Laura M. Watson, Stephen Rakusin, and the Rakusin Law Firm v. Stewart Tilghman Fox & Bianchi, P.A., William C. Hearon, P.A., Todd S. Stewart, P.A., Larry S. Stewart, individually, and William C. Hearon, individually

195 So. 3d 1163, 2016 Fla. App. LEXIS 9993, 2016 WL 3540959
CourtDistrict Court of Appeal of Florida
DecidedJune 29, 2016
Docket4D14-4599
StatusPublished
Cited by2 cases

This text of 195 So. 3d 1163 (Laura M. Watson, Stephen Rakusin, and the Rakusin Law Firm v. Stewart Tilghman Fox & Bianchi, P.A., William C. Hearon, P.A., Todd S. Stewart, P.A., Larry S. Stewart, individually, and William C. Hearon, individually) 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
Laura M. Watson, Stephen Rakusin, and the Rakusin Law Firm v. Stewart Tilghman Fox & Bianchi, P.A., William C. Hearon, P.A., Todd S. Stewart, P.A., Larry S. Stewart, individually, and William C. Hearon, individually, 195 So. 3d 1163, 2016 Fla. App. LEXIS 9993, 2016 WL 3540959 (Fla. Ct. App. 2016).

Opinions

CONNER, J.

Appellants raise several issues in this appeal of a trial court order granting Ap-pellees’ motion for attorney’s fees pursuant to section 57.105, Florida Statutes (2014). Although we reverse as to one portion of the fees awarded, we affirm all other aspects of the award. We write to clarify the law regarding when a trial court, on its own initiative, may order a party to pay attorney’s fees pursuant to section 57.105. We hold that the trial court does not abuse its discretion in ordering a party to pay attorney’s fees pursuant to section 57.105(1), on the court’s own initiative, when a motion is filed by a party and the moving party fails to comply with the safe harbor requirements of the rule, as long as it can be determined from the record that the trial court is not simply adopting the moving party’s defective motion.

Factual Background and Trial Court Proceedings

The suit below was the result of a series of lawsuits, and eventual dispute over a fee agreement, between law firms regarding the distribution of fees from a settlement agreement. With regards to the settlement agreement, Appellant Watson was a defendant in a lawsuit alleging breach of fiduciary duty, constructive fraud, constructive trust, fraud in the inducement, and unjust enrichment. Subsequent to resolution of the suit in which she was a defendant, Appellant Watson brought the instant suit below against the plaintiffs of the prior suit, alleging libel and slander, abuse of process, and malicious prosecution. After an evidentiary hearing, the trial court struck Appellant Watson’s complaint as a sham pleading, and entered judgment in favor of the defendants (the plaintiffs in the prior suit).

After the final judgment was entered, Appellees, the successful defendants below, filed a motion for attorney’s fees pursuant to section 57.105. However, the record shows Appellees did not fully comply with the safe harbor notice provision of section 57.105(4). At the initial hearing on the motion, Appellees argued that it did not matter that the procedural requirements of the safe harbor provision were not followed, since the trial court had the authority to grant attorney’s fees on its own initiative. Upon continuing the hearing, the trial court asked both sides to submit a written memorandum regarding [1166]*1166the trial court’s authority to grant fees pursuant to section 57.105 on its own initiative.

When the issue of the trial court’s own initiative was addressed at the continued hearing, Appellants argued that the trial court could not grant attorney’s fees because Appellees’ motion was insufficient. The trial court responded:

THE COURT: But you know what I was thinking in this case, because we had a hearing on the motion to strike a sham pleading. And I—
[APPELLANTS’ ATTORNEY]: Correct, Judge. But you didn’t—
THE COURT: — felt that the allegations did not meet the legal criteria and, in fact, were a sham pleading. And so you know that Í was thinking that this lawsuit should never have been filed.

Ultimately, the trial court granted Ap-pellees’ motion for attorney’s fees, explaining:

In this case, I am not simply adopting a failed 57.105 attempt by the Defendants. That is evidenced by my written opinion and order of 2/2014 and the oral pronouncement in January. The [Wood v. Price, 546 So.2d 88 (Fla. 2d DCA 1989)] case has language that is consistent with that the Court — what I did here in this case in that the findings — I agree with [Wood ] that just because a pleading is stricken as a sham, it doesn’t mean that the underlying cause of action was frivolous.
In this particular case for the reasons I stated in my prior ruling, I am finding today just that. That the Plaintiff, Ms. Watson, and her lawyer should have known under the existing law that the cause of action of abuse of process, malicious prosecution could not — they could not prevail under the Supreme Court’s very clear language holding against those causes of action in the scenario that we have here. And certainly the defamation count also had no merit as previously stated. So I am going to award attorneys’ fees against Ms. Watson and her lawyer.

In granting the motion, the trial court entered an order granting Appellees attorney’s fees for, among other things, work performed in preparing a response to a petition for a writ of prohibition intended to be filed with this court, although the response was never filed. With regards to awarding fees for that work, the trial court determined that Appellees should not “be penalized for being diligent as opposed to being a procrastinator.” Appellants gave notice of appeal of the fees awarded as a sanction.

Appellate Analysis

“Generally, the standard of review of a trial court’s order awarding section 57.105(1) attorney’s fees is abuse of discretion. However, to the extent a trial court’s order on fees is based on an issue of law, this court applies de novo review.” Blue Infinity LLC v. Wilson, 170 So.3d 136, 139 (Fla. 4th DCA 2015) (quoting Lago v. Kame By Design, LLC, 120 So.3d 73, 74 (Fla. 4th DCA 2013)).

Section 57.105, Florida Statutes (2014), states:

(1) Upon the court’s initiative or motion of any party, the court shall award a reasonable attorney’s fee, including prejudgment interest, to be paid to the prevailing party in equal amounts by the losing party and the losing party’s attorney on any claim or defense at any time during a civil proceeding or action in which the .court finds that the losing party or the losing party’s attorney knew or should have known that a claim or defense when initially presented to the court or at any time before trial:
[1167]*1167(a) Was not supported by the material facts necessary to establish the claim or defense; or
(b) Would not be,supported by the application of then-existing law to those material facts. .

§ 57.105(1), Fla. Stat. (2014)- (emphasis added). Therefore, section 57.105(1) allows a trial court to award attorney’s fees by motion of a party, or “[u]pon the court’s initiative.”

Appellants’ specific contention is that the trial court assisted Appellees in circumventing the procedural requirements of the statute by “adopting” their section 57.105 motion, when Appellees failed to comply with the safe harbor period1 in the statute.

In Santini v. Cleveland Clinic Florida, 65 So.3d 22 (Fla. 4th DCA 2011), we addressed the trial court’s discretion to initiate an award of section 57.105 fees, with regards to circumvention of the twenty-one day safe harbor period. In Santini, we discussed the Second District’s and First District’s perspectives on the issue:

Although the Second District recently declined to follow Davidson [v. Ramirez, 970 So.2d 855 (Fla. 3d DCA 2007)] mostly because of factual distinctions, the Second District also noted: “Accepting Davidson’s reasoning at face value would mean that the trial court loses the ability to impose sanctions even when clearly warranted if a party files a section 57.105 motion for sanctions that fails to comply with the twenty-one-day notice requirement imposed on parties.” Koch v. Koch, 47 So.3d 320, 324 (Fla. 2d DCA 2010).

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Bluebook (online)
195 So. 3d 1163, 2016 Fla. App. LEXIS 9993, 2016 WL 3540959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laura-m-watson-stephen-rakusin-and-the-rakusin-law-firm-v-stewart-fladistctapp-2016.