Association Liable for Attorney's Fees after Violating Deed Restrictions
A district court awarded attorney's fees and punitive damages against owners who violated deed restrictions in Parton v. Palomino, 928 So. 2d 449 (Fla. Dist. Ct. App. 2006). Plaintiffs, the Partons, who resided in a deed-restricted community, decided to move a modular home on their property. The other members of the Association blocked the roadway so that the Partons could not have their home delivered. The Association claimed that the deed restrictions prohibited mobile homes, even if the Partons said the home was modular. Yet, the Association owners were violating deed restrictions also by obstructing the common roadway.
The Patrons sued the Association for breach of contract, tortious interference with a contract, and civil conspiracy. The court first awarded a temporary injunction forbidding the Association to block the common road. Plaintiffs sought compensatory and punitive damages, as well as attorney’s fees. The jury awarded the Patrons $5,000 in compensatory damages, which plaintiffs could recover entirely from any defendant. The jury also awarded punitive damages pro rated equally among defendants.
The court of appeals remanded the case to trial court to follow the above findings.
The deed restrictions had a provision that awarded attorney fees to a party that brought an action and prevailed. Consequently, the trial court awarded $9,900 for attorney’s fees resulting from having to get a temporary injunction, to be divided among the defendants equally. In addition, the trial court found that the attorney’s fees incurred after the Partons made an offer of settlement to some defendants amounted to $240,000. The court calculated $240,000 by reducing by 25% the amount calculated by plaintiffs’ expert, which the court found too excessive.
The Patrons disagreed with the trial court’s decision and appealed. The court of appeals found that the trial court was wrong in awarding attorney’s fees only up to the time the temporary injunction was granted. The language of the deed restrictions mandated liability for attorney’s fees through the conclusion of the trial. Also, the court of appeals stated that in calculating the amount expended on attorney’s fees after the offer of settlement had been made, the trial court had to consider exact hourly rates and show more specific evidence that the fees were excessive.
Lastly the court of appeals found that the owners should be jointly and severally liable for the awarded fees. Each defendant blocked the roadway. The deed restrictions stated anyone who violated would be liable for all costs and attorney fees. Therefore, plaintiff should be able to recover all attorney’s fees from any individual defendant.
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