Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. SB 1726
                        Barcode 545448
                            CHAMBER ACTION
              Senate                               House
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       03/20/2007 02:24 PM         .                    
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11  The Committee on Commerce (Oelrich) recommended the following
12  amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Section 57.105, Florida Statutes, is
19  reenacted and amended to read:
20         57.105  Attorney's fee; sanctions for raising
21  unsupported claims or defenses; service of motions; damages
22  for delay of litigation.--
23         (1)  Upon the court's initiative or motion of any
24  party, the court shall award a reasonable attorney's fee to be
25  paid to the prevailing party in equal amounts by the losing
26  party and the losing party's attorney on any claim or defense
27  at any time during a civil proceeding or action in which the
28  court finds that the losing party or the losing party's
29  attorney knew or should have known that a claim or defense
30  when initially presented to the court or at any time before
31  trial:
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Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 (a) Was not supported by the material facts necessary 2 to establish the claim or defense; or 3 (b) Would not be supported by the application of 4 then-existing law to those material facts. 5 6 However, the losing party's attorney is not personally 7 responsible if he or she has acted in good faith, based on the 8 representations of his or her client as to the existence of 9 those material facts. If the court awards attorney's fees to a 10 claimant pursuant to this subsection, the court shall also 11 award prejudgment interest. 12 (2) Paragraph (1)(b) does not apply if the court 13 determines that the claim or defense was initially presented 14 to the court as a good faith argument for the extension, 15 modification, or reversal of existing law or the establishment 16 of new law, as it applied to the material facts, with a 17 reasonable expectation of success. 18 (3) At any time in any 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 its reasonable expenses incurred in 27 obtaining the order, which may include attorney's fees, and 28 other loss resulting from the improper delay. 29 (4) A party is entitled to an award of sanctions under 30 this section only if a motion is by a party seeking sanctions 31 under this section must be served by a party seeking sanctions 2 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 under this section. Such motion shall but may not be filed 2 with or presented to the court unless, within 21 days after 3 service of the motion, the challenged paper, claim, defense, 4 contention, allegation, or denial is not withdrawn or 5 appropriately corrected. Any motion filed with the court which 6 does not comply with this subsection is null and void. This 7 subsection is substantive and shall not be waived except in 8 writing. This subsection does not apply to sanctions ordered 9 upon the court's initiative. 10 (5) In administrative proceedings under chapter 120, 11 an administrative law judge shall award a reasonable 12 attorney's fee and damages to be paid to the prevailing party 13 in equal amounts by the losing party and a losing party's 14 attorney or qualified representative in the same manner and 15 upon the same basis as provided in subsections (1)-(4). Such 16 award shall be a final order subject to judicial review 17 pursuant to s. 120.68. If the losing party is an agency as 18 defined in s. 120.52(1), the award to the prevailing party 19 shall be against and paid by the agency. A voluntary dismissal 20 by a nonprevailing party does not divest the administrative 21 law judge of jurisdiction to make the award described in this 22 subsection. 23 (6) The provisions of this section are supplemental to 24 other sanctions or remedies available under law or under court 25 rules. 26 (7) If a contract contains a provision allowing 27 attorney's fees to a party when he or she is required to take 28 any action to enforce the contract, the court may also allow 29 reasonable attorney's fees to the other party when that party 30 prevails in any action, whether as plaintiff or defendant, 31 with respect to the contract. This subsection applies to any 3 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 contract entered into on or after October 1, 1988. 2 (8) The provisions of this section create substantive 3 rights to the award of attorney's fees, and any procedural 4 provisions are directly related to the definition of those 5 rights. Any procedural aspects of this provision are intended 6 to implement the substantive provisions of the law. 7 Section 2. Section 768.79, Florida Statutes, is 8 reenacted and amended to read: 9 768.79 Offer of judgment and demand for judgment.-- 10 (1) In any civil action for damages filed in the 11 courts of this state, if a defendant files an offer of 12 judgment which is not accepted by the plaintiff within 30 13 days, the defendant shall be entitled to recover reasonable 14 costs and attorney's fees incurred by her or him or on the 15 defendant's behalf pursuant to a policy of liability insurance 16 or other contract from the date of filing of the offer if the 17 judgment is one of no liability or the judgment obtained by 18 the plaintiff is at least 25 percent less than such offer, and 19 the court shall set off such costs and attorney's fees against 20 the award. Where such costs and attorney's fees total more 21 than the judgment, the court shall enter judgment for the 22 defendant against the plaintiff for the amount of the costs 23 and fees, less the amount of the plaintiff's award. If a 24 plaintiff files a demand for judgment which is not accepted by 25 the defendant within 30 days and the plaintiff recovers a 26 judgment in an amount at least 25 percent greater than the 27 offer, she or he shall be entitled to recover reasonable costs 28 and attorney's fees incurred from the date of the filing of 29 the demand. If rejected, neither an offer nor demand is 30 admissible in subsequent litigation, except for pursuing the 31 penalties of this section. 4 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 (2) The making of an offer of settlement which is not 2 accepted does not preclude the making of a subsequent offer. 3 An offer must: 4 (a) Be in writing and state that it is being made 5 pursuant to this section. 6 (b) Name the party making it and the party to whom it 7 is being made. 8 (c) State with particularity the amount offered to 9 settle a claim for punitive damages, if any. 10 (d) State its total amount. 11 12 The offer shall be construed as including all damages which 13 may be awarded in a final judgment. 14 (3) A proposal may be made by or to any party or 15 parties and by or to any combination of parties properly 16 identified in the proposal. A joint proposal shall state the 17 amount and terms attributable to each party. 18 (4) Notwithstanding subsection (3), when a party is 19 alleged to be solely vicariously, constructively, 20 derivatively, or technically liable, whether by operation of 21 law or by contract, a joint proposal made by or served on such 22 a party need not state the apportionment or contribution as to 23 that party. Acceptance by any party shall be without prejudice 24 to rights of contribution or indemnity. 25 (5)(3) The offer shall be served upon the party to 26 whom it is made, but it shall not be filed unless it is 27 accepted or unless filing is necessary to enforce the 28 provisions of this section. 29 (6)(4) An offer shall be accepted by filing a written 30 acceptance with the court within 30 days after service. Upon 31 filing of both the offer and acceptance, the court has full 5 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 jurisdiction to enforce the settlement agreement. 2 (7)(5) An offer may be withdrawn in writing which is 3 served before the date a written acceptance is filed. Once 4 withdrawn, an offer is void. 5 (8)(6) Upon motion made by the offeror within 30 days 6 after the entry of judgment or after voluntary or involuntary 7 dismissal, the court shall determine the following: 8 (a) If a defendant serves an offer which is not 9 accepted by the plaintiff, and if the judgment obtained by the 10 plaintiff is at least 25 percent less than the amount of the 11 offer, the defendant shall be awarded reasonable costs, 12 including investigative expenses, and attorney's fees, 13 calculated in accordance with the guidelines promulgated by 14 the Supreme Court, incurred from the date the offer was 15 served, and the court shall set off such costs in attorney's 16 fees against the award. When such costs and attorney's fees 17 total more than the amount of the judgment, the court shall 18 enter judgment for the defendant against the plaintiff for the 19 amount of the costs and fees, less the amount of the award to 20 the plaintiff. 21 (b) If a plaintiff serves an offer which is not 22 accepted by the defendant, and if the judgment obtained by the 23 plaintiff is at least 25 percent more than the amount of the 24 offer, the plaintiff shall be awarded reasonable costs, 25 including investigative expenses, and attorney's fees, 26 calculated in accordance with the guidelines promulgated by 27 the Supreme Court, incurred from the date the offer was 28 served. 29 30 For purposes of the determination required by paragraph (a), 31 the term "judgment obtained" means the amount of the net 6 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 judgment entered, plus any postoffer collateral source 2 payments received or due as of the date of the judgment, plus 3 any postoffer settlement amounts by which the verdict was 4 reduced. For purposes of the determination required by 5 paragraph (b), the term "judgment obtained" means the amount 6 of the net judgment entered, plus any postoffer settlement 7 amounts by which the verdict was reduced. 8 (9)(7)(a) If a party is entitled to costs and fees 9 pursuant to the provisions of this section, the court may, in 10 its discretion, determine that an offer was not made in good 11 faith. In such case, the court may disallow an award of costs 12 and attorney's fees. 13 (b) When determining the reasonableness of an award of 14 attorney's fees pursuant to this section, the court shall 15 consider, along with all other relevant criteria, the 16 following additional factors: 17 1. The then apparent merit or lack of merit in the 18 claim. 19 2. The number and nature of offers made by the 20 parties. 21 3. The closeness of questions of fact and law at 22 issue. 23 4. Whether the person making the offer had 24 unreasonably refused to furnish information necessary to 25 evaluate the reasonableness of such offer. 26 5. Whether the suit was in the nature of a test case 27 presenting questions of far-reaching importance affecting 28 nonparties. 29 6. The amount of the additional delay cost and expense 30 that the person making the offer reasonably would be expected 31 to incur if the litigation should be prolonged. 7 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 (10)(8) Evidence of an offer is admissible only in 2 proceedings to enforce an accepted offer or to determine the 3 imposition of sanctions under this section. 4 (11) The provisions of this section create substantive 5 rights to the award of attorney's fees, and any procedural 6 provisions are directly related to the definition of those 7 rights. Any procedural aspects of this provision are intended 8 to implement the substantive provisions of the law. 9 Section 3. It is the intent of this act and the 10 Legislature to accord the utmost comity and respect to the 11 constitutional prerogatives of Florida's judiciary, and 12 nothing in this act should be construed as an effort to 13 impinge on those prerogatives. To that end, should any court 14 of competent jurisdiction enter a final judgment concluding or 15 declaring that a provision of this act improperly encroaches 16 upon the authority of the Florida Supreme Court to determine 17 the rules of practice and procedure in Florida courts, the 18 Legislature hereby declares its intent that such provision be 19 construed as a request for a rule change pursuant to section 20 2, Article V of the State Constitution and not as a mandatory 21 legislative directive. 22 Section 4. The amendment to subsection (4) of s. 23 57.105, Florida Statutes, is remedial in nature and is 24 intended to apply retroactively. 25 Section 5. This act shall take effect July 1, 2007, 26 and the amendments to s. 768.79, Florida Statutes, made by 27 this act shall apply only to offers made on or after that 28 date. 29 30 31 8 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 Delete everything before the enacting clause 4 5 and insert: 6 A bill to be entitled 7 An act relating to award of attorney's fees; 8 reenacting and amending s. 57.105, F.S., 9 relating to attorney's fees and sanctions for 10 raising unsupported claims or defenses; 11 providing an entitlement to fees and requiring 12 compliance with filing provisions; providing 13 legislative intent; reenacting and amending s. 14 768.79, F.S.; allowing offers to be made by or 15 to any party or parties; requiring joint 16 proposals to state the amount and terms 17 attributable to each party; providing 18 exceptions when a party is alleged to be solely 19 vicariously, constructively, derivatively, or 20 technically liable; providing legislative 21 intent; providing for specified retroactive 22 applicability; providing applicability; 23 providing an effective date. 24 25 WHEREAS, the legislative power of the state is vested 26 solely in the Legislature of the State of Florida, and the 27 Legislature is the only branch of government constitutionally 28 authorized to confer substantive rights, and 29 WHEREAS, shifting fees to the losing party is in 30 derogation of the common law American rule that each party in 31 a lawsuit pay its own attorney's fees, and 9 9:14 AM 03/15/07 s1726d-cm14-t02
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 1726 Barcode 545448 1 WHEREAS, the award of attorney's fees is a substantive 2 right that may only be conferred by the Legislature, and 3 WHEREAS, a substantive right created by the Legislature 4 may not be abolished by the courts, and 5 WHEREAS, the Legislature enacted chapter 99-225, Laws 6 of Florida, which amended both section 57.105, Florida 7 Statutes, and section 768.79, Florida Statutes, and 8 WHEREAS, the Legislature provided the standard for the 9 award of attorney's fees under section 57.105, Florida 10 Statutes, which provides that attorney's fees shall be awarded 11 to the prevailing party in a civil proceeding or action in 12 which the court finds that the losing party or the losing 13 party's attorney knew or should have known that a claim or 14 defense when initially presented to the court or at any time 15 before trial was not supported by the material facts necessary 16 to establish the claim or defense, or would not be supported 17 by the application of then-existing law to those material 18 facts, and 19 WHEREAS, the standard for the award of attorney's fees 20 under section 57.105, Florida Statutes, is not whether the 21 claim or defense was "frivolous," and 22 WHEREAS, the application of a standard other than the 23 standard adopted by the Legislature for the award of a 24 substantive right encroaches upon the Legislature's right to 25 confer substantive rights, and 26 WHEREAS, it is the intent of the Legislature to 27 preserve and protect the separation of powers clause in 28 section 3, Article II of the State Constitution, NOW, 29 THEREFORE, 30 31 10 9:14 AM 03/15/07 s1726d-cm14-t02