H. J. BRETT, APPELLANT,
v.
THE FIRST NATIONAL BANK OF MARIANNA, A CORPORATIAON, APPELLEE
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This case addresses whether a mortgagee can recover attorney's fees in a foreclosure suit. The court held that the mortgagee must prove they have paid or are obligated to pay their attorney a reasonable fee, not just present an opinion on what a reasonable fee would be.
No, the lower court erred. The complainant failed to establish a right to recover solicitors' fees because they did not allege or prove that they had paid or obligated themselves to pay their solicitors a specific, reasonable fee for their services.
“The complainant has not, in our opinion, established a right to the recovery of solicitors’ fees.”
Establishes the core reason for reversing the award of attorney's fees.
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Join FLexlaw to unlock all legal intelligenceThe mortgagee sought to foreclose on a mortgage and requested attorney's fees based on a stipulation in the mortgage deed. The lower court awarded $50…
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Giblin, Circuit Judge.
The sole question presented by this appeal, which is from a final decree in a suit for the foreclosure of a real estate mortgage lien, is whether the chancellor below erred in decreeing that the complainant (appellee) should recover from the defendant (appellant) the sum of $500 as solicitors’ fees for the services of the complainant’s solicitors in the suit, the chancellor having determine such sum to be reasonable.
The involved mortgage deed contained a stipulation under which reasonable solicitors’ fees were recoverable.
In view of the conclusion we have reached, we are not called upon to decide whether the sum allowed as solicitors’ fees by the chancellor was reasonable or excessive. Had the complainant, by proper allegations and proof, shown itself to be entitled to the recovery of reasonable solicitors’ fees the question of whether the allowed sum is reasonable or ex cessive would be the subject of our consideration. The complainant has not, in our opinion, established a right to the recovery of solicitors’ fees.
In foreclosure proceedings in our State the fees allowed the mortgagee for the services of his solicitor in the proceedings is intended as an indemnity to-the mortgagee for expenditures necessarily made, or incurred to protect his interest. United States Savings Bank v. Pittman, 80 Fla. 423, 86 So. R. 567.
The proper inquiry in cases of such character is, therefore, what has the mortgagee paid, or become liable to pay, to his solicitor for the.services of the latter, and is it the usual and customary fee paid for such services? Jevne v. Osgood, 57 Ill. 340.
The object and intent of the contractal stipulation for solicitor’s fees is that the mortgagee should be at no expense in procuring the services of his solicitor; but it is not designed that the mortgagee should recover from the mortgagor for solicitor’s fees a sum in excess of the amount which the former has paid, or obligated himself to pay, to his solicitor. White v. Lucas, 46 Iowa 319.
It is incumbent upon the mortgagee, who seeks in foreclosure proceedings to recover solicitor’s fees from the mortgagor, to allege and prove that he has paid; or obligated himself to pay, his solicitor reasonable fees for the latter’s services in the proceedings. This requirement was not met by the complainant herein. There was, it is true, an allegation in its bill that “the said note and mortgage were placed in the hands of” its solicitors “for collection and foreclosure; and there was adduced the testimony of two disinterested practicing solicitors who testified that in their opinion a reasonable fee to be allowed the complainant for the services of its solicitors would be “$15 plus ten per cent of the amount due upon foreclosure” (an amount in excess of the sum allowed by the chancellor.) Such allegation and proof, however, in cases where the sufficiency of the allegation is raised by demurrer or other proper pleading; or the proof is objected to on the hearing, are not proper and sufficient upon which to base the decree for solicitors’ fees. There was no allegation and no proof that the complainant had paid, or obligated itself to pay, to its solicitors for their services, any fixed or determinable sum.
An illustration may serve to demonstrate the soundness of the adopted rule. Let us suppose that a mortgagee, desiring to foreclose his Ren, engages a solicitor to prosecute the foreclosure proceedings, agreeing to pay the. solicitor for his services a fee of $100. In his bill the mortgagee merely alleges that he has “placed the mortgage in the hands of his solicitor for foreclosure”; and on the trial of the cause he produces as witnesses solicitors who testify that in their opinion $500 is a reasonable sum to allow the mortgagee for solicitor’s fees. Should the court allow the mortgagee the sum of $500 for solicitor’s fees, it would enable him to recover from a solvent mortgagor over whom the court has jurisdiction the sum of $400.00 in excess of the amount to which the mortgagee is justly entitled. Equity cannot tolerate such a result.
It cannot be logically argued that the defendant herein should have the burden of proving that the complainant has not paid, or obligated itself to pay, to its solicitors as fees for their services the sum allowed by the chancellor below. The burden is upon him who seeks to recover damages to prove that he is entitled to such recovery and to establish the basis for the computation or determination of the amount.
For the reasons we have stated, the decree appealed from is reversed insofar as it decrees the recovery by the com plainant (appellee) from the defendant (appellant) of solicitors’ fees.
The decree is otherwise affirmed.
The cause is remanded for appropriate proceedings.
Whitfield, P. J., and Buford, J., concur. Terrell, C. J., and Ellis and Brown, J. J., concur in the opinion and judgment.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (25 total)
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Mallard v. Ewing, 121 Fla. 654 (Fla. 1935)…om his client by an action at law whether the promissor or mortgagor is insolvent or not and the security is not sufficient to pay the judgment or decree which may be obtained. The rule announced in the case of Brett v. First Nat. Bank of Marianna, 97 Fla. 284, 120 South. Rep. 554, is construed to mean that the recovery of solicitors’ fees by the mortgagee may in no case exceed the sum he has actually paid to his solicitor or by agreement express or implied obligated himself to his solicitor to pay for th…1 / 2
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Brite v. Orange Belt Sec. Co., 133 Fla. 266 (Fla. 1938)…ot specially prayed for and where there are no allegations in the bill nor proof offered to establish that the plaintiff has paid or obligated itself to pay, to its solicitors, any fixed or determinable sum. See Brett v. First Nat. Bank of Marianna, 97 Fla. 284, 120 So. 554. It does not appear that the appellants have waived their right, by this stipulation, to object to the allowance of these fees. The fourth assignment of error was: “4. That the Court erred in making and entering its Final Decree of Ju…
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Jaudon v. Equitable Life Assurance Soc'y of the United States, 102 Fla. 782 (Fla. 1931)…t will be noted that the above principle of law has reference to testimony as to the “reasonableness” of fee and not as to “agreement” to pay a reasonable fee. Appellant contends that under the decision of Brett v. First National Bank, 97 Fla. 284, 120 So. 554, the above allegations and proof in the instant case are not sufficient upon which to base any finding as to solicitor’s fees. In that case, the only allegation in the bill referring to attorney’s fees was that “the said note and mortgage were plac…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- United States Sav. Bank v. Pittman, 80 Fla. 423 (Fla. 1920)