MARC
P. OSSINSKY ATTORNEY AT LAW REPORTED CASES
Case 3
717 So.2d 1120
23 Fla. L. Weekly D2236
(Cite as: 717 So.2d 1120)
James CODY and Debbie Cody, Petitioners,
v.
COLONIAL IMAGING PRODUCTS & SERVICE, et al., Respondents.
No. 98-1221.
District Court of Appeal of Florida, Fifth District.
Oct. 2, 1998.
*1121 David B. Falstad and Richard E. Dunegan of Gurney & Handley, P.A., Orlando, for Petitioners. |
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Marc P. Ossinsky,
Winter Park, for Respondent Colonial Imaging Products & Service.
Keith A. Graham of
Marchena & Graham, P.A., Orlando, for Respondent
Fatima Calkins.
DAUKSCH, Judge.
Petitioners, James
Cody and Debbie Cody (hereinafter "Cody"), seek certiorari
review of orders awarding attorney fees in favor of
respondents and staying litigation until the attorney
fees are paid. The underlying action involves respondent
corporation, Colonial Imaging Products and Service
("Colonial"), and its officers, Cody and respondents
Fatima Calkins and David Calkins ("Calkins"), who are
deadlocked in the management of the corporation's affairs.
Cody filed a complaint
against Colonial and Calkins for dissolution of corporation
and appointment of a receiver. Calkins served an answer
and counterclaim against Cody for breach of fiduciary
duty. Cody voluntarily dismissed the complaint for
dissolution of corporation, and served an answer and "counterclaim" to
Calkins' counterclaim. Calkins and Colonial moved for
attorney fees and costs. After a hearing, the court
determined that Colonial and Calkins were entitled
to attorneys fees for defending the first action brought
by Cody, which was later voluntarily dismissed. The
court found that Cody's subsequent "counterclaim" to
the Calkins' counterclaim was improper and unauthorized
under the civil rules of procedure. The court also
found that Cody's "counterclaim" was based on the same
claims raised by the initial complaint because it attempted
to establish Cody's majority interest in Colonial and
alleged that Calkins had breached their fiduciary duty
and attempted to destroy Colonial. The court ordered
Cody to pay Calkins the amount of $6,869 for attorney
fees and $755.30 for costs, for a total of $7,624.30.
The court ordered Cody to pay Colonial the amount of
$1,962.37 for attorney fees. The court further ordered
that Cody's counterclaim and pending motions would
be stayed until Cody complied with the terms of the
order and made payment.
[1] Section 607.1431(4),
Florida Statutes (1997) reads as follows:
If the court determines
that any party has commenced, continued, or participated
in an action under 607.1430 (seeking judicial dissolution
of a corporation) and has acted arbitrarily, frivolously,
vexatiously, or not in good faith, the court may in
its discretion award attorney's fees and other reasonable
expenses to the other parties to the action who have
been affected adversely by such actions. (parenthetical
added)
The court in awarding
attorney's fees did not find that Cody acted arbitrarily,
frivolously, vexatiously, or in bad faith. Nor did
any party allege that there was a contractual provision
for the recovery of attorney's fees. There was no other
cited statutory basis for the award of attorney's fees
other than section 607.1431(4), Florida Statutes, and
the court did not make the requisite findings under
that statute to support the award.
*1122 Florida
Rule of Civil Procedure 1.420(d) provides for costs
to be assessed for the dismissal of a civil action.
It further provides that if a party who has dismissed
a claim commences an action based upon the same claim
against the same adverse party, the court shall make
an order for the payment of costs of the claim previously
dismissed and shall stay the proceedings until the
party has complied with the order. Rule 1.420(d), though,
only provides for costs, not attorney fees. See O.A.G.
Corp. v. Britamco Underwriters, Inc., 707 So.2d 785
(Fla. 3d DCA 1998).
[2] The trial
court departed from the essential requirements of law
in awarding attorney's fees. The court likewise erred
by staying Cody's proceedings. Even if attorney fees
had been recoverable under section 607.1431(4), the
statute does not authorize a stay of litigation pending
payment. Certiorari relief is appropriate in this case
because of the erroneous stay. We therefore grant the
petition for certiorari and quash the orders awarding
attorney fees.
PETITION GRANTED;
ORDERS QUASHED.
GOSHORN and HARRIS, JJ., concur.
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