SABAL TRAIL TRANSMISSION LLC v. 18.27 ACRES OF LAND IN LEVY COUNTY

CourtDistrict Court, N.D. Florida
DecidedMay 11, 2021
Docket1:16-cv-00093
StatusUnknown

This text of SABAL TRAIL TRANSMISSION LLC v. 18.27 ACRES OF LAND IN LEVY COUNTY (SABAL TRAIL TRANSMISSION LLC v. 18.27 ACRES OF LAND IN LEVY COUNTY) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SABAL TRAIL TRANSMISSION LLC v. 18.27 ACRES OF LAND IN LEVY COUNTY, (N.D. Fla. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF FLORIDA GAINESVILLE DIVISION

SABAL TRAIL TRANSMISSION, LLC,

Plaintiff,

v. Case No.: 1:16cv93-MW/GRJ

18.27 ACRES OF LAND IN LEVY COUNTY, et al.,

Defendants. ______________________________/

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR ATTORNEY’S FEES AND COSTS1

This Court previously held that state substantive law governs the measure of compensation in eminent domain cases brought by private parties against private property owners under the Natural Gas Act. Accordingly, Florida’s full compensation measure applies here, which includes reasonable attorney’s fees. See

1 This Court recognizes that this Order coming from this judge is unusual for two reasons; namely, because this Court did not handle the trial in this case—rather Judge Huck from the Southern District of Florida presided over the trial—and because, typically, fee motions are referred to magistrate judges in other divisions within this District and in other district courts. But while this Court did not sit in the trial for this case, it did handle the pretrial litigation—including the determination of the measure of compensation, motions in limine, and Daubert motions—and post-trial litigation, including the motion for new trial. Accordingly, this Court is well-versed on the disputed issues, what transpired at trial, and the attorneys’ efforts in litigating this case. In addition, consistent with longstanding tradition in the Tallahassee Division initiated by Judge Hinkle, this Court directly addresses fee motions rather than refer them to a magistrate judge. This Court acknowledges that this tradition is somewhat unique to this Division; however, this Court has a bird’s eye view of the case, which assists in the orderly and efficient resolution of the issues, obviating the need to refer the matter to a magistrate judge. Art. X, § 6(a), Fla. Const. (“No private property shall be taken except for a public purpose and with full compensation therefor paid to each owner . . . .”) (emphasis

added); Joseph B. Doerr Trust v. Cent. Fla. Expressway Auth., 177 So. 3d 1209, 1215 (Fla. 2015) (holding that it is “fundamentally clear” that the definition of full compensation under Florida’s Constitution includes reasonable attorney’s fees

(citations omitted)). Several courts have reached the same conclusion—that state substantive law governs the measure of compensation—both before and after this Court conducted its analysis. See, e.g., Tenn. Gas Pipeline Co., LLC v. Permanent Easement, 931

F.3d 237 (3d Cir. 2019); Columbia Gas Transmission Corp. v. Exclusive Nat. Gas Storage Easement, 962 F.2d 1192 (6th Cir. 1992); Sabal Trail Transmission LLC v. Real Estate, 2018 WL 2305768 (M.D. Ga. May 21, 2018); Equitrans LP v. Real

Estate, 2017 WL 1455023 (N.D.W.V. Apr. 21, 2017). Without waiving its argument that this Court decided this issue incorrectly, Plaintiff challenges Defendants’ motion for costs and fees, asserting, among other things, that Defendants improperly seek additional fees beyond the “benefits-

achieved” amount allowed under Florida law, and that federal law—not Florida law—provides the governing standard for awarding reasonable costs.2 This Court

2 Plaintiff reserves the right to appeal this Court’s determination of entitlement to attorney’s fees and costs. See ECF No. 290 at 1 n.1. will address fees and costs in turn, beginning with a discussion of how Florida law determines the amount of attorney’s fees as a component of “full compensation”

pursuant to section 73.092, Florida Statutes, and the amount of fees to which Defendants are entitled. I. “Benefits Achieved” Fee Award under § 73.092(1), Fla. Stat.

In eminent domain proceedings, Florida law provides “the measure to set an award of fees based solely on the benefits achieved for the client.” City of North Miami Beach v. Reed, 863 So. 2d 351, 354 (Fla. 5th DCA 2003) (internal quotation marks omitted). Section 73.092(1)(a) defines “benefits” as “the difference, exclusive

of interest, between the final judgment or settlement and the last written offer made by the condemning authority before the defendant hires an attorney.” § 73.092(1)(a), Fla. Stat. The statute sets a sliding scale, taking into consideration the “benefits

achieved,” to calculate attorney’s fees. Eligible fee awards include 33% of any benefit up to $250,000, plus 25% of any portion of the benefit between $250,000 and $1 million. See § 73.092(1)(c)1.-2., Fla. Stat. “Section 73.092 is intended to promote settlements and deter litigation.”

Seminole Cnty. v. Coral Gables Fed. Sav. & Loan Ass’n, 691 So. 2d 614, 615 (Fla. 5th DCA 1997). Accordingly, when “the condemning authority acknowledges there has been a taking from the outset,” it may preserve a statutory right to limit the

landowner’s attorney’s fee award by making a written offer of settlement. Reed, 863 So. 2d at 354. Thus, the higher the last written offer of settlement relative to the final judgment, the lower the potential “benefit” and resulting fee award.

Finally, additional fees may be awarded in cases where the opposing party has dragged the property owner through “excessive litigation.” See Doerr, 177 So. 3d at 1219 (holding that “when a condemning authority engages in tactics that cause

excessive litigation, section 73.09(2) shall be used separately and additionally to calculate a reasonable attorney’s fee for the hours expended which are attributable to defending against the excessive litigation or actions”). However, this is not Defendants’ position. ECF No. 283 at 21-27.

As an initial matter, the parties have agreed upon the calculation, based on the statutory sliding scale, and the amount of “benefits achieved” fees totaling $220,391. This is based on a benefit achieved totaling $801,564 (the difference

between the final judgment of $861,264 and the last written offer before Defendants hired an attorney of $59,700). Applying the statutory sliding scale to this “benefit achieved” yields $82,500 (33% of $250,000) plus $137,891 (25% of ($801,564 - $250,000 = $551,564)) for a total “benefits achieved” fee award of $220,391. See

ECF No. 281 at 3 n.1. Accordingly, based on the parties’ agreement and the application of section 73.092(1)(c), Florida Statutes, Defendants’ motion, ECF No. 283, is GRANTED as to the amount of “benefits achieved” attorney’s fees totaling

$220,391 as a component of Defendants’ full compensation. This Court will not pass on the issue of whether Defendants are entitled to additional fees under section 73.092(2) due to “excessive litigation,” because

Defendants do not claim to have been the victims of such tactics. Instead, as will be explained in more detail below, Defendants seek to squeeze this exception to the statutory percentage cap on fees into a different box with a different label, claiming

they are entitled to fees for “supplemental proceedings” that were actually just a part of the original action. This Court is impelled to reiterate that the corollary, under Florida law, to allowing attorney’s fees in eminent domain proceedings is that the condemning authority has a statutory right to limit that recovery by engaging in good

faith settlement negotiations and providing a written settlement offer. Section 73.092(1) applies in this case because Plaintiff made a written offer of settlement— effectively limiting the amount of fees Defendants can recover. As this Court has

already explained, Defendants are entitled to fees based upon the “benefits achieved,” which encompasses the success obtained in the original proceeding, and all work that Defendants put into litigating their case—including early matters regarding choice of law and whether this case would be tried by a jury. Such matters

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SABAL TRAIL TRANSMISSION LLC v. 18.27 ACRES OF LAND IN LEVY COUNTY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabal-trail-transmission-llc-v-1827-acres-of-land-in-levy-county-flnd-2021.