Seminole County v. Delco Oil, Inc.

669 So. 2d 1162, 1996 Fla. App. LEXIS 2682, 1996 WL 124830
CourtDistrict Court of Appeal of Florida
DecidedMarch 22, 1996
Docket94-1859
StatusPublished
Cited by10 cases

This text of 669 So. 2d 1162 (Seminole County v. Delco Oil, 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
Seminole County v. Delco Oil, Inc., 669 So. 2d 1162, 1996 Fla. App. LEXIS 2682, 1996 WL 124830 (Fla. Ct. App. 1996).

Opinion

669 So.2d 1162 (1996)

SEMINOLE COUNTY, Appellant,
v.
DELCO OIL, INC., etc., et al., Appellees.

No. 94-1859.

District Court of Appeal of Florida, Fifth District.

March 22, 1996.

*1163 Robert A. McMillan and Lonnie N. Groot, Deputy County Attorneys, and Henry M. Brown, Assistant County Attorney, Sanford, for Appellant.

F.A. Ford, Jr., of Landis, Graham, French, Husfeld, Sherman & Ford, P.A., DeLand, for Appellees.

ON MOTION FOR REHEARING AND CLARIFICATION

PER CURIAM.

Appellant's Motion for Rehearing is granted in part and denied in part. We withdraw our prior opinion and substitute the following in its stead.

Appellant, Seminole County ["the County"], seeks review of an attorney's fee award in an eminent domain action. Because we conclude that the method utilized by the lower court in calculating a reasonable fee does not accord with the statutory requirements, we reverse.

In March 1993, the County filed a petition in eminent domain to take certain real property (parcel 105), a Fina gas station, belonging to Delco Oil, Inc. ["Delco"], at the intersection of Semoran Boulevard (State Road 436) and Howell Branch Road in Seminole County. The parties' negotiations quickly led to a stipulation on the compensation due Delco, and an order of taking was entered on June 14, 1993.

On April 22, 1994, a motion to assess attorney's fees and tax costs was filed by Delco. The contract between Delco and its counsel provided for a fee of twenty-five percent of the benefits obtained, or the amount awarded by the court, whichever was greater. Delco claimed that the attorney's services increased the ultimate settlement award by $270,000 *1164 and that twenty-five percent of the benefits[1] totalled $67,500.

The County recognized its obligation to pay a reasonable fee pursuant to section 73.092, Florida Statutes (1993) but contested the amount claimed. The County pointed out that since settlement of the case was reached quickly and since Delco's attorneys spent only 29.3 hours on the case, an award of $67,500 would average an hourly rate of $2,303.75. The County insisted that the lodestar formula should control the computation of reasonable attorney's fees in this eminent domain proceeding. Any alternative approach, argued the County, was invalid as an encroachment by the legislature on the purview of the Florida Supreme Court in regulating attorney practice.

In May 1994, a hearing on the issue of attorney's fees was held. Assistant County Attorney Henry Brown testified for the County. Brown described the negotiations surrounding the settlement of the condemnation award. Brown explained that the County's original declaration of taking was approximately $225,000, but during a telephone conversation, Attorney F.A. Ford, Jr. ["Ford"], Delco's counsel, explained that he believed the estimate was low because it failed to properly consider the cost of moving gas tanks located on the premises. Brown checked with the County's hazardous materials department and determined that, in fact, it would be more complicated than the original offer had taken into consideration, so the County made an adjustment of about $100,000 and made a good faith deposit of $325,000 into the registry of the court. Delco then asserted business damages in their answer and the County's experts produced a business damage report showing $136,075. Upon this information, the County was willing to offer $461,750 and Ford countered with $565,681. The parties agreed to settle at an intermediate figure.

In his testimony, Mr. Ford generally agreed with the county's description of the negotiations. Ford testified that he does not charge fees on an hourly basis. ("I charge on the contract.") The contract calls for compensation on the basis of the percentage of the award. He testified that he expects the client to pay him whatever portion of the fee the county does not pay.

Gordon "Stumpy" Harris testified as an expert for Delco in the field of "condemnation attorney's fees." He testified that he was familiar with the statutory criteria for fee awards in condemnation cases and opined (in accordance with the statute) that the primary factor to be considered was the benefit conferred upon the client by the attorney's services; all other statutory factors were secondary. He testified that in determining a fee based upon benefit, it is "appropriate" under Florida law to apply a standard percentage of the overall benefit as the fee. He testified that in this type of case, "a twenty-five percent contingency is clearly the market." He examined the contract between Delco and its attorneys and determined it was an appropriate fee arrangement. Harris then opined (in accordance with the definition of "benefit" in the statute) that the "betterment" in this case was $270,000.

In calculating an appropriate attorney's fee, Harris first determined that the lodestar fee was $8,120. That figure was based upon 46.2 hours at $175 per hour.[2] He *1165 stated that he figured lodestar to get a feel for the time and felt that the time allocated was "extraordinarily reasonable." He then considered a number of ways to calculate the fees in this case, all of which he considered reasonable. He testified he would typically have had a "10/25 fee contract" (ten percent of the initial offer plus twenty-five percent of the benefit), which would have yielded a fee of $90,000. When using a "third of the benefit" method, Harris arrived at a fee of $90,000 as well. Under the formula contained in the revised version of the statute, effective October 1994, Harris arrived at a figure of $88,333.33. He stated that lodestar plus twenty-five percent yielded a fee of $75,000. Twenty-five percent of the benefit (the same as the Delco fee agreement) yielded a fee of $67,500. Lodestar plus twenty percent equalled $62,000. Finally, lodestar plus fifteen percent yielded $49,000. He stated that all of these calculations provided him with a range of reasonableness between $49,000-50,000 and $90,000. He then testified that it was his opinion that a twenty-five percent fee of $67,500, as provided in the Delco fee agreement, was reasonable.

On cross-examination, Harris agreed that the case did not take much effort. He further stated that even if fewer attorney hours were actually spent on the case, his overall recommendation of $67,500 would not change, because of the figure's relationship to the betterment. It did not matter that the fee works out to well over two thousand dollars per hour of attorney labor.

The statute that governs the award of attorney's fees in this case is section 73.092, Florida Statutes (1993). This statute contains significant amendments made in 1990[3] to the predecessor statute, which had been enacted in 1977. Most notably, the 1990 version of this statute requires a weighing of various statutory factors. Under the 1990 version of the statute, in setting the fee the court is instructed to "give greatest weight" to the benefits resulting to the client from the legal services rendered. A series of additional factors are to be given "secondary consideration." These include:

(a) The novelty, difficulty, and importance of the questions involved.
(b) The skill employed by the attorney in conducting the cause.
(c) The amount of money involved.
(d) The responsibility incurred and fulfilled by the attorney.
(e) The attorney's time and labor reasonably required adequately to represent the client in relation to the benefits resulting to the client.

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Bluebook (online)
669 So. 2d 1162, 1996 Fla. App. LEXIS 2682, 1996 WL 124830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seminole-county-v-delco-oil-inc-fladistctapp-1996.