Maseda v. Honda Motor Co., Ltd.

128 F.R.D. 124 (S.D. Fla. 1989) · United States District Court for the Southern District of Florida · August 28, 1989

Summary

The court denied Honda’s motion for entry of judgment, motion for Rule 11 sanctions, Hartford’s motion to intervene, and Packer’s motion to amend its crossclaim. Following an Eleventh Circuit remand, the court held that Packer could recover reasonable attorney’s fees incurred in defending against the underlying claims, subject to the prior fee arrangement and excluding indemnification-related work, and awarded $18,750 in attorney’s fees.

Holdings

  1. An indemnitee may recover reasonable attorney's fees incurred in defending against indemnifiable claims even when its insurer retained counsel and paid the fees; the insurer's payment does not entitle the indemnitor to judgment against the indemnitee.
  2. When the lodestar approach applies, a Florida court-awarded attorney's fee may not exceed the fee arrangement reached between the attorney and client, including a noncontingent fee arrangement.
  3. Rule 11 sanctions were not warranted because Packer's position concerning the amount of recoverable fees was grounded in existing law or a good-faith argument for its development.
  4. Packer could recover only reasonable fees and costs incurred in defending against matters for which it was entitled to indemnification, not fees incurred in establishing its indemnity claim.

Questions Presented

  1. Whether Honda was entitled to entry of judgment in its favor because Hartford, rather than Packer, retained counsel and paid the defense fees.
  2. Whether Hartford should be permitted to intervene and whether Packer should be permitted to amend its crossclaim.
  3. Whether Packer's fee submissions warranted Rule 11 sanctions.
  4. Whether Florida law limits a court-awarded attorney's fee to the prior fee arrangement between the insurer and its attorney.
  5. What portion of the fees was recoverable because it was incurred defending against claims for which Packer was entitled to indemnification.

Disposition

other

Cases Cited (12)

  • Maseda v. Honda Motor Co., Ltd., 861 F.2d 1248, 1257 (11th Cir. 1988)(followed)
  • Ross v. Fay's Drug Co., 132 Misc. 2d 65, 502 N.Y.S.2d 945 (N.Y. Sup. Ct. 1986)(persuasive)
  • Jones v. St. Paul Fire & Marine Ins. Co., 108 F.2d 123, 125 (5th Cir. 1939)(followed)
  • Bravo Electric Co. Inc. v. Carter Electric Co., 532 So. 2d 698, 699, 702-03 (Fla. Dist. Ct. App. 1988)(distinguished)
  • Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 259 n. 31 (1975)(followed)
  • Perez-Borroto v. Brea, 544 So. 2d 1022, 1023, 1028 (Fla. 1989)(followed)
  • Florida Patient's Compensation Fund v. Rowe, 472 So. 2d 1145, 1151 (Fla. 1985)(followed)
  • Miami Children's Hospital v. Tamayo, 529 So. 2d 667, 668 (Fla. 1988)(followed)
  • Bosem v. Bosem, 279 So. 2d 863 (Fla. 1973)(distinguished)
  • Shannon v. Kaiser Aluminum & Chemical Corp., 749 F.2d 689, 690 (11th Cir. 1985)(followed)

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