Court Reverses Fee Award in Insurance Claim Case

The Third District Court of Appeal in Florida has reversed a prior fee award in the case of Universal Property & Casualty Insurance Company v. Medero. The court found that the trial court had not sufficiently justified its decisions to award a higher hourly rate and a multiplier to the plaintiff's counsel for a water damage claim. The appeal stemmed from a lawsuit regarding a property damage claim where coverage was acknowledged, but the amount received was disputed. The trial court had originally based its fee award on a higher proposed hourly rate of $550, while the existing retainer stated $400. Furthermore, a 1.8 multiplier was awarded based on the case being taken on a contingency basis, which the appellate court ruled lacked evidential support or necessary findings.

The appellate court affirmed that for a trial court to award fees that deviate from the agreed retainer, it must provide substantial evidence and rationale as per Florida law. They noted that the trial court had not fulfilled its responsibility to document findings associated with both the increased hourly rate and the multiplier's justification. Consequently, the case was sent back to the trial court to recalculate the attorney fees in accordance with the original hourly rate without applying the contingency multiplier.