L. ROSS, INC., A FLORIDA CORPORATION, PETITIONER,
v.
R. W. ROBERTS CONSTRUCTION COMPANY, INC., TRANSAMERICA INSURANCE COMPANY, B.E. MCCALL AND THOMAS ADAIR, RESPONDENTS
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The Florida Supreme Court resolved a conflict between district courts regarding whether a 1982 statutory amendment repealing a 12.5% cap on attorney's fees in payment bond actions applies retroactively to pending cases. The Court held that the amendment is substantive rather than remedial and therefore does not apply retroactively to causes of action existing before its effective date.
The statutory amendment is substantive rather than remedial because it affects the substantive right to attorney's fees and the concomitant burden on the responsible party. Therefore, the amendment does not apply retroactively to causes of action existing before its effective date, and the 12.5% limitation applies to L. Ross's pending action.
[1] A statutory amendment repealing a limitation on attorney's fees is substantive and does not apply retroactively to causes of action that arose before the amendment's effe…
[2] A statutory change that affects and changes the measure of damages is a change in substantive law, not merely a procedural or remedial change.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The right to attorney fees is a substantive one, as is the burden on the party responsible for paying the fee. A statutory amendment affecting the substantive right and concomitant burden is likewise substantive.”
Establishes the Court's core holding that changes to attorney's fees limitations are substantive rather than remedial
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceL. Ross, Inc., a subcontractor, had a pending action against Transamerica Insurance Company on a payment bond when a statutory amendment effective Oct…
The full statement of facts, procedural history, and disposition for this case are member content.
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SHAW, Justice.
We have before us by petition for review L. Ross, Inc. v. R. W. Roberts Construction Co., 466 So. 2d 1096 (Fla.5th DCA 1985), due to express and direct conflict with American Cast Iron Pipe Co. v. Foote Brothers Corp., 458 So. 2d 409 (Fla.4th DCA 1984). We have jurisdiction pursuant to article V, section 3(b)(3), Florida Constitution.
The salient facts were stated by the district court as follows:
Section 627.428 (formerly section 627.-0127), Florida Statutes (1983), permits the recovery of attorney’s fees when insureds recover judgments against insurers. Section 627.756 (formerly 627.0905), Florida Statutes (1983), extends the application of section 627.428 to actions in which owners, laborers, materialmen and subcontractors recover judgments against sureties in actions on payment bonds. Section 627.756 originally contained a qualifying provision limiting attorney’s fees to not more than twelve and one-half percent of the judgment recovered. By statutory amendment effective October 1, 1982, this limitation on the amount of attorney’s fees was repealed. Appellant, a subcontractor, had an action pending against appellee Trans-america Insurance Company on a payment bond when the twelve and a half percent limitation was repealed. The trial court limited appellant’s recovery of attorney’s fees to twelve and a half percent ....
L. Ross, Inc., 466 So. 2d at 1097. The district court affirmed the trial court and refused to apply retroactively the statutory amendment repealing the twelve and one-half percent limitation to a cause of action that was already in existence at the time of the effective date of the amendment. The district court acknowledged conflict with American Cast Iron. Presented with virtually indistinguishable facts, the Fourth District Court of Appeal in American Cast Iron found the statutory amendment applicable because it construed the statute as remedial rather than substantive in that it did not create a new right or take away a vested right, but rather affected only the amount of attorney’s fees that could be recovered. Remedial statutes are excepted from the general rule against retrospective application of statutes. Village of El Portal v. City of Miami Shores, 362 So. 2d 275 (Fla.1978). We agree with Judge Cowart’s well-reasoned opinion in L. Ross, however. The right to attorney fees is a substantive one, as is the burden on the party responsible for paying the fee. A statutory amendment affecting the substantive right and concomitant burden is likewise substantive. As stated by Judge Cowart:
This argument [that the amendment is procedural, affecting only the measure of damages for vindication of an existing substantive right] fails to recognize that substantive rights do not exist in an absolute binary world but are relative and are often a matter of degree and that damages always follow the right and that any change in a substantive right normally changes the amount of damages resulting from a breach of that substantive right. Therefore, it cannot be reasoned that a statutory change that affects and changes the measure of damages is merely “remedial” and thus, procedural, and, therefore is not a change in the substantive law giving the substantive right which is the basis for the damages.
L. Ross, 466 So. 2d at 1097-98.
For the reasons stated above, we approve the decision under review and disapprove American Cast Iron.
It is so ordered.
BOYD, C.J., and ADKINS, OVERTON, McDONALD and EHRLICH, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (27 total)
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Bitterman v. Anette Bitterman, 714 So. 2d 356 (Fla. 1998)…ct Court of Appeal: The ability to collect attorney’s fees from an opposing party, as well as the obligation to pay such fees, is substantive in nature. L. Ross, Inc. v. R.W. Roberts Constr. Co., 466 So. 2d 1096, 1098 (Fla. 5th DCA 1985), approved, 481 So. 2d 484 (Fla.1986). Substantive rights cannot be adversely affected by the enactment of legislation once those rights have vested. Id. Nor may the legislature increase an existing obligation, burden or penalty as to a set of facts after those facts have occ…
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Arrow AIR, Inc. v. Walsh, 645 So. 2d 422 (Fla. 1994)…te that accomplishes a remedial purpose by creating substantive new rights or imposing new legal burdens as the type of “remedial” legislation that should be presumptively applied in pending cases. See L. Ross, Inc. v. R.W. Roberts Const. Co., Inc., 481 So. 2d 484 (Fla. 1986) (statute creating right to attorney’s fees could not be applied retroactively); City of Lakeland v. Catinella, 129 So. 2d 133, 136 (only statutes that do not create new or take away vested rights are exempt from the general rule against…
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Sissel Cooper v. AETNA Cas. & Sur. Co., 485 So. 2d 1367 (Fla. 2d DCA 1986)…terest. Southeast Title & Insurance Co. v. Austin, 202 So. 2d 179 (Fla.1967). We do find that the court erred in applying section 627.727(8) retroactively, and in limiting attorney fees to $40,000. In L. Ross Inc. v. R. W. Roberts Construction Co., 481 So. 2d 484 (Fla.1986), the supreme court held that the right to attorney fees is a substantive right, as is the burden on the party responsible for paying the fee. The court also ruled that a statutory amendment is also substantive where it affects a substanti…
Previewing 3 of 27 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Vill. OF EL Portal v. City OF Miami Shores, 362 So. 2d 275 (Fla. 1978)
- L. Ross, Inc. v. R.W. Roberts Constr. Co., Inc., 466 So. 2d 1096 (Fla. 5th DCA 1985)
- Am. Cast Iron Pipe Co. v. Foote Bros. Corp., 458 So. 2d 409 (Fla. 4th DCA 1984)