Trace Elements, Inc. v. Nadja MacKensen

CourtSupreme Court of Florida
DecidedJuly 2, 2026
DocketSC2024-1274
StatusPublished

This text of Trace Elements, Inc. v. Nadja MacKensen (Trace Elements, Inc. v. Nadja MacKensen) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trace Elements, Inc. v. Nadja MacKensen, (Fla. 2026).

Opinion

Supreme Court of Florida ____________

No. SC2024-1274 ____________

TRACE ELEMENTS, INC., Petitioner,

vs.

NADJA MACKENSEN, et al., Respondents.

July 2, 2026

MUÑIZ, J.

Florida Rule of Civil Procedure 1.442 governs “all proposals for

settlement authorized by Florida law,” including those made under

the offer of judgment statute, section 768.79. Rule 1.442(c)(3)

addresses joint proposals for settlement, that is, proposals made by

or to multiple parties. It says that “[a] joint proposal must state the

amount and terms attributable to each party.” In the decision

under review, the Fourth District Court of Appeal held that this

apportionment rule does not apply to a “joint proposal regarding a

unified, single claim.” Mackensen v. Trace Elements, Inc., 388 So. 3d 815, 817 (Fla. 4th DCA 2024). That holding expressly and

directly conflicts with the decision of the Second District Court of

Appeal in Cobb v. Durando, 111 So. 3d 277 (Fla. 2nd DCA 2013).

Consistent with our precedents, which mandate strict enforcement

of the rule 1.442(c)(3) apportionment requirement, we now quash

the Fourth District’s decision below and approve the Second

District’s decision in Cobb.

I

Wolfgang and Nadja Mackensen, a married couple, contracted

with professional design company Trace Elements to oversee

renovations of their vacation rental property in Vero Beach. After

Trace Elements prematurely terminated performance, the

Mackensens sued for breach of contract and unjust enrichment.

The company countersued for breach of contract and tortious

interference with a business relationship.

Before trial, the Mackensens served a proposal for settlement 1

to Trace Elements, stating they were willing to accept a lump sum

1. As we will explain, the Mackensens eventually sought attorney’s fees under section 768.79, Florida Statutes. While section 768.79 uses the term “demand for judgment” to refer specifically to a settlement offer made by a plaintiff to a defendant,

-2- of $10,000 in full settlement of the action. In relevant part, their

proposal said:

The Plaintiffs/Counter-Defendants offer to accept a total sum of TEN THOUSAND DOLLARS and 00/100 ($10,000.00) from the Defendant/Counter-Plaintiff in full settlement of this action and, upon acceptance and clearance of the payment, the Plaintiffs/Counter- Defendants will file a voluntary dismissal, with prejudice, of the Complaint filed against the Defendant/Counter- Plaintiff and the Defendant/Counter-Plaintiff will file a voluntary dismissal, with prejudice, of the Countercomplaint filed against the Plaintiffs/Counter- Defendants.

Mackensen, 388 So. 3d at 817.

Trace Elements rejected the proposal, the case went to trial,

and the jury ultimately awarded the Mackensens $41,273.70 on

their breach of contract claim.2 The Mackensens moved for

attorney’s fees and costs under section 768.79. But the trial court

denied the motion after concluding that their settlement proposal

was invalid for failure to comply with rule 1.442(c)(3)’s

rule 1.442 refers to a settlement offer made by either a plaintiff or a defendant as a “proposal for settlement.” This opinion will use the term “proposal for settlement” to refer to the Mackensens’ offer.

2. Trace Elements received nothing on its competing breach of contract claim, and the trial court granted the Mackensens a directed verdict on Trace Elements’ claim for tortious interference with a business relationship.

-3- apportionment requirement.

The Mackensens appealed to the Fourth District, which

reversed and remanded for an award of attorney’s fees. Id. at 816.

The district court acknowledged that rule 1.442(c)(3) requires joint

proposals to state the amount and terms attributable to each party.

Id. at 816-17. Nevertheless, it held that the Mackensens’

settlement proposal “was a joint proposal regarding a unified, single

claim, which did not require apportionment to comply with rule

1.442.” Id. at 817.

The Fourth District’s decision expressly and directly conflicts

with the Second District Court of Appeal’s decision in Cobb. There,

married homeowners served an unapportioned settlement proposal

to a roofing contractor, seeking to settle their unified, single breach

of contract claim. 111 So. 3d at 277. The Second District held that

the joint proposal was invalid under rule 1.442(c)(3) for its failure to

apportion the proposal between the plaintiff homeowners. Id. at

278.

We accepted jurisdiction after Trace Elements sought our

review of the Fourth District’s decision in Mackensen. See art. V,

§ 3(b)(3), Fla. Const.

-4- II

As we have noted, this case involves section 768.79, the

statute under which the Mackensens sought attorney’s fees, and

rule 1.442, which implements the statute. Before turning to the

parties’ arguments, we briefly describe the relevant contents of the

statute and the rule.

Section 768.79 “provides a sanction against a party who

unreasonably rejects a settlement offer” and “generally creates a

right to recover reasonable costs and attorney[’s] fees when a party

has satisfied the terms of the statute and rule.” Att’ys’ Title Ins.

Fund, Inc. v. Gorka, 36 So. 3d 646, 649 (Fla. 2010). The statute

provides in relevant part:

(1) In any civil action for damages filed in the courts of this state, . . . [i]f a plaintiff files a demand for judgment which is not accepted by the defendant within 30 days and the plaintiff recovers a judgment in an amount at least 25 percent greater than the offer, she or he shall be entitled to recover reasonable costs and attorney’s fees incurred from the date of the filing of the demand.

§ 768.79(1), Fla. Stat. (2022).

To be valid under the statute, a proposal must:

(a) Be in writing and state that it is being made pursuant to this section.

-5- (b) Name the party making it and the party to whom it is being made. (c) State with particularity the amount offered to settle a claim for punitive damages, if any. (d) State its total amount.

§ 768.79(2), Fla. Stat. When the specified conditions are met, a

party is entitled to fees under the statute, unless the trial court

determines that the proposal for settlement “was not made in good

faith.” See § 768.79(1), (8)(a), Fla. Stat.

While section 768.79 creates the substantive right to an

attorney’s fees award, rule 1.442 “provides the method and means

of implementing this right by outlining the required form and

content of a proposal for settlement.” Gorka, 36 So. 3d at 649.

Subdivision (c)(3) of the rule says:

A proposal may be made by or to any party or parties and by or to any combination of parties properly identified in the proposal. A joint proposal must state the amount and terms attributable to each party.

Fla. R. Civ. P. 1.442(c)(3) (emphasis added). We have said that this

apportionment rule implements the textual requirement of section

768.79(2)(b) that a proposal “name the party making it and the

party to whom it is being made.” See Kuhajda v. Borden Dairy Co.

of Ala., LLC, 202 So. 3d 391, 394-95 (Fla. 2016); Gorka, 36 So. 3d

-6- at 650 (“Reading the plain language of the statute, we recognize[]

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