HB 1193

1
A bill to be entitled
2An act relating to sanctions for certain court pleadings;
3amending s. 57.105, F.S.; prohibiting a monetary sanction
4against a represented party for a claim that is presented
5as a good faith argument but that is found to not be
6supported by the application of then-existing law to
7material facts; prohibiting sanctions against a party or
8its attorneys by a court on its own initiative if the case
9has already been settled or voluntarily dismissed by that
10party; providing an effective date.
11
12Be It Enacted by the Legislature of the State of Florida:
13
14     Section 1.  Section 57.105, Florida Statutes, is amended to
15read:
16     57.105  Attorney's fee; sanctions for raising unsupported
17claims or defenses; exceptions; service of motions; damages for
18delay of litigation.--
19     (1)  Upon the court's initiative or motion of any party,
20the court shall award a reasonable attorney's fee, including
21prejudgment interest, to be paid to the prevailing party in
22equal amounts by the losing party and the losing party's
23attorney on any claim or defense at any time during a civil
24proceeding or action in which the court finds that the losing
25party or the losing party's attorney knew or should have known
26that a claim or defense when initially presented to the court or
27at any time before trial:
28     (a)  Was not supported by the material facts necessary to
29establish the claim or defense; or
30     (b)  Would not be supported by the application of then-
31existing law to those material facts.
32
33However, the losing party's attorney is not personally
34responsible if he or she has acted in good faith, based on the
35representations of his or her client as to the existence of
36those material facts. If the court awards attorney's fees to a
37claimant pursuant to this subsection, the court shall also award
38prejudgment interest.
39     (2)  Paragraph (1)(b) does not apply if the court
40determines that the claim or defense was initially presented to
41the court as a good faith argument for the extension,
42modification, or reversal of existing law or the establishment
43of new law, as it applied to the material facts, with a
44reasonable expectation of success.
45     (2)(3)  At any time in any civil proceeding or action in
46which the moving party proves by a preponderance of the evidence
47that any action taken by the opposing party, including, but not
48limited to, the filing of any pleading or part thereof, the
49assertion of or response to any discovery demand, the assertion
50of any claim or defense, or the response to any request by any
51other party, was taken primarily for the purpose of unreasonable
52delay, the court shall award damages to the moving party for its
53reasonable expenses incurred in obtaining the order, which may
54include attorney's fees, and other loss resulting from the
55improper delay.
56     (3)  Notwithstanding subsections (1) and (2), monetary
57sanctions may not be awarded:
58     (a)  Under paragraph (1)(b) if the court determines that
59the claim or defense was initially presented to the court as a
60good faith argument for the extension, modification, or reversal
61of existing law or the establishment of new law, as it applied
62to the material facts, with a reasonable expectation of success.
63     (b)  Under paragraph (1)(a) or paragraph (1)(b) against the
64losing party's attorney if he or she has acted in good faith,
65based on the representations of his or her client as to the
66existence of those material facts.
67     (c)  Under paragraph (1)(b) against a represented party.
68     (d)  On the court's initiative under subsections (1) and
69(2) unless sanctions are awarded before a voluntary dismissal or
70settlement of the claims made by or against the party that is,
71or whose attorneys are, to be sanctioned.
72     (4)  A motion by a party seeking sanctions under this
73section must be served but may not be filed with or presented to
74the court unless, within 21 days after service of the motion,
75the challenged paper, claim, defense, contention, allegation, or
76denial is not withdrawn or appropriately corrected.
77     (5)  In administrative proceedings under chapter 120, an
78administrative law judge shall award a reasonable attorney's fee
79and damages to be paid to the prevailing party in equal amounts
80by the losing party and a losing party's attorney or qualified
81representative in the same manner and upon the same basis as
82provided in subsections (1)-(4). Such award shall be a final
83order subject to judicial review pursuant to s. 120.68. If the
84losing party is an agency as defined in s. 120.52(1), the award
85to the prevailing party shall be against and paid by the agency.
86A voluntary dismissal by a nonprevailing party does not divest
87the administrative law judge of jurisdiction to make the award
88described in this subsection.
89     (6)  The provisions of this section are supplemental to
90other sanctions or remedies available under law or under court
91rules.
92     (7)  If a contract contains a provision allowing attorney's
93fees to a party when he or she is required to take any action to
94enforce the contract, the court may also allow reasonable
95attorney's fees to the other party when that party prevails in
96any action, whether as plaintiff or defendant, with respect to
97the contract. This subsection applies to any contract entered
98into on or after October 1, 1988.
99     Section 2.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.