Palm Beach Polo Holdings, Inc. v. Stewart Title Guaranty Co.

Summary

The Florida Fourth District Court of Appeal reviewed consolidated appeals involving a title insurer’s recovery of attorneys’ fees and costs incurred while representing an insured under a reservation of rights, as well as sanctions under section 57.105, Florida Statutes. The court upheld the insurer’s entitlement to reimbursement and found competent, substantial evidence supporting the sanctions award, but reversed and remanded because the trial court failed to make the required express finding that the insured’s claims lacked a justiciable issue. The court permitted the same sanctions award to be entered after the required findings without receiving additional evidence.

Holdings

1. A trial court awarding fees and costs under section 57.105 must make an explicit finding on the record that the action involved a complete absence of a justiciable issue of law or fact, supported by substantial competent evidence.
2. Competent, substantial evidence supported the finding that the insured's two-count complaint was frivolous and supported the amount of the sanctions.
3. The court did not disturb the insurer's entitlement to reimbursement or the resulting fee-and-cost judgment; the reversal was limited to the technically deficient section 57.105 sanctions order.

Questions Presented

1. Whether the trial court properly awarded attorneys' fees and costs as sanctions under section 57.105, Florida Statutes, despite failing to make an express finding that the insured's action lacked any justiciable issue of law or fact.
2. Whether competent, substantial evidence supported the amount of the section 57.105 sanctions.
3. Whether the insurer was entitled to reimbursement of attorneys' fees and costs incurred while representing the insured under a reservation of rights in an action later determined not to be covered.

Disposition

reversed_and_remanded