State, Office of the Attorney General v. Shapiro & Fishman, LLP

59 So. 3d 353, 2011 Fla. App. LEXIS 5962, 2011 WL 1563755
CourtDistrict Court of Appeal of Florida
DecidedApril 27, 2011
Docket4D10-4526
StatusPublished
Cited by13 cases

This text of 59 So. 3d 353 (State, Office of the Attorney General v. Shapiro & Fishman, LLP) 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
State, Office of the Attorney General v. Shapiro & Fishman, LLP, 59 So. 3d 353, 2011 Fla. App. LEXIS 5962, 2011 WL 1563755 (Fla. Ct. App. 2011).

Opinion

LEVINE, J.

The issue presented in this appeal is whether the trial court erred in quashing a civil investigative subpoena duces tecum issued by the Office of the Attorney General and served on appellee Shapiro & Fishman, LLP, a law firm. We find the trial court did not err since the Attorney General’s investigative subpoena, issued exclusively under the statutory authority of Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA), sections 501.201-.213, Florida Statutes, was issued to investigate actions of the appellee law firm not covered under the rubric of “trade or commerce” as clearly required by this statute. Since we find the Attorney General failed to establish that the object of the civil subpoena was connected to “trade or commerce,” we need not address the other issues raised by the appellant, and we affirm. 1

On August 6, 2010, the Office of the Attorney General issued a civil investigative subpoena to Shapiro & Fishman, a law firm which provides legal services in foreclosure cases. The subpoena sought production of documents related to thirteen different subjects involving the law firm’s representation of lending institutions in foreclosure cases. The subpoena sought information on any corporations, companies, partnerships, or associations in which the law firm and the named partners had any interest. It also asked for the names of all servicing companies the firm had represented in the past five years; all nondisclosure agreements the firm executed in the past five years with employees, subcontractors, and independent contractors; copies of checks or evidence of other payment from plaintiffs represented in foreclosure cases by the firm; and documents on the amount paid to the firm’s employees, subcontractors, and independent contractors for completion of foreclosure cases within a certain time period.

*355 The subpoena clearly indicated that the Attorney General relied exclusively on the statutory authority of FDUTPA. The subpoena stated, in pertinent part, as follows: “The general purpose and scope of this investigation extends to possible unfair and deceptive trade practices which involve the advertising and marketing practices of the above named recipient [the Shapiro Firm].” Nowhere in the subpoena, however, did the Attorney General include a specific request for information related to the law firm’s advertising or marketing practices.

The law firm filed a petition to quash the subpoena. The Attorney General filed a response to the motion to quash and alleged that the subpoena was, in fact, a response to complaints alleging that the law firm had been fabricating or presenting false or misleading documents for utilization in foreclosure cases. 2 The trial court held a hearing and quashed the subpoena for several reasons, including that the Attorney General did not have the authority to subpoena the law firm under the FDUTPA statute. This appeal of the trial court’s quashing of the subpoena ensues. 3

We review this issue on appeal de novo. See Murray v. Manner Health, 994 So.2d 1051, 1056 (Fla.2008) (“Statutory interpretation is a question of law subject to de novo review.”); Armstrong v. Harris, 773 So.2d 7, 11 (Fla.2000) (providing that “the standard of review for a pure question of law is de novo”).

The Office of the Attorney General issued a civil investigative subpoena pursuant to section 501.206, Florida Statutes, a part of FDUTPA. FDUTPA was designed in part to “protect the consuming public and legitimate- business enterprises from those who engage in unfair methods of competition, or .unconscionable, deceptive, or unfair acts. or practices in the conduct of any trade or commerce.” § 501.202(2), Fla. Stat.

The term “trade or commerce” is specifically defined in section 501.203(8) of the act:

“Trade or commerce” means the advertising, soliciting, providing, offering, or distributing, whether by sale, rental, or -otherwise, of any good or service, or any property, whether tangible or intangible, or any other article, commodity, or thing of value, wherever situated. “Trade or commerce” shall include the conduct of any trade or eotomerce, however denominated, including any nonprofit or not-for-profit person or activity.

In Florida, two federal courts have addressed issues similar to the case at bar. In Trent v. Mortgage Electronic Registration Systems, Inc., 618 F.Supp.2d 1356 (M.D.Fla.2007), a class action suit was initiated by mortgage borrowers against the successor to the original lender, based on the successor’s actions in foreclosing on mortgages. The borrowers alleged that the successor to the original lenders violated FDUTPA by engaging in the unlicensed practice of law and by using deceptive means to collect debts on residential mortgage loans.

The district court found that the successors did not, in fact, engage in “unfair” and *356 “deceptive” acts. However, the district court stated:

Even assuming arguendo the facts as pled establish that MERS engaged in deceptive acts or unfair trade practices, MERS’ actions do not qualify as “trade or commerce” under the Act.... The Court agrees with MERS that under the plain language of the statute, MERS did not “advertise, solicit, provide, offer or distribute” anything.

Id. at 1365 n. 12. The district court concluded:

What MERS did is obtain a legal interest in a note from third party lenders (becoming the “holder” of the note so that it could lawfully foreclose) and then proceeded to foreclosure. That MERS communicated pre-suit with plaintiffs that it was a “creditor” or “owned” the debt does not fall within the purview of “trade or commerce.”

Id.

In Kelly v. Palmer, Reifler, & Associates, P.A., 681 F.Supp.2d 1356 (S.D.Fla. 2010), individuals who received civil theft demand letters -from a law firm, threatening to file a lawsuit if payments were not made, filed a class action suit against the law firm alleging, among various claims, a violation of FDUTPA by that law firm. The district court granted summary judgment for the law firm on claims of FDUT-PA violations, concluding that the plaintiffs did not satisfy the “ ‘trade or commerce’ element of FDUTPA.” Id. at 1374. The Kelly court concluded:

[W]e do not agree with Plaintiffs that the Palmer Law Firm’s pursuit of civil theft remedies ... falls within the meaning of “trade or commerce” such that the firm could be subject to liability under FDUTPA. While it has some initial appeal, we do not find that the firm’s offer to settle and release claims for money constitutes soliciting and offering to Plaintiffs a “thing of value” under the act.

Id. at 1375. “The Palmer Law Firm’s acts-conduct ostensibly occurring during the exercise of a legal remedy-had zero connection whatsoever to any ‘trade or commerce.’ ” Id

We are persuaded by the Trent and Kelly

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59 So. 3d 353, 2011 Fla. App. LEXIS 5962, 2011 WL 1563755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-office-of-the-attorney-general-v-shapiro-fishman-llp-fladistctapp-2011.