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Baldoria v. SECURITY REALTY INV. INC.
Citations: 581 So. 2d 189; 1991 WL 87254Docket: 90-2116
Court: District Court of Appeal of Florida; May 28, 1991; Florida; State Appellate Court
Margaret Baldoria appealed the trial court's decision to deny her attorney's fees following litigation concerning a real estate contract with sellers Irving and Diane Feinzig and broker Security Realty Investment, Inc. Baldoria had entered a contract to purchase a condominium, providing a $10,000 deposit held by Security. After discovering negligent misrepresentations regarding the property, she sought to rescind the contract and recover her deposit, leading to a lawsuit against the sellers and Security. The jury found Security liable for negligent misrepresentations, awarding Baldoria $10,000, but neither party recovered against the other. The trial court reserved the right to award attorney's fees but ultimately denied Baldoria's motion for fees against both the sellers and Security. The appellate court affirmed this decision, highlighting that no party prevailed in the litigation against the sellers, as neither recovered from the other, thus negating any basis for awarding attorney's fees under the contract's prevailing party clause. Additionally, Security was not a party to the contract's attorney's fees provision, and the escrow agreement did not apply since Security did not breach its duties. The broker's fee clause, which allows for attorney's fees, was deemed irrelevant to Baldoria, as she was not a signatory to that agreement. Security's attempt to claim attorney's fees from the buyer as part of its counterclaim is deemed irrelevant, as neither party can recover attorney's fees from the other based on the broker's fee clause. Moreover, the buyer's claim that misrepresentations made by Security, acting as the buyer's broker, should be attributed to the seller is unfounded; Security's role was solely as the buyer's agent. The sharing of the commission with the seller's broker does not alter this agency relationship. Regarding escrow, any escrow agent receiving funds is obligated to deposit and hold those funds according to the contract terms. The buyer's performance is required even if funds do not clear. If the agent faces uncertainty about their duties, they may retain the escrowed items until the parties agree on disbursement or a court resolves the matter. The agent can also deposit the funds with the circuit court clerk, terminating their liability except for accounting for previously disbursed items. If the agent is a licensed real estate broker, they must adhere to relevant statutes. If involved in litigation, the agent can recover reasonable attorney's fees and costs as court costs from the prevailing party. The parties acknowledge that the agent is not liable for misdelivery of escrow items unless it results from willful breach or gross negligence. The broker's fee clause states that in any litigation related to the broker's fee, the prevailing party is entitled to recover reasonable attorney's fees and costs.