MIAMI CHILDREN'S HOSPITAL, PETITIONER,
v.
ULISES TAMAYO, ETC., ET AL., RESPONDENTS

Fla. | 1988-05-26
No. 71213
McDonald, C.J., and EHRLICH, SHAW, BARKETT, GRIMES and KOGAN, JJ., concur.
529 So. 2d 667 Florida Supreme Court (1988) Negative Treatment
Cited by 53 cases

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Holding

The court held that the lodestar principles set forth in Florida Patient’s Compensation Fund v. Rowe, including the limitation that a court-awarded fee not exceed the fee set by a contingency agreement, apply to attorney's fee awards under section 768.56, Florida Statutes, regardless of when the contingency agreement was entered into.


Headnotes

[1] When applying the lodestar principles for attorney's fees under section 768.56, Florida Statutes, all principles enunciated in Florida Patient's Compensation Fund v. …

[2] The limitation in Florida Patient's Compensation Fund v. …

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Facts & Procedural History

Respondents prevailed in a medical malpractice action and recovered a $5,000 judgment with a forty percent contingency fee agreement. The trial court …

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Opinion of the Court
OVERTON, Justice.

OVERTON, Justice.

This is a petition to review Tamayo v. Miami Children’s Hospital, 511 So. 2d 1091 (Fla. 3d DCA 1987), in which the Third District Court of Appeal certified that its decision passed on a question of great public importance. We rephrase the question as follows:

When addressing an attorney’s fee award under section 768.56, Florida Statutes (1985), may the lodestar principles set forth in Florida Patient’s Compensation Fund v. Rowe, 472 So. 2d 1145 (Fla.1985), be applied without the requirement contained in Rowe that an attorney’s fee not exceed the fee set by the contingency agreement if the agreement was entered into prior to our Rowe decision?

We have jurisdiction. Art. V, § 3(b)(4), Fla. Const. We answer the question in the negative and rule that if section 768.56, Florida Statutes (1983), applies, all of the principles enunciated in Rowe must apply.

The facts show that the respondents prevailed in a medical malpractice action and recovered a $5,000 judgment. They and their attorney had entered into a forty percent contingency fee contract.

The trial court, in awarding attorney’s fees pursuant to section 768.56, utilized the principles set forth in Rowe, but limited the award to the forty percent contingent fee payable under their contract.

The district court reversed, holding that the language in Rowe which restricted the attorney’s fee to no more than the amount contained in the agreement between the attorney and his client should not be applied in this instance because the attorney’s fee agreement was entered into prior to the effective date of Rowe and determining that that part of Rowe should not apply retroactively to restrict an attorney’s fee award. The court relied on its decisions in Tuerk v. Allstate Insurance Co., 498 So. 2d 504 (Fla. 3d DCA 1986), review denied, 506 So. 2d 1040 (Fla.1987), and Levy v. Levy, 483 So. 2d 455 (Fla.3d DCA), review denied, 492 So. 2d 1333 (Fla.1986), and remanded the cause to the trial court “with directions to enter an attorney’s fee award based on the standards established by Rowe, except that the court-awarded fee may exceed the fee set by the contingency fee agreement between the plaintiff and his counsel.” 511 So. 2d at 1092.

Section 768.56, Florida Statutes (1983), provides for the award of attorney’s fees in malpractice actions to the prevailing party. In upholding the statute’s constitutionality in Rowe, we adopted the federal lodestar approach as the “specific guidelines to aid trial judges in the setting of attorney’s fees” under this statute. 472 So. 2d at 1150. The factors to be considered in making the fee determination when the case involves a contingency fee were set forth as follows:

When the prevailing party’s counsel is employed on a contingent fee basis, the trial court must consider a contingency risk factor when awarding a statutorily-directed reasonable attorney fee.

However, because the party paying the fee has not participated in the fee arrangement between the prevailing party and that party’s attorney, the arrangement must not control the fee award: “Were the rule otherwise, courts would find themselves as instruments of enforcement, as against third parties, of excessive fee contracts.” Further, in no case should the court-awarded fee exceed the fee agreement reached by the attorney and his client. Based on our review of the decisions of other jurisdictions and commentaries on the subject, we conclude that in contingent fee cases, the lodestar figure calculated by the court is entitled to enhancement by an appropriate contingency risk multiplier in the range from 1.5 to 3. When the trial court determines that success was more likely than not at the outset, the multiplier should be 1.5; when the likelihood of success was approximately even at the outset, the multiplier should be 2; and, when success was unlikely at the time the case was initiated, the multiplier should be in the range of 2.5 and 3.

Id. at 1151 (citations omitted, emphasis added).

We reject respondents’ contention that Rowe constitutes a judicial change in the law that may not be applied retroactively because it impairs vested rights. Rowe does not impair any prior contractual rights in this instance because none ever existed between respondents and Miami Children’s Hospital. Whatever rights a prevailing party has to collect attorney fees exist solely because of section 768.56. The procedures we adopted in Rowe implement that statutory authorization. These procedures are no different than previous fee guidelines we have established in the Florida Code of Professional Responsibility and court cases. See, e.g., rule 4-1.5, Rules Regulating The Florida Bar (formerly Disciplinary Rule 2-106(B) of the Florida Code of Professional Responsibility); Rosenberg v. Levin, 409 So. 2d 1016 (Fla.1982).

We hold that all the factors contained in Rowe apply whenever the lodestar approach applies, and further find that no impairment of any contractual rights resulted from their use in the instant case. We emphasize that the factors to be utilized in computing a reasonable attorney’s fee, whether established by this Court through the Code of Professional Responsibility or by case law, are procedural in nature. The Tuerk case, relied on by the Third District Court of Appeal, is disapproved. On the other hand, Levy is a domestic relations case which is distinguishable by its nature and circumstances.

For the reasons expressed, we quash the decision of the District Court of Appeal and remand with directions to affirm the order of the trial court.

It is so ordered.

McDonald, C.J., and EHRLICH, SHAW, BARKETT, GRIMES and KOGAN, JJ., concur.


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Citator

Cited By (25 total)

  • Standard Guar. Ins. Co. v. Quanstrom, 555 So. 2d 828 (Fla. 1990)
    …1.5 to 3.” Id. The factors and caps ensured that the fee would not be significantly different in amount than it would be absent the statutory provision. See, e.g., Perez-Borroto v. Brea, 544 So. 2d 1022 (Fla.1989); Miami Children’s Hosp. v. Tamayo, 529 So. 2d 667 (Fla.1988). There clearly was no intent on the part of the legislature to increase the amount of attorney’s fees in this type of action for the prevailing party’s counsel. Subsequent to our Rowe decision, the United States Supreme Court, in Pennsyl…
  • Lane v. Head, 566 So. 2d 508 (Fla. 1990)
    …x attorney’s fees that exceed the actual fee agreement between the plaintiff and plaintiffs counsel. Rowe, 472 So. 2d at 1151. This principle applies even though the present fee arrangement was made pri- or to Rowe. Miami Children’s Hosp. v. Tamayo, 529 So. 2d 667, 668 (Fla.1988). Thus, in this instance the fee award was subject to a cap equal to the maximum amount Lane would have had to pay if section 607.147(5), Florida Statutes, had not existed. Under Lane’s fee agreement, this cap was twenty-five percent…
    1 / 2
  • Orlando Reg'l Med. Ctr., Inc. v. Boleslaus J. Chmielewski, 573 So. 2d 876 (Fla. 5th DCA 1990)
    …hat under Rowe and Quanstrom, in this medical malpractice case cross-appellants are limited to recovering 45 percent of their gross award. World Service Life Insurance Co. v. Bodiford, 537 So. 2d 1381 (Fla.1989); Miami Children’s Hospital v. Tamayo, 529 So. 2d 667 (Fla.1988); North Shore Medical Center, Inc. v. Kennedy, 554 So. 2d 8 (Fla. 3d DCA 1989), rev. denied, 563 So. 2d 632 (Fla.1990). See also Perez-Borroto v. Brea, 544 So. 2d 1022 (Fla.1989) (noncontingency contract). Cases involving recovery of a rea…

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