Senate Bill 0944

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    Florida Senate - 1999                                   SB 944

    By Senator Campbell





    33-775A-99

  1                      A bill to be entitled

  2         An act relating to civil actions; amending s.

  3         57.105, F.S.; revising conditions for award of

  4         attorney's fees for presenting unsupported

  5         claims or defenses; authorizing damage awards

  6         against a party for unreasonable delay of

  7         litigation; authorizing the court to impose

  8         additional sanctions; amending s. 768.79, F.S.;

  9         providing that before awarding costs and fees

10         the court must determine whether the offer was

11         reasonable under the circumstances known at the

12         time the offer was made; providing an effective

13         date.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Section 57.105, Florida Statutes, is

18  amended to read:

19         57.105  Attorney's fee; sanctions for raising unfounded

20  claims or defenses; damages for delay of litigation.--

21         (1)  Upon the court's initiative or motion of any

22  party, the court shall award a reasonable attorney's fee to be

23  paid to the prevailing party in equal amounts by the losing

24  party and the losing party's attorney on any claim or defense

25  at any time during a in any civil proceeding or action in

26  which the court finds that the losing party or the losing

27  party's attorney knew or should have known that a claim or

28  defense when initially presented to the court or at any time

29  before the trial:

30         (a)  Was not supported by the material facts necessary

31  to establish the claim or defense; or

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    Florida Senate - 1999                                   SB 944
    33-775A-99




  1         (b)  Would not be supported by the application of

  2  then-existing law to those material facts. there was a

  3  complete absence of a justiciable issue of either law or fact

  4  raised by the complaint or defense of the losing party;

  5  provided, However, that the losing party's attorney is not

  6  personally responsible if he or she has acted in good faith,

  7  based on the representations of his or her client as to the

  8  existence of those material facts.  If the court awards

  9  attorney's fees to a claimant under this subsection finds that

10  there was a complete absence of a justiciable issue of either

11  law or fact raised by the defense, the court shall also award

12  prejudgment interest.

13         (2)  Subsection (1) does not apply if the court finds

14  that the claim or defense was initially presented to the court

15  as a good-faith attempt, having a reasonable probability of

16  success, to change then-existing law as it applied to the

17  material facts.

18         (3)  At any time in a civil proceeding or action in

19  which the moving party proves by a preponderance of the

20  evidence that any action taken by the opposing party,

21  including, but not limited to, the filing of any pleading or

22  part thereof, the assertion of or response to any discovery

23  demand, the assertion of any claim or defense, or the response

24  to any request by any other party, was taken primarily for the

25  purpose of unreasonable delay, the court shall award damages

26  to the moving party for the time necessitated by the conduct

27  in question.

28         (4)  The court also may impose additional sanctions or

29  other remedies that are just and warranted under the

30  circumstances of the particular case, including, but not

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    Florida Senate - 1999                                   SB 944
    33-775A-99




  1  limited to, contempt of court, award of taxable costs,

  2  striking of a claim or defense, or dismissal of the pleading.

  3         (5)(2)  If a contract contains a provision allowing

  4  attorney's fees to a party when he or she is required to take

  5  any action to enforce the contract, the court may also allow

  6  reasonable attorney's fees to the other party when that party

  7  prevails in any action, whether as plaintiff or defendant,

  8  with respect to the contract.  This subsection applies to any

  9  contract entered into on or after act shall take effect

10  October 1, 1988, and shall apply to contracts entered into on

11  said date or thereafter.

12         Section 2.  Subsection (7) of section 768.79, Florida

13  Statutes, is amended to read:

14         768.79  Offer of judgment and demand for judgment.--

15         (7)(a)  If a party is entitled to costs and fees

16  pursuant to the provisions of this section, the court may, in

17  its discretion, determine that an offer was not made in good

18  faith.  In such case, the court may disallow an award of costs

19  and attorney's fees.

20         (b)  When determining the entitlement to and

21  reasonableness of an award of attorney's fees pursuant to this

22  section, the court shall consider, along with all other

23  relevant criteria, the following additional factors:

24         1.  The then apparent merit or lack of merit in the

25  claim.

26         2.  The number and nature of offers made by the

27  parties.

28         3.  The closeness of questions of fact and law at

29  issue.

30         4.  Whether the proposal was reasonably rejected.

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    Florida Senate - 1999                                   SB 944
    33-775A-99




  1         5.4.  Whether the person making the offer had

  2  unreasonably refused to furnish information necessary to

  3  evaluate the reasonableness of such offer.

  4         6.5.  Whether the suit was in the nature of a test case

  5  presenting questions of far-reaching importance affecting

  6  nonparties.

  7         7.6.  The amount of the additional delay cost and

  8  expense that the person making the offer reasonably would be

  9  expected to incur if the litigation should be prolonged.

10         Section 3.  This act shall take effect October 1, 1999.

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13                          SENATE SUMMARY

14    Revises conditions for the award of attorney's fees when
      unsupported claims or defenses are presented. Authorizes
15    damages for unreasonable delay of litigation. Requires
      the court to determine whether a proposal was reasonably
16    rejected when awarding costs and fees.

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