SERVICE INSURANCE COMPANY, FLAQUAD, INC., GEORGE HUNT, INC., AND HUNT BROTHERS CONSTRUCTION COMPANY, INC., APPELLANTS,
v.
GULF STEEL CORPORATION, A FLORIDA CORPORATION, APPELLEE

Fla. 2d DCA | 1981-02-25
No. 80-476
BOARDMAN and CAMPBELL, JJ., concur.
394 So. 2d 550 Florida District Court of Appeal, Second District (1981) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

In a mechanic's lien foreclosure action, the trial court awarded $9,000 in attorney fees to the prevailing party Gulf Steel Corporation. The appellants challenged this award as insufficiently supported by evidence. The appellate court reversed and remanded, holding that the trial court failed to adequately consider all statutory factors when determining reasonable attorney fees.


Holding

The trial court erred by awarding attorney fees that exceeded expert testimony recommendations without adequately considering and applying all factors set forth in Disciplinary Rule 2-106(B), Code of Professional Responsibility. The award must be reversed and the case remanded for a new hearing where the trial court fully explores all statutory factors in determining a reasonable fee.


Headnotes

[1] A trial court must consider all factors enumerated in Disciplinary Rule 2-106(B) when determining reasonable attorney fees.

[2] Expert testimony on attorney fees must address the factors outlined in Disciplinary Rule 2-106(B) to be sufficient evidence.

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Key Quotes

“the court awarded fees in excess of those recommended by the witnesses, where a contingency agreement was not shown”

Identifies the core error: the trial court exceeded expert recommendations without proper justification

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Facts & Procedural History

Gulf Steel Corporation prevailed in a mechanic's lien foreclosure action against Service Insurance Company and related parties. At the fee-setting hea…

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Opinion of the Court
HOBSON, Acting Chief Judge.

HOBSON, Acting Chief Judge.

Appellants, Service Insurance Company, Flaquad, Inc., George Hunt, Inc., and Hunt Brothers Construction Company, Inc., appeal a final judgment awarding $9,000 attorney fees to appellee Gulf Steel Corporation in a mechanic’s lien foreclosure action.

The issue in this case is whether appellee provided sufficient evidence on which the trial court based its award of attorney fees. At the hearing, appellee presented attorney John Stewart as its expert witness on the matter. Mr. Stewart indicated that he had reviewed appellee’s counsel’s file and the court file. When asked if he had formed an opinion as to a reasonable attorney fee, he answered:

Your Honor, it is a minimum that we would charge in this area of $6,000, and that is just a minimum.

I would suggest to the court that more could be assessed. Six to $7,500, perhaps even $8,000, and that is based upon a complete review of the file and all of those intangible and tangible matters that the attorney for the Plaintiff has suggested or commented on.

Mr. Stewart further stated that he would “not ... feel uncomfortable, if this was to receive even an $18,000 attorney’s fees on the basis of being contingent and on the basis of being recovered.”

Appellants called attorney Edgar W. McCurry as their expert witness. Mr. McCurry testified that his fee in this type of case is generally billed on a per-hour basis at $50 to $75 per hour. Based upon that rate and upon the assumption that appellee’s counsel spend 50 hours on the case, Mr. McCurry testified that a reasonable fee would be between $2,500 and $3,750.

Appellee’s counsel, Mr. Kiernan, stated for the record that his firm was general counsel for Gulf Steel Corporation and not on an hourly fee basis. He had been under the impression that the court would set the fee in the case and that the firm would accept whatever amount the court set. He further stated that he had expended approximately 30 hours on the case. There is no other evidence in the record as to any fee agreement between Mr. Kiernan and appellee.

Section 713.29, Florida Statutes (1979), provides that the prevailing party in an action to enforce a lien is entitled to recover reasonable attorney fees to be determined by the court. This determination should be based upon consideration of all the factors listed in Disciplinary Rule 2-106(B), Code of Professional Responsibility, as follows:

1) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly.

2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer. 3) The fee customarily charged in the locality for similar legal services.

4) The amount involved and the results obtained.

5) The time limitations imposed by the client or by the circumstances.

6) The nature and length of the professional relationship with the client.

7) The experience, reputation, and ability of the lawyer or lawyers performing the services.

8) Whether the fee is fixed or contingent.

It is apparent from the record in this case that the evidence presented by both expert witnesses and appellee’s counsel failed to deal with several of the criteria mentioned above. Moreover, the court awarded fees in excess of those recommended by the witnesses, where a contingency agreement was not shown. Although the court is not bound by the opinions of expert witnesses, these opinions must be considered in conjunction with a full and thoughtful exploration of the factors set out in DR 2-106(B). In this respect, the trial court erred.

We, therefore, reverse the award of $9,000 attorney fees and remand this cause for a hearing in order to allow the trial court to take testimony in compliance with Disciplinary Rule 2-106(B), Code of Professional Responsibility.

REVERSED and REMANDED.

BOARDMAN and CAMPBELL, JJ., concur.


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Citator

Cited By

  • Serv. Ins. Co. v. Gulf Steel Corp., 412 So. 2d 967 (Fla. 2d DCA 1982)
    …ard to this court, and this [*968] court reversed and remanded for a new hearing encompassing all the factors required to be considered under Disciplinary Rule 2-106(B), Code of Professional Responsibility. Service Insurance Co. v. Gulf Steel Corp., 394 So. 2d 550 (Fla.2d DCA 1981). On remand, a new hearing was held on May 12 and June 2,1981. Appellee’s expert opined, after consideration of all appropriate factors, that in view of all the services rendered in the case from the beginning of appellee’s law fir…

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