions of employees in attempting to collect for the fruits of their labors.” Tampa Bay Publ’ns, Inc. v. Watkins, 549 So.2d 745, 747 (Fla. 2d DCA 1989). The fact that Hingson did not recover all the commissions she sought does not alter her status as prevailing party under section 448.08. Although she recovered less than the amount that she claimed, she established, and the trial court found, that the Employers breached the employment agreement and that she was entitled to damages and her statutorily authorized attorney’s fees as a result of that breach.

Regarding the trial court’s award of fees to the Employers, we conclude that the trial court erred. As noted previously, the court awarded fees to the Employers based on Lashkajani, 911 So.2d 1154, stating that for purposes of the fee provision in the employment agreement, the Employers were the prevailing party.

In Lashkajani, the circuit court awarded attorney’s fees of $117,022.42 to the wife in a dissolution action pursuant to section 61.16, Florida Statutes (2001), based on the parties’ relative financial inequality. The court also awarded attorney’s fees of $63,022.92 to the husband for his successful defense of the parties’ prenuptial agreement, based on the prevailing party provision in the agreement. The supreme court stated that it was only addressing the narrow issue of “whether a prenuptial agreement may contract away a future obligation to pay attorney’s fees and costs during the marriage by providing for prevailing party attorney’s fees in actions seeking to enforce the agreement.” 911 So.2d at 1156. The court held “that prenuptial agreement provisions awarding attorney’s fees and costs to the prevailing party in litigation regarding the validity and enforceability of a prenuptial agreement are enforceable.” Id. at 1160. The court did not otherwise address the circuit court’s separate fee awards to the parties.

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Bluebook (online)
8 So. 3d 398, 2009 Fla. App. LEXIS 2218, 2009 WL 691161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hingson-v-mmi-of-florida-inc-fladistctapp-2009.