NORRIS & ASSOCIATES OF NAPLES, INC., A FLORIDA CORPORATION, APPELLANT,
v.
JAMES W. ELKINS, APPELLEE
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This case involves a real estate broker suing an attorney for negligence and breach of fiduciary duty regarding the disbursement of a commission. The appellate court affirmed the summary judgment in favor of the attorney, finding no duty owed to the broker, but reversed the award of attorney's fees to the attorney.
1. No, the attorney for the seller did not owe a duty of care to the procuring broker because the broker was not a client, a party to an escrow agreement, or an intended third-party beneficiary of the sale contract. 2. No, the attorney was not entitled to attorney's fees under the relevant statute and rule when the judgment was not rendered in favor of the plaintiff.
[1] An attorney owes a duty of care only to those persons with whom the attorney is in privity or who are intended third-party beneficiaries.
[2] An attorney representing a seller in a real estate transaction does not owe a duty of care to a broker who is not the attorney's client and not a party to an escrow agree…
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Join FLexlaw to unlock all legal intelligence“An attorney has a duty of care to those persons with whom the attorney is in privity or who are intended third-party beneficiaries.”
Establishes the general rule for an attorney's duty of care.
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Join FLexlaw to unlock all legal intelligenceNorris & Associates, a broker, sued attorney Elkins for negligence and breach of fiduciary duty after Elkins disbursed a real estate commission to Pla…
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PATTERSON, Judge.
This case arose from a dispute over a broker’s commission on a real estate sale. Norris & Associates of Naples, Inc. (Norris), plaintiff below, appeals a final summary judgment and a final judgment for attorney’s fees and costs in an action against attorney James Elkins (Elkins), defendant below, for negligence and breach of fiduciary duty in the disbursement of a real estate commission. We affirm the summary judgment which finds no liability, but reverse the award of attorney’s fees.
The real estate contract disclosed Norris as the procuring broker and Platinum Coast Realty (Platinum) as the listing broker and provided that the seller was obligated to pay the commission. Norris contends that Platinum informed it that Norris would receive a two and one-half percent commission of $58,750.00
Prior to the closing on March 31, 1989, Elkins, who represented the seller, prepared a preliminary closing statement listing a $58,750.00 commission for Norris and nothing for Platinum. The buyer’s attorney sent a lump-sum check to Elkins, but neither the buyer, the seller, nor the brokers signed the preliminary closing statement before closing.
The seller first reviewed the preliminary statement on the day of closing and indicated that there was an error in the seller’s expense portion with regard to the division of the brokerage commission between Norris and Platinum. The seller instructed Elkins to correct the error by making the full commission payable to Platinum as required by his brokerage contract with Platinum, the listing broker. It was understood that Platinum, as was customary, would then settle the amount owed to Norris. Elkins made the correction and disbursed the funds according to his client’s instructions. On the day of closing, Elkins mailed the final closing statement, which showed the disbursement to Platinum, to the buyer’s attorney.
Several days later, Platinum delivered a check for $29,375.00 to Norris for payment of a one and one-fourth percent commission. Norris returned the check to Platinum and stated that the agreement called for a two and one-half percent commission on the sale.
Norris sued Elkins, the seller, and Platinum and alleged that Elkins breached his fiduciary duty to Norris and that Elkins was negligent in his handling of the real estate transaction.
Elkins filed a $100.00 offer of judgment and settlement under sections 45.061 and 768.79, Florida Statutes (1989), and Florida Rule of Civil Procedure 1.442. Norris did not accept the offer. After hearing on cross-motions for summary judgment, the trial court entered a summary final judgment for Elkins on the issue of liability. In separate proceedings, the trial court awarded Elkins attorney’s fees of $4,220.50, but did not specify the basis for the award. This appeal followed.
The trial court correctly entered summary judgment in favor of Elkins. Norris was not one of Elkins’s clients, it was not a party to an escrow agreement with Elkins, and it was not an intended third-party beneficiary of the sale contract. An attorney has a duty of care to those persons with whom the attorney is in privity or who are intended third-party beneficiaries. Angel, Cohen and Rogovin v. Oberon Inv., N. V., 512 So. 2d 192 (Fla.1987). No liability exists because Elkins did not owe a duty of care to Norris.
The award of attorney’s fees in favor of Elkins, however, must be reversed. This court has reversed awards of attorney’s fees made under sections 45.061 and 768.79, Florida Statutes (1989), and Florida Rule of Civil Procedure 1.442, when the judgment was not rendered in favor of the plaintiff.1 See Luizza v. Yaeger, 571 So. 2d 600 (Fla. 2d DCA 1990) (section 768.79 and rule 1.442); Gunn v. DePaoli, 562 So. 2d 427 (Fla. 2d DCA 1990) (section 768.79); Coe v. B & D Transp. Services, Inc., 561 So. 2d 469 (Fla. 2d DCA 1990) (section 45.-061); Kline v. Publix Supermarkets, Inc., 568 So. 2d 929 (Fla. 2d DCA 1990) (section 768.79 and rule 1.442).
We remand this cause for the trial court to vacate the fee award and enter an award for costs pursuant to section 57.041, Florida Statutes (1989).
Affirmed in part and reversed in part.
LEHAN, A.C.J., and HALL, J., concur. . Chapter 90-119, Laws of Florida, has substantially rewritten section 768.79, effective October 1, 1990, and now provides for the recovery of costs and fees when the plaintiff fails to accept an offer of judgment and the trial court enters a judgment of no liability. Rule 1.442 has also been rewritten but does not affect the result here. See Kline v. Publix Supermarkets, Inc., 568 So. 2d 929, 930 (Fla. 2d DCA 1990); The Florida Bar Re: Amendment to the Rules of Civil Procedure, Rule 1.442 (Offer of Judgment), 550 So. 2d 442 (Fla.1989).
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Citator
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Timmons v. Combs, 608 So. 2d 1 (Fla. 1992)…econd District Court of Appeal has also denied the recovery of costs and attorney’s fees by the defendant under section 45.061 because a judgment was entered for the defendant rather than the plaintiff. Norris & Associates of Naples, Inc. v. Elkins, 570 So. 2d 1386 (Fla. 2d DCA 1990); Coe v. B & D Transp. Services, Inc., 561 So. 2d 469 (Fla. 2d DCA 1990). On the other hand, the Third District Court of Appeal in Memorial Sales, Inc., 579 So. 2d 778, and the Fourth District Court of Appeal in Gross, 591 So. 2d 3…
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Timmons v. Combs, 579 So. 2d 840 (Fla. 1st DCA 1991)…e/plaintiff s unreasonable failure to accept an offer of settlement. Upon consideration of the briefs and arguments of the parties, we concur with the decisions of the Second District Court of Appeal in Norris & Associates of Ñaples, Inc. v. Elkins, 570 So. 2d 1386 (Fla. 2d DCA 1990), and Coe v. B & D Transp. Services, Inc., 561 So. 2d 469 (Fla. 2d DCA 1990), which hold that a defendant may not recover under section 45.061 where no judgment was rendered in favor of the plaintiff.1 AFFIRMED. SMITH, WIGGINT…
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Sharp Cmty. Ambulance Serv., Inc. v. Ulyssee Sharp, Jr., 582 So. 2d 778 (Fla. 1st DCA 1991)…579 So. 2d 840 (Fla. 1st DCA 1991), this court held that the statutory language requires a judgment in favor of the plaintiff, and does not authorize an award upon a judgment for the defendant. Accord, Norris & Associates of Naples, Inc. v. Elkins, 570 So. 2d 1386 (Fla. 2d DCA 1990); Coe v. B & D Transportation Services, Inc., 561 So. 2d 469 (Fla. 2d DCA 1990); contra, Memorial Sales, Inc. v. Pike, 579 So. 2d 778 (Fla. 3d DCA 1991). And the applicable version of rule 1.442, as effective when the offer of judg…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Angel v. Oberon Inv., N.V., 512 So. 2d 192 (Fla. 1987)
- The Fla. Bar re: Amendment to Rules of Civil Procedure, 550 So. 2d 442 (Fla. 1989)
- Kline v. Publix Supermarkets, Inc., 568 So. 2d 929 (Fla. 2d DCA 1990)
- Gillette v. State, 571 So. 2d 600 (Fla. 2d DCA 1990)
- Gunn v. Enso DePAOLI, 562 So. 2d 427 (Fla. 2d DCA 1990)
- Wallen v. Jerome Isaac, M.D., 561 So. 2d 469 (Fla. 2d DCA 1990)
- COE v. B & D Transp. Servs., Inc., 561 So. 2d 469 (Fla. 2d DCA 1990)