HOUSEHOLD FINANCE CORP., III v. ELIZABETH WILLIAMS ( 2020 )


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  •        DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
    FOURTH DISTRICT
    HOUSEHOLD FINANCE CORP III,
    Appellant,
    v.
    ELIZABETH WILLIAMS, HOUSEHOLD FINANCE CORPORATION III,
    STATE OF FLORIDA, DEPARTMENT OF REVENUE, CLERK OF THE
    COURT, BROWARD COUNTY, FLORIDA, and LR CREDIT 11, LLC,
    Appellees.
    No. 4D18-1570
    [ February 19, 2020 ]
    Appeal and cross-appeal from the Circuit Court for the Seventeenth
    Judicial Circuit, Broward County; Joel T. Lazarus, Senior Judge; L.T. Case
    No. CACE-13-013934.
    David Rosenberg, Cynthia L. Comras and Jarrett Cooper of Robertson,
    Anschutz & Schneid, P.L., Boca Raton, for Appellant/Cross-Appellee.
    Jonathan Kline of Jonathan Kline, P.A., Weston, for Appellee/Cross-
    Appellant Elizabeth Williams.
    TAYLOR, J.
    The lender, Household Finance Corporation, appeals the trial court’s
    final order awarding the borrower, Elizabeth Williams, attorney’s fees.
    Because we conclude that the trial court erred in determining the amount
    of fees due to the borrower, we reverse and remand for proceedings
    consistent with this opinion.
    The lender brought a foreclosure suit against the borrower with two
    counts. Count I sought foreclosure and Count II sought to reform the legal
    description of the property listed in the mortgage because of a scrivener’s
    error.
    Following trial, the trial court   entered final judgment in favor of the
    lender on the foreclosure count;      however, the trial court involuntarily
    dismissed Count II. Thus, both        the lender and borrower prevailed on
    separate counts. The trial court      determined that both were entitled to
    attorney’s fees.
    A year later, the borrower moved to determine attorney’s fees on the
    reformation count. At the hearing to determine the amount of fees due,
    the borrower presented a fee grid, a retainer agreement, and testimony by
    her counsel and a fee expert. The fee grid did not specify which tasks were
    related to which counts or how much time per task was allocated to either
    count. The fee grid also detailed four entries for preparation and
    attendance at the hearing on the determination of the amount of fees due
    to the borrower.
    The borrower’s position at the hearing was that the fees could not be
    apportioned between the counts because the foreclosure count and the
    reformation count were so inextricably intertwined that apportionment of
    fees was impossible. The trial court granted all the borrower’s requested
    fees for both counts at a reduced rate and hours. The lender now appeals
    the trial court’s decision.
    On appeal, the lender argues that the trial court abused its discretion
    by awarding the borrower all her attorney’s fees because the counts were
    not inextricably intertwined. The lender further argues that the trial court
    erred by awarding the borrower fees for entries that were allocated to
    preparing and attending the hearing that determined the amount of fees
    due to the borrower—in other words, fees for fees. We agree.
    An abuse of discretion standard applies when reviewing a trial court’s
    determination of attorney’s fees; however, a trial court’s determination of
    whether multiples claims within a lawsuit are separate and distinct is
    subject to a de novo review. Anglia Jacs & Co. v. Dubin, 
    830 So. 2d 169
    ,
    171 (Fla. 4th DCA 2002). An award of attorney’s fees must be supported
    by competent, substantial evidence. Tutor Time Merger Corp. v. MeCabe,
    
    763 So. 2d 505
    , 506 (Fla. 4th DCA 2000).
    Section 57.105(7), Florida Statutes, allows courts to grant reasonable
    attorney’s fees to a party when that party prevails in any action regarding
    a contract that allowed for attorney’s fees. However, this statute does not
    permit an award of “fees for fees.” Mediplex Constr. of Fla., Inc. v. Schaub,
    
    856 So. 2d 13
    , 15 (Fla. 4th DCA 2003).
    A party may recover attorney’s fees for time spent establishing
    entitlement to fees; however, a party cannot recover fees for time spent
    contesting or determining the amount of fees due. See 
    id.
     at 14–15; Eisman
    v. Ross, 
    664 So. 2d 1128
    , 1129 (Fla. 3d DCA 1995).
    2
    “In a case with multiple claims, ‘where each claim is separate and
    distinct and would support an independent action, as opposed to being an
    alternative theory of liability for the same wrong, the prevailing party on
    each distinct claim is entitled to an award of attorney’s fees for those fees
    generated in connection with that claim.’” Padgett v. Kessinger, 
    190 So. 3d 105
    , 108 (Fla. 4th DCA 2015) (quoting Folta v. Bolton, 
    493 So. 2d 440
    ,
    442 (Fla. 1986)).
    “When a party prevails on only a portion of the claims made in the
    litigation, the trial court must evaluate the relationship between the
    successful and unsuccessful claims and determine whether the
    investigation and prosecution of the successful claims can be separate
    from the unsuccessful claims.” Anglia Jacs & Co., 
    830 So. 2d at 172
    (citation omitted). Put another way, a full fee for multiple claims—
    successful and unsuccessful—may be awarded if the claims are
    inextricably intertwined. 
    Id.
     “Claims are inextricably intertwined when a
    determination of the issues in one action would necessarily be dispositive
    of the issues raised in the other.” 
    Id.
     (citations and internal quotation
    marks omitted).
    “Claims are separate and distinct if ‘they could support an independent
    action and are not simply alternative theories of liability for the same
    wrong.’” Padgett, 190 So. 3d at 108 (quoting Avatar Dev. Corp. v. DePani
    Constr., Inc., 
    883 So. 2d 344
    , 346 (Fla. 4th DCA 2004)).
    A reformation claim is outside the terms of the contract and cannot
    provide a basis for attorney’s fees and costs pursuant to the contract. See
    Natarajan v. Horn, 
    402 So. 2d 596
    , 597 (Fla. 2d DCA 1981).
    The party seeking fees bears the burden to allocate the fees to the issues
    which fees were awarded or show that the issues are so intertwined that
    allocation is infeasible. Waverly at Las Olas Condo. Ass’n v. Waverly Las
    Olas, LLC, 
    88 So. 3d 386
    , 388 (Fla. 4th DCA 2012).
    In Deustche Bank v. Quintela, 
    268 So. 3d 156
    , 158–59 (Fla. 4th DCA
    2019), the borrower sought attorney’s fees related to all counts, even
    though the borrower prevailed on the issue of reformation but not on the
    issue of foreclosure. The borrower argued that the defenses to both counts
    were inextricably intertwined. 
    Id.
     The trial court found that the borrower
    was entitled to fees and awarded him all fees, including fees for the count
    on which the borrower did not prevail. 
    Id.
     We reversed the award, holding
    that the borrower was not the prevailing party because the fact that the
    bank obtained a final judgment of foreclosure without reforming the legal
    description demonstrated that the reformation count was insignificant and
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    not intertwined with the foreclosure count. 
    Id. at 159
    .
    Here, it is important to note that the issues raised on appeal do not
    concern entitlement to fees; rather, the issues raised on appeal concern
    the amount of fees due to the borrower. Because the lender has not
    challenged entitlement, we do not disturb the trial court’s determination
    that the borrower is entitled to fees on the reformation count.
    Nevertheless, under Quintela, the principle remains that reformation is not
    a significant issue and cannot be inextricably intertwined with a
    foreclosure count.
    The borrower had the burden to allocate the fees to the reformation
    count or demonstrate that such an allocation was not possible. The
    relevant provision in the mortgage provides that the lender shall be entitled
    to all expenses when pursuing foreclosure. Here, the borrower did not
    present any evidence to establish that the claims were intertwined, but
    instead argued only that the claims were intertwined because they arose
    from the same action. The lender countered this argument with its fee
    expert, who testified about the different elements of foreclosure and
    reformation. Indeed, the borrower’s own witness stated that reformation
    is a matter usually challenged at a later time or after trial. Thus, as we
    held in Quintela, we conclude here that the lender’s reformation claim was
    completely outside the terms of the contract and cannot be inextricably
    intertwined with the foreclosure count.
    Because the borrower did not satisfy her burden to demonstrate that
    the counts were intertwined, the trial court abused its discretion in
    awarding the borrower all her fees and costs, including those attributed to
    the foreclosure claim.
    Finally, the trial court erred by awarding fees for the entries in the fee
    grid that were allocated to preparing and attending the hearing that
    determined the amount of fees due.
    We reverse the trial court’s determination of fees and remand for further
    proceedings consistent with this opinion. On remand, the trial court shall
    require the borrower to allocate time worked on tasks related only to the
    reformation count. Further, the trial court shall not award any fees for
    time allotted to the preparation or attendance for determining the amount
    of fees due to the borrower. This disposition renders the borrower’s cross-
    appeal moot.
    Reversed and Remanded.
    4
    CIKLIN and KUNTZ, JJ., concur.
    *      *        *
    Not final until disposition of timely filed motion for rehearing.
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