JAIME CACHO A/K/A JAIME R. CACHO, ET AL., APPELLANTS,
v.
THE BANK OF NEW YORK MELLON, APPELLEE

Fla. 3d DCA | 2013-09-25
No. 3D12-3373
Before WELLS and LOGUE, JJ., and SCHWARTZ, Senior Judge.
124 So. 3d 943 Florida District Court of Appeal, Third District (2013) Positive Treatment
Cited by 5 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

An attorney who withdrew from representing a mortgage foreclosure defendant sought attorney's fees from the opposing bank after the case was dismissed in the defendant's favor. The court held that the attorney lacked standing to pursue fees independently, as he was no longer counsel of record and failed to timely assert a charging lien.


Holding

The court held that Ruiz had no standing to seek attorney's fees from the Bank. Although Cacho was entitled to pursue fees as a prevailing party under the mortgage and Section 57.105(7), Ruiz's entitlement to fees derived solely from his contract with Cacho, not from any agreement with the Bank. Ruiz lacked authority to seek relief on Cacho's behalf after withdrawing as counsel and failed to timely assert a charging lien before the case's dismissal.


Headnotes

[1] An attorney who has withdrawn from a case lacks authority to seek relief on behalf of a former client.

[2] A discharged or withdrawing attorney must take affirmative steps to retain their position regarding a client's recovery to enforce a claim for fees.

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Key Quotes

“Ruiz's entitlement to fees stems from his agreement, whether express or implied, with Cacho pursuant to which Cacho agreed to pay Ruiz for his services. Cacho's entitlement in turn to secure payment of those fees by the Bank stems from the express terms of a mortgage agreement between Cacho and the Bank pursuant to which the Bank became obligated to pay Cacho in the event he prevailed in any enforcement litigtion. Ruiz cites to no agreement between either Cacho and the Bank, himself and the Bank, or himself and Cacho which would authorize him independently of Cacho to seek payment of Cacho's attorney's fees or which would obligate the Bank to pay him directly for services he rendered to Cacho.”

Establishes the critical distinction between Cacho's contractual right to fees from the Bank versus Ruiz's right to fees only from his client.

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Facts & Procedural History

The Bank of New York Mellon filed a mortgage foreclosure action against Jaime Cacho in October 2009. Cacho was represented by attorney John Ruiz, who …

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Opinion of the Court
WELLS, Judge.

WELLS, Judge.

The Law Offices of La Ley con John H. Ruiz, P.A. appeals from an order denying its motion to assess attorney’s fees against The Bank of New York Mellon in this now dismissed mortgage foreclosure case. Because no legal basis exists to support an award of fees in this matter in favor of Ruiz against the Bank, we affirm.

This action commenced in October of 2009 when the Bank sought to foreclose a loan secured by a mortgage executed by Jaime Cacho. Cacho initially was represented by John Ruiz (and his firm) who filed an answer and affirmative defenses on Cacho’s behalf. In that answer, Cacho sought an award of attorneys fees should he prevail in the matter:

Pursuant to Paragraph 24 of the Mortgage, the Plaintiff shall be entitled to expenses including attorney’s fees in pursuing the remedies provided in Paragraph 22 of the Mortgage. Since the Plaintiff is pursuing attorney’s fees pursuant to the Mortgage’s Paragraph 24, then pursuant to Section 57.105(7), the Defendant is entitled to attorney’s fees if he/she/they prevails(s) in this action.

Following an initial flurry of discovery by Ruiz on Cacho’s behalf, Ruiz sought leave to withdraw as Cacho’s counsel of record and was permitted to withdraw on March 81, 2011.1 Cacho thereafter was unrepresented.

On December 29, 2011, after the Bank failed to appear for trial, the action was dismissed in an order that makes no mention of attorney’s fees. On January 19, 2012, Ruiz, claiming to be acting on behalf of Cacho, moved for an award of attorney’s *945fees from the Bank for services rendered before Ruiz withdrew:

COMES NOW, the Defendant, JAIME CACHO, by and through his undersigned counsel and hereby files this Motion For Attorney’s Fees against Plaintiff, THE BANK OF NEW YORK MELLON ....

On November 20, 2012, ten months after this motion was filed, Ruiz filed a notice of attorney’s charging lien to recover for services rendered to Cacho “pursuant to a written, express contract between the aforementioned JAIME CACHO and the undersigned attorney.” On November 21, 2012, “Defendant’s Motion for Entitlement to Attorneys Fees and Costs” was denied.

Ruiz appeals that order claiming that he was entitled to seek and to secure a fee award from the Bank because (1) the mortgage and note executed by Cacho in favor of the Bank provides for an award of fees to the Bank should it prevail in an action to enforce the note and mortgage; (2) under section 57.105(7) of the Florida Statutes, Cacho would be entitled to a fee award should he prevail in any such enforcement action; (8) pursuant to this authority, in the foreclosure action, Cacho had requested a fee award in the event he prevailed; and (4) Cacho had prevailed.

While all of this: entitled Cacho to pursue and to secure a fee award against the bank, see, e.g., Valcarcel v. Chase Bank USA NA, 54 So.3d 989 (Fla. 4th DCA 2010) (holding mortgagors in dismissed foreclosure action entitled to fee award as prevailing parties under section 57.105(7)); § 57.105(7), Fla. Stat. (2012) (making contractual fee provisions reciprocal), none of it entitled Ruiz to pursue or to secure a fee award against the Bank in this action.

Ruiz’s entitlement to fees stems from his agreement, whether express or implied, with Cacho pursuant to which Cacho agreed to pay Ruiz for his services. Ca-cho’s entitlement in turn to secure payment of those fees by the Bank stems from the express terms of a mortgage agreement between Cacho and the Bank pursuant to which the Bank became obligated to pay Cacho in the event he prevailed in any enforcement litigtion. Ruiz cites to no agreement between either Cacho and the Bank, himself and the Bank, or himself and Cacho which would authorize him independently of Cacho to seek payment of Cacho’s attorney’s fees or which would obligate the Bank to pay him directly for services he rendered to Cacho.

As Ruiz concedes in his initial and reply briefs, by the time this action was dismissed and the motion for fees filed, Ruiz no longer represented Cacho.2 Ruiz was, *946therefore, without authority to seek any relief on Cacho’s behalf. See Fla. R. Jud. Admin. Rule 2.505(f) (2012) (providing that the appearance of an attorney for a party “shall terminate” upon a court order authorizing withdrawal); Fla. R. Jud. Admin. 2.505(e) (2012) (stating that an attorney may appear in a proceeding in one of three ways: (1) by serving and filing, on behalf of a party, “the party’s first pleading or paper in the proceeding”; (2) by substitution of counsel, “but only by order of court and with written consent of the client, filed with the court”; and (3) by filing with the court and serving on all parties a “notice of appearance as counsel for a party”) (emphasis added); see Pasco County v. Quail Hollow Props., Inc., 693 So.2d 82, 83 (Fla. 2 DCA 1997) (confirming that the rationale behind the appearance of counsel rule is to assure courts that they may, rely on the representations of the attorneys who file pleadings before them; to protect clients who may be bound by such representations;' and to ensure the rights of other parties to know with whom they are dealing); see also Thomas v. State, 884 So.2d 309, 311 (Fla. 2d DCA 2004) (striking as nullities motions filed by an additional attorney who had not filed an appearance in the case).3 Moreover, because Ruiz failed to timely seek a charging lien4, he lost any opportunity in this case to seek relief on his own behalf. As this court said in Litman v. Fine, Jacobson, Schwartz, Nash, Block & England, P.A., 517 So.2d 88, 93 n. 6, n. 7 (Fla. 3d DCA 1987):

It may be that this notice [of a timely claim of lien] is critical to a discharged or- withdrawing attorney, who is, perforce, no 'longer a part of the litigation *947and must take affirmative steps to retain his position vis-a-vis the client and the outcome; notice in such a case both alerts a successor attorney to a potential reduction of his own fee and “reminds” a client that discharge or withdrawal of an attorney does not reheve the client of his obligation to that attorney.
However, if an attorney has not claimed a charging lien or there are no proceeds to which a lien can attach, he nonetheless retains the right to sue the client on the contract in an action at law in which the client is entitled to a jury trial. However, mere withdrawal or discharge of the attorney before litigation is ended does not deprive him of his right to enforce a claim of lien asserted before the close of the litigation.

(Citations omitted).

In sum, the fact that Ruiz was not Ca-cho’s attorney at the time of the dismissal or any time thereafter and that Ruiz failed to timely assert a charging lien, leaves Ruiz where he always has been. He agreed to represent Cacho in a mortgage foreclosure action, a defensive battle in which no damage award was realistically contemplated. Cacho apparently agreed to pay Ruiz for that representation. The foreclosure action was dismissed entitling Cacho to seek recovery of his fees from the Bank, a right which he did not pursue. Because Ruiz failed to timely seek a charging lien which arguably might have provided him with an avenue to seek a fee award directly from the Bank, he remains exactly where he started: holding Cacho’s contractual obligation to pay his fees.

Accordingly, the order on appeal is affirmed.

LOGUE, J., concurs.

SCHWARTZ, Senior Judge,

(specially concurring).

I agree to affirmance on the ground that there is no basis for granting standing to any attorney, let alone one who has withdrawn, to directly seek attorney’s fees from an adverse party who may or may not be liable for those fees to his client.

Concurrence
SCHWARTZ, Senior Judge,

SCHWARTZ, Senior Judge,

(specially concurring).

I agree to affirmance on the ground that there is no basis for granting standing to any attorney, let alone one who has withdrawn, to directly seek attorney’s fees from an adverse party who may or may not be liable for those fees to his client.


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Citator

Cited By

  • Fla. Cmty. Bank, N.A. v. RED Rd. Residential, LLC, 197 So. 3d 1112 (Fla. 3d DCA 2016)
    …her party to the mortgage — i.e., the mortgagor — a substantive right to the recovery of its fees in any action where, by virtue of the fee provision in the mortgage, the mortgagee would be entitled to fees.. See, e.g., Cacho v. Bank of N.Y. Mellon, 124 So. 3d 943, 945 (Fla. 3d DCA 2013). In other words, notwithstanding that the contractual fee provision is one-sided, entitling only one of the contract’s parties to prevailing party fees, by operation of law section 57.105(7) bestows on the other party to the…
  • LEE Cnty. v. Dean Wish, LLC, 326 So. 3d 840 (Fla. 6th DCA 2023)
    …tch, 107 So. 3d 362, 370 (Fla. 2013) (“We conclude that Diamond Aircraft is entitled to fees but only for the period of litigation until the federal district court held that FDUTPA did not apply to Horowitch's claim.”); Cacho v. Bank of N.Y. Mellon, 124 So. 3d 943, 945-46 (Fla. 3d DCA 2013) (“As Ruiz concedes in his initial and reply briefs, by the time this action was dismissed and the motion for fees filed, Ruiz no longer represented Cacho. Ruiz was, therefore, without authority to seek any relief on Cacho'…
  • …e receiver’s dis [*802] charge. The trial court granted the motion. This appeal followed. The receiver’s attorney lacked standing to pursue an award of attorney’s fees and costs independent of the receiver. See Cacho v. The Bank of New York Mellon, 124 So. 3d 943, 945 (Fla. 3d DCA Sept. 25, 2013) (holding that an attorney who withdrew as counsel of record and failed to timely seek a charging lien lacked standing to pursue attorney’s fees on his behalf in a foreclosure suit); see also Fickle v. Adkins, 385 So…

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