Southern-Owners Insurance Company v. Maranda Homes, Inc. of Florida

CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 5, 2023
Docket20-11526
StatusUnpublished

This text of Southern-Owners Insurance Company v. Maranda Homes, Inc. of Florida (Southern-Owners Insurance Company v. Maranda Homes, Inc. of Florida) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern-Owners Insurance Company v. Maranda Homes, Inc. of Florida, (11th Cir. 2023).

Opinion

USCA11 Case: 20-11526 Document: 62-1 Date Filed: 05/05/2023 Page: 1 of 17

[DO NOT PUBLISH]

In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 20-11526 ____________________

SOUTHERN-OWNERS INSURANCE COMPANY, Plaintiff-Appellee, versus MARONDA HOMES, INC. OF FLORIDA, JROD PLASTERING, LLC,

Defendants-Appellants,

JOSEPH MANALANSAN, et al.,

Defendants. USCA11 Case: 20-11526 Document: 62-1 Date Filed: 05/05/2023 Page: 2 of 17

2 Opinion of the Court 20-11526

Appeals from the United States District Court for the Middle District of Florida D.C. Docket No. 3:18-cv-01305-TJC-MCR ____________________

Before BRANCH, GRANT, and TJOFLAT, Circuit Judges. BRANCH, Circuit Judge: Maronda Homes, Inc. of Florida, and JROD Plastering, LLC, appeal from the district court’s dismissal of their motions for attorneys’ fees under Fla. Stat. § 627.428. 1 The district court concluded that it lacked subject-matter jurisdiction to entertain Maronda’s and JROD’s motions because it already had dismissed the underlying action for lack of subject-matter jurisdiction. In doing so, the district court disagreed with the reasoning of Prime Insurance Syndicate, Inc. v. Soil Tech Distributors, Inc., 270 F. App’x 962 (11th Cir. 2008), an unpublished opinion of this Court. In Prime, we held that awards of attorneys’ fees under Fla. Stat. § 627.428 are collateral issues to the merits of a case and are therefore “within the court’s jurisdiction, even after the court [has] determined it lack[s] subject matter jurisdiction over the underlying suit.” Id. at 965. But in a published opinion twenty-

1 Fla. Stat. § 627.428 was repealed by the Florida legislature in March 2023. See 2023 Fla. Laws ch. 2023-15, § 11. USCA11 Case: 20-11526 Document: 62-1 Date Filed: 05/05/2023 Page: 3 of 17

20-11526 Opinion of the Court 3

four years earlier, we held that awards of attorneys’ fees under Fla. Stat. § 627.428 are integral to the merits, Certain British Underwriters at Lloyds of London v. Jet Charter Serv., Inc., 739 F.2d 534, 535 (11th Cir. 1984), which means that a district court would lack subject-matter jurisdiction to award such fees if it has already dismissed the underlying action for lack of subject-matter jurisdiction. Because we are bound by our published opinion in Jet Charter, we affirm. I. Background On August 23, 2013, Maronda sold a house to Joseph and Chamroeun Manalansan. A few weeks later, the Manalansans sent Maronda a notice of construction defects related to the house’s stucco installation. Maronda had hired JROD to perform the stucco installation, and JROD maintained a commercial general liability insurance policy with Southern-Owners that listed Maronda as an “additional insured.” Maronda thus requested that Southern-Owners defend or indemnify it under JROD’s policy. Southern-Owners sued Maronda and JROD in the U.S. District Court for the Middle District of Florida, seeking a declaration that its policy did not cover the stucco damage. The district court dismissed Southern-Owners’s complaint for lack of subject-matter jurisdiction because Southern-Owners failed to USCA11 Case: 20-11526 Document: 62-1 Date Filed: 05/05/2023 Page: 4 of 17

4 Opinion of the Court 20-11526

meet the amount-in-controversy requirement of 28 U.S.C. § 1332. 2 Southern-Owners did not appeal that ruling. Maronda and JROD then filed motions for attorneys’ fees under Fla. Stat. § 627.428. 3 Southern-Owners responded that the district court lacked subject-matter jurisdiction to entertain the motions because it already had dismissed the underlying action for lack of subject-matter jurisdiction.

2 Southern-Owners invoked 28 U.S.C. § 1332 (diversity jurisdiction) as the basis for the district court’s subject-matter jurisdiction. Section 1332 imposes a $75,000 “amount-in-controversy” requirement. 28 U.S.C. § 1332 (“The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000 . . . .”). 3 Fla. Stat. § 627.428 (1982), which governs this case, provides: (1) Upon the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured’s or beneficiary’s attorney prosecuting the suit in which the recovery is had. (2) As to suits based on claims arising under life insurance policies or annuity contracts, no such attorney’s fee shall be allowed if such suit was commenced prior to expiration of 60 days after proof of the claim was duly filed with the insurer. (3) When so awarded, compensation or fees of the attorney shall be included in the judgment or decree rendered in the case. USCA11 Case: 20-11526 Document: 62-1 Date Filed: 05/05/2023 Page: 5 of 17

20-11526 Opinion of the Court 5

The district court agreed with Southern-Owners and dismissed Maronda’s and JROD’s motions. It concluded that awards of attorneys’ fees under Fla. Stat. § 627.428 are integral to the merits and that it thus lacked subject-matter jurisdiction to consider Maronda’s and JROD’s motions. Maronda and JROD timely appealed. II. Analysis The district court properly concluded that it lacked subject- matter jurisdiction to consider Maronda’s and JROD’s motions after it already had dismissed the underlying action for lack of subject-matter jurisdiction because awards of attorneys’ fees under Fla. Stat. § 627.428 are integral to the merits. 4 See Jet Charter, 739 F.2d at 536. “Federal courts are courts of limited jurisdiction” and “[i]t is to be presumed that a cause lies outside this limited jurisdiction,” unless the party asserting jurisdiction proves otherwise. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Maronda and JROD argue that the district court had jurisdiction to consider their motions, even though it already had dismissed the underlying

4 “We review questions of subject-matter jurisdiction de novo.” City of Miami Gardens v. Wells Fargo & Co., 931 F.3d 1274, 1282 (11th Cir. 2019). Subject- matter jurisdiction is the court’s “statutory or constitutional power to adjudicate the case.” Steel Co. v.

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Bluebook (online)
Southern-Owners Insurance Company v. Maranda Homes, Inc. of Florida, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-owners-insurance-company-v-maranda-homes-inc-of-florida-ca11-2023.