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Salzman v. Reyes

Citations: 198 So. 3d 1068; 2016 Fla. App. LEXIS 12560; 2016 WL 4396040Docket: No. 1D16-593

Court: District Court of Appeal of Florida; August 18, 2016; Florida; State Appellate Court

Narrative Opinion Summary

In this workers' compensation case, the former attorney of the Claimant appealed the decision of the Judge of Compensation Claims (JCC) to deny approval of a stipulated quantum meruit attorney's fee. The central issue was whether the JCC abused her discretion in rejecting the parties’ stipulation regarding the fee's entitlement and amount. Under Florida law, quantum meruit allows an attorney discharged without cause to recover fees limited by the contract amount, applicable when the contingency has occurred. The Appellant, after securing a settlement offer, was discharged, and a successor attorney obtained a higher settlement. The Appellant and Claimant agreed to a $1,375 fee, deemed reasonable by both parties and the successor attorney during the hearing. However, the JCC denied the fee, citing insufficient evidence of benefit to the Claimant. The appellate court determined that the JCC's decision lacked competent, substantial evidence (CSE) and reversed it, noting that stipulations should not be disregarded absent evidence of fraud or misrepresentation. The case was remanded for approval of the stipulated fee, concluding that the JCC had abused her discretion.

Legal Issues Addressed

Application of Quantum Meruit Rule

Application: The rule allows an attorney discharged without cause to recover reasonable fees limited by the contract amount, applicable in premature discharge before contingency.

Reasoning: Florida's modified quantum meruit rule permits recovery limited to the maximum contract fee in premature discharge cases.

Competent Substantial Evidence Requirement

Application: The appellate court found that the JCC's denial of the stipulated fee was not supported by competent, substantial evidence and thus constituted an abuse of discretion.

Reasoning: The record lacked any CSE to contradict the stipulated fee, leading the court to reverse and remand the case for approval of the stipulated quantum meruit fee of $1,375.

Quantum Meruit in Workers' Compensation Cases

Application: The appellate court reversed the JCC's decision, determining that the quantum meruit fee agreed upon by the parties was unjustly denied due to lack of competent, substantial evidence.

Reasoning: The court reversed the JCC's decision, finding that she abused her discretion by rejecting the parties’ stipulation regarding both entitlement and amount of the quantum meruit fee.

Stipulations in Attorney's Fee Disputes

Application: The appellate court emphasized that stipulations should not be disregarded without evidence of fraud or misrepresentation, highlighting the JCC's error in rejecting the stipulated fee.

Reasoning: The appellate court noted that while a JCC can reject a stipulation if refuted by CSE, such stipulations should not be disregarded without evidence of fraud or misrepresentation.