San Martin v. DaimlerChrysler Corp.

983 So. 2d 620, 2008 Fla. App. LEXIS 5857, 2008 WL 1809321
CourtDistrict Court of Appeal of Florida
DecidedApril 23, 2008
Docket3D05-2573, 3D05-2026
StatusPublished
Cited by3 cases

This text of 983 So. 2d 620 (San Martin v. DaimlerChrysler Corp.) 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
San Martin v. DaimlerChrysler Corp., 983 So. 2d 620, 2008 Fla. App. LEXIS 5857, 2008 WL 1809321 (Fla. Ct. App. 2008).

Opinion

983 So.2d 620 (2008)

Hugo SAN MARTIN & Mark Nelson, Appellants,
v.
DAIMLERCHRYSLER CORPORATION, Appellee.

Nos. 3D05-2573, 3D05-2026.

District Court of Appeal of Florida, Third District.

April 23, 2008.

*621 Krohn & Moss, and Theodore Greene, and Alex D. Weisberg, and Eric Karch; Scott Cohen, for appellants.

Anderson Glenn, and John J. Glenn, Ponte Vedra Beach and E. Holland Brabham, for appellee.

Before GERSTEN, C.J.,[*] and RAMIREZ and SHEPHERD, JJ.

SHEPHERD, J.

In these two consolidated cases, we are asked to decide whether a plaintiff-consumer, who accepts an offer of judgment made by a defendant-manufacturer in a Magnuson Moss Warranty Act (the Act) action expressly reserving to the plaintiff his right to seek an attorney fee award pursuant to the Act, has attained a sufficient level of success in the litigation to entitle him to seek a fee award under the Act. More exactingly stated, the question posed is whether such a consumer-plaintiff "finally prevails" within the meaning of the attorney fee provision in the Act. The provision reads:

If a consumer finally prevails in any action brought [pursuant to this Act], he may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost[s] and expenses (including attorneys' fees based on actual time expended) determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys' fees would be inappropriate.

15 U.S.C. § 2310(d)(2) (1975) (emphasis added). We hold that a consumer-plaintiff who accepts an offer of judgment expressly reserving to the plaintiff his right to seek an attorney fee award satisfies the threshold.

I. Factual Background and Procedural History

There is no material difference in the factual background and procedural history of each of these consolidated cases for purposes of the issue presented in this case. Each Appellant, Hugo San Martin and Mark Nelson, was a plaintiff below. Each purchased a new passenger vehicle from a DaimlerChrysler dealership in South Florida. Each vehicle was delivered with a three-year/36,000 mile manufacturer's warranty, as well as other warranties outlined in the "Manufacturer's New Vehicle Limited Warranty Booklet." Each vehicle is alleged to have been defectively manufactured. Each Appellant alleges he tendered his vehicle to DaimlerChrysler's authorized dealership network for repair without success. Ultimately, each Appellant revoked acceptance of his vehicle and, still unsatisfied, sued DaimlerChrysler for damages under the Act.[1]

*622 Two-and-a-half years into the Nelson litigation and two days after serving a motion for summary judgment directed to all counts of the complaint, DaimlerChrysler served Nelson with a proposal for settlement pursuant to Florida Rule of Civil Procedure 1.442 and section 768.79 of the Florida Statutes (2004). The proposal stated in relevant part: "Defendant DaimlerChrysler shall pay to Plaintiff the total sum of FOUR THOUSAND DOLLARS AND 00/100 ($4,000.00), exclusive of all interest, costs, and attorney's fees. . . ." It also expressly stated, "Defendant Chrysler does not concede that Plaintiff or his attorneys are entitled to any award of attorneys fees as a result of this proposal for settlement or Plaintiff's filing of his Amended Complaint in this action." Finally, the "Release and Confidentiality Agreement," Section 3.0, attached to DaimlerChrysler's proposal, contained a separate express reservation for the "Plaintiff's attorney . . . to motion the court for attorneys' fees he contends that he is entitled to as a result of his representation in this case." Nelson timely accepted the offer through his counsel.

In the case of San Martin, DaimlerChrysler served him with an offer of judgment two months after he filed suit. Except for offering a lesser settlement sum, the proposal was the same in all material respects to that made to Nelson. It stated: "Defendant DaimlerChrysler shall pay to Plaintiff the total sum of ONE THOUSAND FIVE HUNDRED DOLLARS AND xx/100 ($1,500.00), exclusive of all interest, costs, and attorney's fees. . . ." It further stated, "DaimlerChrysler concedes that Plaintiffs' [sic] counsel may seek to prove entitlement to attorneys' fees through a hearing before this Court." San Martin likewise accepted the offer through counsel.

Each Appellant then sought an award of attorney fees. In each case, Appellants argued they were legally entitled to a fee award on the basis they had "finally prevail[ed]" within the meaning of 15 U.S.C. § 2310(d)(2). The respective trial courts disagreed, and their motions were denied. These appeals ensued.

II. Standard of Review

The parties disagree on the proper standard of review. DaimlerChrysler contends the abuse of discretion standard applies because the trial court has the discretion to determine the appropriate amount of attorney fees and costs incurred. Universal Beverages Holdings, Inc. v. Merkin, 902 So.2d 288, 290 (Fla. 3d DCA 2005) ("The standard of review for an award of attorney's fees, whether based on contract or statute, is abuse of discretion."); Gates v. Chrysler Corp., 397 So.2d 1187, 1190-91 (Fla. 4th DCA 1981) (stating that "the question of attorney's fees in [Magnuson Moss Warranty Act cases]" lies within the trial court's "sole discretion").

The appellants contend the de novo standard is the proper standard of review. We agree with the appellants. There is no factual dispute here. The principal issue on appeal is whether the appellants, who as plaintiffs accepted offers of judgment made by DaimlerChrysler, have "finally prevail[ed]" for purposes of pursuing an expressly reserved attorney fees claim under the Act. The issue is one of statutory construction. Construction of a statute is purely a legal question, appropriately subject to de novo review. Maggio v. Fla. Dep't of Labor & Employment Sec., 899 So.2d 1074, 1076 (Fla.2005); Aramark Unif. & Career Apparel, Inc. v. Easton, 894 So.2d 20, 23 (Fla.2004).

III. Nelson and San Martin "Finally Prevailed" for the Purpose of the Fee Award under The Act.

Numerous federal statutes allow courts to award attorney fees and costs to a party *623 who "prevails" under the statute. Although the terminology varies slightly from statute to statute—some statutes use the familiar phrase "prevailing party," while others require a fee claimant to "substantially prevail," or "finally prevail" to establish eligibility for a fee award—in Buckhannon Board & Care Home, Inc. v. West Virginia, 532 U.S. 598, 600, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001), the United States Supreme Court declared that no interpretive difference exists on this basis across these slightly varied fee-shifting statutes. Id. at 603 n. 4, 121 S.Ct. 1835. Relying on Buckhannon, which construes two of the multitude of federal statutes within this prevail-rooted family,[2] DaimlerChrysler contends a party may recover attorney fees under these federal fee-shifting statutes only after securing either a judgment or a court-ordered consent decree. We disagree.

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983 So. 2d 620, 2008 Fla. App. LEXIS 5857, 2008 WL 1809321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-martin-v-daimlerchrysler-corp-fladistctapp-2008.