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Novastar Mortgage, Inc. v. Strassburger

Citations: 855 So. 2d 130; 2003 Fla. App. LEXIS 11716; 2003 WL 21749617Docket: Nos. 4D02-4213, 4D02-4280

Court: District Court of Appeal of Florida; July 30, 2003; Florida; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Novastar against an award of attorney’s fees to the Strassburgers. Novastar contested the fee award on the basis that the Strassburgers were not parties to the original mortgage, which contained the fee provision. The court agreed with Novastar that the Strassburgers could not claim fees under the mortgage provision, citing precedent from Edwards v. Wills. However, the court upheld the fee award under the offer of judgment statute, section 768.79, Florida Statutes, as the Strassburgers had prevailed in the litigation. The case arose when Novastar, having loaned money for a mortgage, did not receive assignment of the note and mortgage due to an error or misconduct. Subsequently, the Strassburgers became involved in the case after purchasing the property through a separate foreclosure proceeding. Despite Novastar’s success against the title insurer, it did not prevail against the Strassburgers. The court concluded that the action was fundamentally about monetary damages and fee reimbursement, referencing Nelson v. Marine Group of Palm Beach, Inc. and Stewart v. Tasnet, Inc., thus supporting the applicability of the offer of judgment statute. Judges Warner and Shahood concurred with the decision, affirming the award of attorney’s fees to the Strassburgers.

Legal Issues Addressed

Action for Damages and Fee Reimbursement

Application: The court found the lawsuit constituted an action for damages regarding reimbursement for attorney’s fees and costs, supporting the applicability of the offer of judgment statute.

Reasoning: However, it also found that the lawsuit constituted an action for damages concerning reimbursement for attorney’s fees and costs, thus making the offer of judgment statute applicable.

Attorney’s Fees under Mortgage Provisions

Application: The court determined that the Strassburgers, not being parties to the original mortgage, could not claim attorney's fees under the mortgage provision.

Reasoning: The court determined that since the Strassburgers were not parties to the mortgage, they could not claim fees under that mortgage provision, citing Edwards v. Wills.

Offer of Judgment Statute, Section 768.79, Florida Statutes

Application: The court affirmed the award of attorney’s fees to the Strassburgers based on their prevailing status under the offer of judgment statute.

Reasoning: The court agrees with Novastar's position regarding the mortgage but affirms the fee award based on the Strassburgers prevailing under the offer of judgment statute, section 768.79, Florida Statutes.

Reciprocal Attorney’s Fees under Section 57.105(6)

Application: The Strassburgers were awarded attorney’s fees due to the reciprocal nature of the mortgage's attorney’s fee provision as established by section 57.105(6).

Reasoning: The Strassburgers, who were awarded attorney’s fees based on the mortgage's attorney’s fee provision and the reciprocal nature established by section 57.105(6).