LAWRENCE F. BROWN AND DELORES M. BROWN, PETITIONERS,
v.
FINANCIAL INDEMNITY COMPANY, RESPONDENT

Fla. 4th DCA | 1979-02-07
No. 78-2179
CROSS and LETTS, JJ., concur.
366 So. 2d 1273 Florida District Court of Appeal, Fourth District (1979) Negative Treatment
Cited by 16 cases

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Synopsis

Brown and Brown seek certiorari review of a Circuit Court decision that reversed a County Court judgment in their favor on an indemnification contract dispute and awarded appellate attorney's fees to Financial Indemnity Company. The court holds that under indemnity contracts, all attorney's fees incurred by the indemnitee, including appellate fees, are recoverable as part of damages without explicit contractual language.


Holding

An indemnitee is entitled to recover all attorney's fees incurred, including appellate fees, as part of damages under an indemnity contract without requiring explicit contractual language authorizing appellate attorney's fees, distinguishing indemnity contracts from statutes or promissory notes.


Headnotes

[1] An indemnitee is generally entitled to recover reasonable attorney's fees and legal expenses incurred as damages when compelled to pay them as a result of suits related t…

[2] Attorney's fees incurred on appeal are recoverable as part of the damages under an indemnity contract, even if the contract does not specifically mention appellate attorn…

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Key Quotes

“As a general rule an indemnitee is entitled to recover, as a part of the damages, reasonable attorney's fees, and reasonable and proper legal costs and expenses, which he is compelled to pay as a result of suits by or against him in reference to the matter against which he is indemnified”

Establishes the fundamental principle that attorney's fees are recoverable as damages in indemnity contracts

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Facts & Procedural History

Financial Indemnity Company sued the Browns in County Court of Brevard County to recover under an indemnification agreement. The County Court granted …

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Opinion of the Court
DOWNEY, Chief Judge.

DOWNEY, Chief Judge.

Petitioners seek certiorari review of an order of the Circuit Court reversing an order of the County Court.

Respondent sued petitioners in the County Court of Brevard County to recover on an indemnification agreement. The County Court granted a judgment on the pleadings in favor of petitioners. On appeal before a two judge Circuit Court panel the order under review was reversed and, in addition, the appellants/respondents were granted attorney’s fees for the appeal if respondent prevailed on the merits in the trial court. It is the latter aspect of the Circuit Court order which petitioners claim is a departure from the essential requirements of law.

Petitioners contend that the contract of indemnity relied upon by the respondents does not specifically provide for attorney’s fees on appeal. Therefore, since the contract in question predates Section 59.46, Florida Statutes (1977),1 no allowance can be made for appellate attorney’s fees incurred by the indemnitee. Petitioners rely upon Ohio Realty Investment Corp. v. Southern Bank of West Palm Beach, 300 So. 2d 679 (Fla.1974), and Goodfriend v. Druck, 309 So. 2d 236 (Fla. 4th DCA 1975), as well as Lake Killarney Apartments, Inc. v. Estate of Thompson, 283 So. 2d 102 (Fla.1973), and Sunbeam Enterprises, Inc. v. Upthegrove, 316 So. 2d 34 (Fla.1975).

Respondent, on the other hand, contends that those cases are not applicable here because they were involved with either a statute, or a promissory note providing for attorney’s fees, none of which specifically provided for attorney’s fees on appeal. But in this case we are dealing with an agreement of indemnity, and the recovery of an attorney’s fee is generally considered as part of the damages covered by a contract of this nature. In Thomas Awning & Tent Co., Inc. v. Toby’s Twelfth Cafeteria, Inc., 204 So. 2d 756 (Fla. 3rd DCA 1967), the court held attorney’s fees in both the trial court and on appeal were recoverable. Although the court did not specify attorney’s fees on appeal in Fontainbleau Hotel Corporation v. Postol, 142 So. 2d 299 (Fla. 3rd DCA 1962), the language used is consistent with the holding in the Thomas Awning case. As the court in both Fonta-inbleau and Thomas Awning pointed out:

“ ‘As a general rule an indemnitee is entitled to recover, as a part of the damages, reasonable attorney’s fees, and reasonable and proper legal costs and expenses, which he is compelled to pay as a result of suits by or against him in reference to the matter against which he is indemnified * * *.’ ” 142 So. 2d at 300; 204 So. 2d at 757.

We perceive the distinction between these cases and those relied upon by petitioners to be that when suing on an indemnity contract all attorney’s fees incurred are a part of the indemnitee’s damages.

Accordingly, we find no departure from the essential requirements of law and the petition for writ of certiorari is denied.

CROSS and LETTS, JJ., concur. . Section 59.46, Florida Statutes (1977), provides that a statute or contract providing for payment of attorney’s fees shall be construed to include appellate attorney’s fees.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Am. Home Assurance Co. v. City OF OPA Locka, 368 So. 2d 416 (Fla. 3d DCA 1979)
    …ants. . See n.2, supra. . See n.3, supra. . Travelers did not secure an assignment from the city or LeMeur of any rights either may have had against American Home. . With respect, we disagree with the holding in Brown v. Financial Indemnity Co., 366 So. 2d 1273 (Fla. 4th DCA 1979) that a successful indemnitee may recover attorney’s fees for the prosecution of the indemnification case itself, even without a contractual or statutory basis for such an allowance. The Brown opinion cites only our decisions in F…
  • Am. & Foreign Ins. Co. v. AVIS Rent-A-Car Sys., Inc., 401 So. 2d 855 (Fla. 1st DCA 1981)
    …hat part of the trial court’s judgment which had awarded attorney’s fees for successful prosecution of the indemnification action. In its opinion the court noted, at footnote 7, its disagreement with the case of Brown v. Financial Indemnity Company, 366 So. 2d 1273 (Fla. 4th DCA 1979), which held that a successful indemnitee could recover attorney’s fees for the prosecution of the indemnification case itself. The general rule appears to be that attorney’s fees incurred in defense of a claim indemnified against…
  • Sholkoff v. Boca Raton Cmty. Hosp., Inc., 693 So. 2d 1114 (Fla. 4th DCA 1997)
    …s generally entitled to recover as part of general damages the reasonable cost of an attorney for the matter. See, e.g., American and Foreign Ins. Co. v. Avis Rent-A-Car System Inc., 401 So. 2d 855 (Fla. 1st DCA 1981); Brown v. Financial Indem. Co., 366 So. 2d 1273 (Fla. 4th DCA), cert. denied, 378 So. 2d 342 (Fla.1979). In that instance, the law has no difficulty in implying an obligation to pay the attorney’s fees of another. We understand Sholkoff to mean, by his argument of strict construction, that all c…

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