Oceana Star Allen and William Scott Allen v. Joseph K. Helms, and Geico General Insurance Company
CourtDistrict Court of Appeal of Florida
Date FiledMarch 24, 2020
Docket1D18-2417
StatusPublished
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Full Opinion
FIRST DISTRICT COURT OF APPEAL
STATE OF FLORIDA
_____________________________
No. 1D18-2417
_____________________________
OCEANA STAR ALLEN and
WILLIAM SCOTT ALLEN,
Appellants,
v.
JOSEPH K. HELMS, and GEICO
GENERAL INSURANCE COMPANY,
Appellees.
_____________________________
On appeal from the Circuit Court for Clay County.
Don H. Lester, Judge.
March 24, 2020
JAY, J.
Oceana Star Allen and William Scott Allen appeal the trial
court’s order granting Appellees’ motions for costs and fees and
declaring the Allens’ Notice of Withdrawal of Proposals for
Settlement “to be a nullity and of no force and effect.” We affirm.
Introduction
Despite the unremarkable prologue, this appeal presents
issues that are anything but ordinary. In fact, the trial court
commenced its thorough and precise analysis of the issues by
noting that, to its knowledge, “the issues presented . . . are matters
of first impression, certainly in Florida, and, based on the Court’s
legal research, perhaps anywhere in the country.” Our own
research has led us to conclude that the trial court’s assertion does
not hit far from the mark. We, too, failed to locate a case directly
on point: a case where the plaintiffs, in the course of their personal
injury action, “purchased” from the trustee of the
debtor/defendant’s bankruptcy estate the defendant’s earlier-
served proposals for settlement, which the plaintiffs had earlier
rejected, and which they later purported to withdraw to avoid
paying attorney’s fees and costs under section 768.79, Florida
Statutes, and Florida Rule of Civil Procedure 1.442. Faced with
those facts, the trial court ably construed nuanced principles of
state and federal law to craft a well-reasoned decision. 1
Background
In May 2009, Oceana Star Allen and Joseph K. Helms were
involved in an automobile collision. In August 2010, Mrs. Allen and
her husband, William Scott Allen, filed a lawsuit naming Mr.
Helms as the defendant and alleging damages suffered by the
Allens arising from the accident. Mrs. Allen claimed direct
damages for her alleged personal injuries, while Mr. Allen sought
derivative damages for loss of consortium. Mr. Helms was insured
by GEICO General Insurance Company, which ultimately
shouldered his defense.
One year later, in September 2011, Mr. Helms served
separate proposals for settlement pursuant to section 768.79 and
rule 1.442. 2 The first proposal was made to Mrs. Allen for $99,000
1 Appellants have raised three points on appeal in arguing for
reversal. We affirm on the issue that Appellees failed to properly
allocate their attorney’s fees and costs between Appellees’ two
Proposals for Settlement without further comment.
2 Section 768.79(1), Florida Statutes, entitled “Offer of
judgment and demand for judgment,” provides in pertinent part as
follows:
In any civil action for damages filed in the courts of
this state, if a defendant files an offer of judgment which
is not accepted by the plaintiff within 30 days, the
defendant shall be entitled to recover reasonable costs
2
in payment of the claims she alleged against him; the second
offered Mr. Allen $1000 for his claim. The total of the proposals
represented the bodily injury limits of Mr. Helms’ policy with
GEICO. The Allens rejected the proposals.
Next, in December 2011, Mr. Helms filed for Chapter 7
bankruptcy in the United States Bankruptcy Court for the Middle
District of Florida. His “Schedule F—Creditors Holding Unsecured
Nonpriority Clams” listed the Allens’ lawsuit against him as an
asset of the bankruptcy estate and noted the limits of his
insurance. In his “Schedule B—Personal Property,” however, Mr.
Helms did not list the proposals for settlement as assets. A
suggestion of bankruptcy was filed in the civil action on January
24, 2012, resulting in an automatic stay. The Allens moved for
relief from the stay by agreeing to proceed solely against the
available insurance proceeds. The stay was lifted in February
2012. Mr. Helms was granted discharge from bankruptcy in April.
One year later, the Allens’ personal injury action was tried
before a jury, which rendered its verdict in April 2013. It found
that Mr. Helms was 57% negligent and Mrs. Allen, 43%
comparatively negligent. The jury’s total monetary award to Mrs.
and attorney’s fees incurred by her or him or on the
defendant’s behalf pursuant to a policy of liability
insurance or other contract from the date of filing of the
offer if the judgment is one of no liability or the judgment
obtained by the plaintiff is at least 25 percent less than
such offer, and the court shall set off such costs and
attorney’s fees against the award.
Florida Rule of Civil Procedure 1.442, entitled “Proposals for
Settlement,” “applies to all proposals for settlement authorized by
Florida law,” and provides the procedural mechanism for obtaining
the costs and fees to which a party would become entitled under
section 768.79. See Fla. R. Civ. P. 1.442(a), (h).
For our purposes in this opinion, consistent with the parties’
verbiage, we will interpose the rule’s phrase—“proposals for
settlement”—in the place of the statutory counterparts—“offer of
judgment and demand for judgment.”
3
Allen was $116,654.57. The jury did not, however, find that Mr.
Allen suffered any damages for loss of consortium. The Allens’
post-trial motions were denied.
Thereafter, on November 6, 2013, Mr. Helms’ bankruptcy
trustee filed and served his “Report and Notice of Trustee’s
Intention to Sell Property of the Estate.” According to the trial
court, the Notice advised “all interested parties of the trustee’s
intent to sell whatever right, title and interest [Mr. Helms’]
bankruptcy estate may have in the proposals for settlement to [the
Allens] . . . for the sum of $3500.” GEICO was not served with the
Notice. On December 3, 2013, the trustee filed his Report of Sale
of Property of the Estate in which he confirmed the sale of the
proposals for settlement to the Allens.
On December 31, 2013, Mr. Helms filed Defendant’s Motion
for Costs and Fees. The motion specified that Helms, “for the use
and benefit of his liability insurer, GEICO General Insurance
Company,” sought entry of an order that “he or GEICO or both”
were entitled to recover costs and attorney’s fees from the Allens
pursuant to section 768.79 and rule 1.442. On the same date,
having learned of the “sale” of the proposals for settlement to the
Allens, GEICO moved to intervene in the proceedings.
In March 2014, Mr. Helms sought entry of a final judgment.
On June 2, following a hearing, the trial court granted GEICO’s
motion to intervene. GEICO then filed its own motion for costs and
fees, arguing that “[Helms] ha[d] neither incurred nor paid
litigation costs and attorneys’ fees in his own defense,” but that all
costs and fees had been paid by GEICO. Its motion was based on
the rejected proposals for settlement and the fact that the net
judgment recovered by the Allens—allowing for set-offs for
comparative negligence and taxable costs—was at least 25% less
than the proposals for settlement.
The Allens objected to an award of fees and costs on the
grounds that the proposals for settlement were effectively a “cause
of action” traditionally considered property of a bankrupt’s estate. 3
3 According to Slater v. United States Steel Corp., 871 F.3d
1174 (11th Cir. 2017):
4
Since they had purchased that property from Helms’ bankruptcy
trustee, they believed that they were the rightful owners of the
proposals. On June 20, 2014, the Allens filed a notice that they
were withdrawing the proposals for settlement in an effort to
defeat Mr. Helms and GEICO’s claim of entitlement to collect
attorneys’ fees and costs. The trial court rejected the Allens’ claim
in its Order on Motion for Costs and Fees. 4 Instead, it found that
“[t]he jury award, after deduction for set-offs and apportionment
of liability, is less than 75% of the amount offered in the proposals
“Chapter 7 allows a debtor to make a clean break
from his financial past, but at a steep price: prompt
liquidation of the debtor’s assets.” Harris v. Viegelahn, —
U.S.—, 135 S. Ct. 1829, 1835, 191 L. Ed. 2d 783 (2015).
When a debtor files a Chapter 7 petition, his assets,
subject to certain exemptions, are immediately
transferred to a bankruptcy estate. 11 U.S.C. § 541(a)(1).
The Chapter 7 trustee is responsible for selling the
property in the estate and distributing the proceeds to
creditors. Id. §§ 704(a)(1), 726. Although a Chapter 7
debtor “must forfeit virtually all his prepetition property,”
the bankruptcy laws give the debtor an immediate fresh
start and a break from the financial past “by shielding
from creditors his postpetition earnings and
acquisitions.” Harris, 135 S. Ct. at 1835. . . .
Id. at 1179 (emphasis added) (footnote omitted).
4 In a footnote, the trial court recounted the chronology of
events leading up to this point, reiterating that the proposals for
settlement had not been listed as assets of the bankruptcy estate
and the “verdict triggering sanctions under the proposal for
settlement rule had been rendered.” As viewed by the court, “the
only logical conclusion is that [the Allens], or more likely their
attorney, concocted a ‘sale’ of the proposals through the
bankruptcy proceeding and approached the trustee with this
proposition in an attempt to avoid a significant fee award against
them.” The trial court considered that likelihood to be “deeply
troubling.”
5
for settlement, thus triggering the sanctions contemplated by Rule
1.442 and section 768.79, Florida Statutes.”
Analysis
We begin our analysis by first addressing the Allens’
argument that the trial court lacked subject matter jurisdiction to
determine that the bankruptcy trustee’s sale of the two proposals
for settlement was invalid. We will then speak to the merits of the
trial court’s ruling.
I. Subject Matter Jurisdiction
The Allens contend that the trial court lacked the subject
matter jurisdiction to, and invaded the province of the bankruptcy
court by, determining that the trustee’s sale of the proposals for
settlement was invalid. That contention reveals not only a
misunderstanding of the substance of the trial court’s decision, but
of the nature of subject matter jurisdiction.
“[S]ubject-matter jurisdiction concerns the power of the trial
court to deal with a class of cases to which a particular case
belongs.” Cunningham v. Standard Guar. Ins. Co., 630 So. 2d 179,
181 (Fla. 1994) (emphasis added) (citing Lovett v. Lovett, 112 So.
768 (Fla. 1927)). In Cunningham, the supreme court elaborated
upon this fundamental maxim:
“‘Jurisdiction,’ in the strict meaning of the term, as
applied to judicial officers and tribunals, means no more
than the power lawfully existing to hear and determine a
cause. It is the power lawfully conferred to deal with the
general subject involved in the action. It does not depend
upon the ultimate existence of a good cause of action in
the plaintiff, in the particular case before the court. ‘It is
the power to adjudge concerning the general question
involved, and is not dependent upon the state of facts
which may appear in a particular case.’ . . .”
Id. (citation omitted) (quoting Malone v. Meres, 109 So. 677, 683
(Fla. 1926)); see also Paulucci v. Gen. Dynamics Corp., 842 So. 2d
797, 801 n.3 (Fla. 2003); Viverette v. State, Dep’t of Transp., 227 So.
3d 1274, 1278 (Fla. 1st DCA 2017). “Stated differently, a challenge
6
to subject matter jurisdiction is proper only when the court lacks
authority to hear a class of cases, rather than when it simply lacks
authority to grant the relief requested in a particular case.” In re
Adoption of D.P.P., 158 So. 3d 633, 636-37 (Fla. 5th DCA 2014)
(citing Cunningham, 630 So. 2d at 181). Thus, in D.P.P., the Fifth
District concluded that “the court had subject matter jurisdiction
as it is without question that the circuit courts have exclusive
jurisdiction over all adoption matters” by virtue of section
63.102(1), Florida Statutes. Id. at 637.
Just as the trial court in D.P.P. had the power conferred upon
it by statute to hear the class of cases involving adoption, here, too,
the trial court unquestionably had the subject matter jurisdiction
to rule on the statutory—and rule-based—motion for attorney’s
fees and costs. Rather, what the Allens mistake for lack of subject
matter jurisdiction is actually the inability of a trial court to grant
relief in a particular case over which it has subject matter
jurisdiction. The decision in Tobkin v. State, 777 So. 2d 1160 (Fla.
4th DCA 2001), illustrates this point.
In Tobkin, the parties to an action for an injunction for
protection against domestic violence and a subsequently filed
dissolution of marriage action, reconciled, and the wife filed
voluntary dismissals in both actions. Notwithstanding the
dismissal of those cases, the trial court went on to rule on the wife’s
attorney’s motion to withdraw and the husband’s motion to
disqualify the wife’s counsel, and it also enforced its previously
ordered requirement that the husband attend counseling and a
batterers’ intervention program. In response, the parties jointly
filed a petition for writ of prohibition in the Fourth District seeking
to prevent the trial judge from continuing to exercise jurisdiction
in the two cases. In considering the issue, the Fourth District
determined:
The jurisdictional issue here is not one of subject
matter jurisdiction, which the court clearly has. Rather,
the issue is whether the trial judge, after the voluntary
dismissal in this case, still has the power to preside over
this particular dispute between the parties. This court
noted in T.D. v. K.D., 747 So. 2d 456, 457 n.2 (Fla. 4th
DCA 1999), that the word “jurisdiction” ordinarily refers
7
to “subject matter” or “personal” jurisdiction, but there is
a third meaning (“case” jurisdiction) which involves the
power of the court over a particular case that is within its
subject matter jurisdiction. “Case” jurisdiction is involved
here because the trial court clearly has jurisdiction over
the subject matter. . . .
Id. at 1163 (footnote omitted). Applying this distinction, the Fourth
District held that the wife’s valid motions to voluntarily dismiss
the dissolution proceedings and the domestic violence injunction
action divested the trial court of “case jurisdiction” to continue to
act in the cases. Id. See also Ricci v. Ventures Tr. 2013-I-H-R by
MCM Capital Partners, LLC, 276 So. 3d 5, 8 (Fla. 4th DCA 2019)
(observing that “‘[c]ase jurisdiction’ refers to ‘the power of the court
over a particular case that is within its subject matter
jurisdiction,’” quoting Trerice v. Trerice, 250 So. 3d 695, 698 (Fla.
4th DCA 2018)); 14302 Marina San Pablo Place SPE, LLC v. VCP-
San Pablo, Ltd., 92 So. 3d 320, 321 (Fla. 1st DCA 2012) (Ray, J.,
concurring) (footnotes omitted) (“The type of jurisdiction the court
lacked was its ‘power . . . over a particular case that is within its
subject matter jurisdiction,’ as determined by reference to the
case’s procedural posture. See T.D. v. K.D., 747 So. 2d 456, 457 n.2
(Fla. 4th DCA 1999). This species of jurisdiction is termed ‘case
jurisdiction’ or ‘continuing jurisdiction’ by some courts. It has also
been referred to as ‘procedural jurisdiction,’ meaning a court’s
authority to act in a particular case.”).
Here, the Allens assert that subject matter jurisdiction in
bankruptcy matters lies exclusively with the federal bankruptcy
court. They therefore urge that, to the extent the trial court held
the trustee’s sale of the proposals for settlement was invalid, it
invaded the province of the bankruptcy court because it did not
possess the subject matter jurisdiction to nullify the decision of the
bankruptcy trustee. We agree with the Allens that had the trial
court attempted to void the bankruptcy trustee’s sale of the
proposals for settlement, it would have lacked the subject matter
jurisdiction to do so. Indeed, the trial court candidly acknowledged
that the question of whether a debtor’s interest constitutes the
property of a bankruptcy estate is strictly a federal question. See
Butner v. United States, 440 U.S. 48 (1979); In re Kalter, 292 F.3d
1350 (11th Cir. 2002).
8
But the trial court did not reach beyond its subject matter
jurisdiction. Instead, the real issue underlying the Allens’
jurisdictional argument is whether the trial court possessed “case
jurisdiction” to consider the validity of the Allens’ withdrawal of
the proposals for settlement. To evaluate the propriety of the
withdrawal, the trial court—necessarily—had to turn to federal
law to glean a working definition of a “bankruptcy estate,” as it
was an issue inherent in the question of what actually passed to
the Allens from the bankruptcy trustee. However, federal law
aside, the extent of Mr. Helms’ rights in the proposals for
settlement at the commencement of the bankruptcy case “is an
issue of Florida law.” In re Raborn, 470 F.3d 1319, 1323 (11th Cir.
2006). Accordingly, the trial court possessed not only subject
matter jurisdiction, but case jurisdiction as well.
II. The Merits
With the issue of jurisdiction resolved, we next turn our
attention to thornier topics addressed in the trial court’s order.
As noted above, the point of the trial court’s wading into
federal bankruptcy law was to discern exactly what interest in the
proposals for settlement passed to the Allens by virtue of the
trustee’s sale. “An ‘elementary rule of bankruptcy . . . is that the
[bankruptcy] trustee succeeds only to the title and rights in the
property that the debtor possessed.’” In re Raborn, 470 F.3d at
1323 (quoting S. Cent. Livestock Dealers, Inc. v. Sec. State Bank,
614 F.2d 1056, 1061 (5th Cir. 1980)). The United States
Bankruptcy Code provides that
“[p]roperty in which the debtor holds, as of the
commencement of the case, only legal title and not an
equitable interest . . . becomes property of the estate . . .
only to the extent of the debtor’s legal title to such
property, but not to the extent of any equitable interest
in such property that the debtor does not hold.”
11 U.S.C. § 541(d) (2019) (emphasis added). Consistent with these
authorities, the trial court concluded that “it is evident that the
defendant’s Chapter 7 trustee acquired no greater right to the
proposals for settlement than that held by the defendant, and the
nature and extent of that right is determined by Florida law.” To
9
underscore this point, the court quoted the trustee’s own words in
his report and notice: The trustee sold to the Allens “‘whatever
right, title and interest the bankruptcy estate of Joseph K. Helms
may have in the Proposals for Settlement.’” (Emphasis added.) The
emphasized language indelibly left open—under Florida law—the
question of what right, title, or interest Mr. Helms possessed in the
proposals for settlement that passed to the Allens. Conceivably,
the bankruptcy trust received a $3500 windfall, and the Allens
received nothing for their money. In that regard, we again turn to
Raborn to shed further light on the matter. As the Eleventh Circuit
explained:
In this case, the Bankruptcy Trustee could not
succeed to rights or title to the real estate that Douglas
Raborn, the debtor, did not possess. If Douglas Raborn
possessed only legal title to the property as Trustee of the
trust (and not as holder of both legal and equitable title
in his individual capacity), the Bankruptcy Trustee could
neither succeed to nor have any rights—“vested” or
“unvested”—in the fee simple title to the property. Thus,
a necessary threshold determination in this case is the
extent of Douglas Raborn’s rights in the pertinent
property at the commencement of the bankruptcy case
(24 August 2001), which is an issue of Florida law.
470 F.3d at 1323.
Thus, the trial court rightly evaluated the nature of Mr.
Helms’ potential legal title and equitable interest in the proposals
for settlement under Florida law as the threshold question, and
then correctly narrowed its focus to the law of subrogation. To that
extent, we quote directly from the trial court’s order:
As a general proposition, after payment of a loss
incurred by or on behalf of an insured, an insurance
company is, by operation of law, without necessity for
express policy provisions or formal assignment by the
insured, entitled to be subrogated to any right the insured
may have against a third-party. Couch v. Drew, 554 So.
2d 1185 (Fla. 1st DCA 1989); Hough v. Huffman, 555 So.
2d 942 (Fla. 5th DCA 1990). This right of subrogation
includes rights against its own insured, if the insured
10
were to recover and attempt to keep costs and expenses
awarded. Aspen v. Bayless, 564 So. 2d 1081 (Fla. 1990).
An insurer which defends its insured and pays costs and
expenses of a lawsuit is subrogated to the extent of those
payments. [Id.] at 1082; Robertson v. Cobb, 695 So. 2d 507
(Fla. 5th DCA 1997).
Accordingly, “the insurance carrier . . . is ‘the real party in
interest’” to recover fees under section 768.79 “because it controls
the defense’s litigation strategy and holds the purse strings.”
Sparks v. Barnes, 755 So. 2d 718, 720 (Fla. 2d DCA 1999) (Whatley,
J., concurring). Hough stated it this way:
Insurance is a business “adventure.” It “is not
founded on any philanthropic or charitable principle.”
State ex rel. Landis v. Dewitt C. Jones Co., 108 Fla. 613,
147 So. 230 (1933). After an insurance company has paid
a loss on behalf of its insured, it is entitled to subrogation
either by express contract rights, or by equitable
subrogation by operation of law. 31 Fla. Jur. 2d Insurance
§ 149; 12 Fla. Jur. 2d Contribution, etc. §§ 18 and 20. This
right of subrogation would include rights against its own
insured, if the insured were to recover and attempt to
keep costs and expenses awarded in this case. See
International Sales-Rentals Leasing Co. v. Nearhoof, 263
So. 2d 569 (Fla. 1972).
555 So. 2d at 944-45 (emphasis added); see also In re Rush, 582
B.R. 729, 734 (Bankr. E.D. Tenn. 2018) (internal quotation marks
omitted) (citations omitted) (agreeing with the majority of
bankruptcy courts and holding that pre-petition child support
arrearages do not become property of the custodial parent’s
Chapter 7 bankruptcy estate, since the child support payments
paid to the custodial parent “are intended for the benefit of the
child”); In re Christakos, 553 B.R. 371, 380 (Bankr. W.D. Mo. 2016)
(“[U]nder Missouri law, child support is paid to the custodial
parent ‘in trust’ for the benefit of the child. As a result, the Debtor’s
postpetition child support is not property of the estate under §
541(a).”).
11
The emphasized language from Hough neatly dovetails with
the trial court’s more general observations on assignments. As the
court stated:
[I]t is black letter law that an assignment transfers to the
assignee only the interest and rights of the assignor in
and to the thing assigned, and the assignee stands in the
shoes of the assignor. Prescription Partners, LLC v. State,
[Dep’t of Fin. Servs.], 109 So. 3d 1218 (Fla. 1st DCA 2013).
The court continued: “An assignment conveys no greater right
than the assignor had at the time of the assignment. Union
Indemnity Co. v. City of New Smyrna, 130 So. 453 (Fla. 1930).”
Unifying the foregoing authorities, the trial court reached the
denouement of its decision:
It is clear, therefore, that GEICO is subrogated to
any right [Mr. Helms] has to recover from [the Allens] the
litigation costs and attorneys[’] fees incurred in the
defense of the defendant in the Action. . . . GEICO is the
real party in interest as to the proposals for settlement.
Thus, under Florida law, while the defendant is
nominally the “owner” of the proposals, the defendant has
only bare legal title in interest, and GEICO is both the
equitable owner of, and the true party in interest in, the
proposals for settlement. . . . [T]he plaintiffs stand in the
shoes of the defendant as against GEICO, and have no
greater interest in the proposals for settlement than did
the defendant.
The Court concludes that under Florida law, the
plaintiffs, standing in the shoes of the defendant, have
only bare legal interest in the proposals for settlement
which cannot defeat, and is subordinate to, GEICO’s
interest as both the true party in interest and as the
holder of an equitable subrogation claim. . . .
In short, as the trial court observed, for their $3500 the Allens
“acquired, at most, only bare legal interest in the proposals”
subject to GEICO’s equitable interest, “and at worst obtained
12
nothing.” 5 It therefore follows that the Allens, having failed to
possess the equitable interest in the proposals for settlement, did
not have the power to withdraw them.
That conclusion leads us to advance another, more
elementary, reason why the Allens could not have withdrawn the
proposals for settlement. Proposals for settlement not accepted
within thirty days are deemed rejected under Florida Rule of Civil
Procedure 1.442(f)(1). Section 768.79(5), Florida Statutes,
succinctly states: “An offer may be withdrawn in writing which is
served before the date a written acceptance is filed. Once
withdrawn, an offer is void.” Here, Mr. Helms’ proposals for
settlement “were open for the full 30 days and there was no written
revocation delivered [by Helms] before the 30 days expired.”
Crowley v. Sunny’s Plants, Inc., 710 So. 2d 219, 221 (Fla. 3d DCA
1998). Consequently—assuming that the Allens subsequently
“acquired” the proposals for settlement from the trustee—any
5 It is not our intention by this opinion to delve deeper into a
discussion concerning the broad definition of the term “property”
of a chapter 7 bankruptcy estate. But the distinction that may be
drawn between the instant case and those decisions that have
considered the propriety of including in a bankruptcy estate a pre-
petition cause of action belonging to the debtor is that in the latter
class of cases, the debtor is said to hold a property right in a cause
of action against the defendants at the time the bankruptcy case
was filed. See generally Segal v. Rochelle, 382 U.S. 375 (1965);
Parker v. Wendy’s Int’l, Inc., 365 F.3d 1268, 1272 (11th Cir. 2004)
(“Generally speaking, a pre-petition cause of action is the property
of the Chapter 7 bankruptcy estate, and only the trustee in
bankruptcy has standing to pursue it.”); see also In re Alipour, 252
B.R. 230 (Bankr. M.D. Fla. 2000); In re Tomaiolo, 205 B.R. 10
(Bankr. D. Mass. 1997). In the instant case, as explained elsewhere
in the body of this opinion, Mr. Helms held only legal title to the
proposals for settlement, not equitable title or a property right.
GEICO held equitable title to the recovery. And, as stated above,
under federal bankruptcy law, a bankruptcy trustee is only
authorized to conduct a valid sale of property in which the debtor
holds both a legal and equitable interest—with the nature of the
interest to be determined under state law.
13
purported withdrawal of the proposals by the Allens after the
expiration of the thirty-day period “was a legal nullity and an
event not contemplated” by either rule 1.442 or section 768.79. Id.;
see also Kaufman v. Smith, 693 So. 2d 133, 134 (Fla. 4th DCA 1997)
(“Plaintiff’s argument that the second offer [made by the
defendant] revoked the first offer overlooks the fact that the first
offer, once the plaintiff failed to accept it within the statutory time
period, was no longer merely an offer. Once that period expired the
defendant acquired a statutory right to recover attorney’s fees and
costs in the event the judgment was below a certain amount.
Plaintiff no longer had the ability to accept that offer, nor could she
have done anything unilaterally to make it ineffective.”).
Moreover, placing the text of section 768.79(5) in perspective,
the most reasonable interpretation of the withdrawal provision is
that the withdrawal of an offer must be made by the offeror. See
Wilcox v. Neville, 283 So. 3d 878, 882 (Fla. 1st DCA 2019)
(emphasis added) (recognizing that the statute “provides the
offeree with thirty days to accept an offer” and “allows the offeror
to withdraw the offer any time before a written acceptance,” citing
§ 768.79(1), (4), & (5), Fla. Stat., and Fla. R. Civ. P. 1.442(e), (f)(1)).
In the instant case, Mr. Helms was the offeror of the proposals for
settlement. It stands to reason, therefore, that only Mr. Helms had
the power to withdraw them. An interpretation that would permit
the offeree to withdraw the offeror’s proposal—in addition to being
nonsensical—would obstruct the statutory purpose of reducing
“‘litigation costs and conserv[ing] judicial resources by
encouraging the settlement of legal actions.’” Kuhajda v. Borden
Dairy Co. of Ala., LLC., 202 So. 3d 391, 395 (Fla. 2016) (citation
omitted). The interpretation we adopt, in contrast, endorses the
sound principle of statutory construction that “[a] textually
permissible interpretation that furthers rather than obstructs the
[text’s] purpose should be favored.” Antonin Scalia & Bryan A.
Garner, Reading Law: The Interpretation of Legal Texts 63 (2012).
Conclusion
Given the novel issues presented in this appeal, our goal was
to confine our decision to the unique facts of this case as influenced
by state law, and, to the extent appropriate, as refined by federal
14
bankruptcy law. For that reason, we hold that the trial court
properly declared the Allens’ Notice of Withdrawal of Proposals for
Settlement “to be a nullity and of no force and effect.” Further, the
court correctly granted Appellees’ motions for costs and fees as to
entitlement, leaving the amount to be determined by proper notice.
Accordingly, we wholly endorse the trial court’s parsing of the legal
issues and find its decision to be eminently correct.
AFFIRMED.
BILBREY and M.K. THOMAS, JJ., concur.
_____________________________
Not final until disposition of any timely and
authorized motion under Fla. R. App. P. 9.330 or
9.331.
_____________________________
Mitchel E. Woodlief of Woodlief & Rush, P.A., Jacksonville, for
Appellants.
J. Stephen O’Hara, Jr. and James D. Morgan of O’Hara Law Firm,
P.A., Jacksonville, for Appellees.
15