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Nudel v. Flagstar Bank, FSB

Citations: 60 So. 3d 1163; 2011 Fla. App. LEXIS 7181; 2011 WL 1878127Docket: No. 4D10-3001

Court: District Court of Appeal of Florida; May 18, 2011; Florida; State Appellate Court

Narrative Opinion Summary

In this case, a defendant sought attorney's fees following the dismissal of a mortgage foreclosure action initiated by a bank. The foreclosure was dismissed due to the bank's lack of standing, as the mortgage had been improperly assigned after the filing of the complaint. After the dismissal, the defendant pursued attorney's fees under the mortgage's fee provision and Florida Statutes section 57.105(7), which allows prevailing parties to recover such fees. Although initially denied based on an alleged waiver, the court found that the defendant had not waived her right to fees by failing to include the request in her motion to dismiss. The court clarified that a motion to dismiss does not constitute a pleading and that the defendant's subsequent motion for fees was timely. The court further held that the defendant was a prevailing party entitled to fees, despite the foreclosure action being voluntarily dismissed and later refiled by the bank. This decision aligns with precedent that does not differentiate between voluntary and involuntary dismissals regarding the determination of a prevailing party. Consequently, the prior order denying fees was reversed, and the case was remanded for further proceedings consistent with this opinion, with all judges concurring in the decision.

Legal Issues Addressed

Entitlement to Attorney's Fees under Florida Statutes Section 57.105(7)

Application: The court ruled that a defendant is entitled to recover attorney's fees as a prevailing party even after the voluntary dismissal of a case by the plaintiff.

Reasoning: A defendant is entitled to recover attorney's fees as a prevailing party under subsection 57.105(7) of the Florida Statutes following the dismissal of a mortgage foreclosure action.

Interpretation of Mortgage Fee Provisions

Application: The court held that the mortgage's fee provision allowing fees to the lender extends to the borrower as the prevailing party under subsection 57.105(7).

Reasoning: Nudel was entitled to recover attorney's fees based on the mortgage's provision allowing such fees to Flagstar for enforcement, which also extends to Nudel as the prevailing party under subsection 57.105(7).

Prevailing Party Status in Voluntary Dismissals

Application: The court determined that a defendant is considered a prevailing party when a plaintiff voluntarily dismisses a case, entitling the defendant to recover attorney’s fees.

Reasoning: The court affirmed that a defendant becomes a prevailing party when a plaintiff voluntarily dismisses a case, allowing Nudel to collect fees despite Flagstar's subsequent attempts to refile the case.

Timeliness of Attorney's Fees Motion

Application: The court clarified that a motion for attorney’s fees is timely if filed within thirty days of dismissal and does not need to be included in the initial motion to dismiss.

Reasoning: Nudel's motion for fees was timely, as it was filed within thirty days of the dismissal.

Waiver of Attorney's Fees Claim

Application: The court found that there was no waiver of the attorney's fees claim by not including it in the motion to dismiss, as a motion to dismiss is not considered a pleading.

Reasoning: The court ruled that Nudel did not waive her claim for fees, as she correctly sought them in a motion filed after the dismissal, and before filing any responsive pleading.