Wells Fargo Bank, N. A., as Trustee for Banc of America Funding v. Stephen L. Meininger, Chapter 7 Trustee of the Bankruptcy Estate Of
CourtDistrict Court of Appeal of Florida
Date FiledMay 10, 2023
Docket2D2021-1332
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
WELLS FARGO BANK, N.A., as trustee for
Banc of America Funding Corporation Mortgage
Pass-Through Certificates Series 2007-5,
Appellant,
v.
STEPHEN L. MEININGER, as Chapter 7 trustee of
the Bankruptcy Estate of Stay In My Home, P.A.
f/k/a Stopa Law Firm, P.A.,
Appellee.
No. 2D21-1332
May 10, 2023
Appeal from the Circuit Court for Pinellas County; Thomas Ramsberger,
Judge.
David Y. Rosenberg of Robertson, Anschutz, Schneid, Crane & Partners,
PLLC, Boca Raton, for Appellant.
Michael A. Friedman, Lisa M. Castellano, and Patrick Kalbac of Genovese
Joblove & Battista, P.A., Tampa, for Appellee.
SMITH, Judge.
Wells Fargo Bank, N.A., appeals the lower court's order awarding
prevailing party attorneys' fees to Stephen L. Meininger (Trustee), as
bankruptcy trustee of the Stopa Law Firm, P.A. (Stopa), for attorney
services performed by Stopa on behalf of a client in an underlying
foreclosure action. The trial court erred in awarding attorneys' fees. We
reverse based upon the complete absence of competent substantial
evidence.
The Trustee, on behalf of the Stopa bankruptcy estate, seeks to
recover attorneys' fees arising out of a case tried before Stopa's
bankruptcy filing, in which Stopa successfully defended a client at trial
against foreclosure. Prior to the bankruptcy, on January 15, 2018,
Stopa filed a motion to tax attorneys' fees in the foreclosure action
seeking $17,000.1 The motion set forth the hours of attorney time and
hourly rate charged.2 Stopa filed its bankruptcy petition on October 2,
2018. On March 4, 2020, the Trustee filed a Notice of Filing and
Asserting Charging Lien for the attorneys' fees in the foreclosure case.
Wells Fargo opposed the charging lien, arguing laches and waiver. After
hearings on the issue, the trial court determined that the Trustee had an
interest in the attorneys' fees to be awarded the client in the underlying
foreclosure action and that it was entitled to attorneys' fees. The trial
court scheduled an evidentiary hearing to determine the reasonableness
of the attorneys' fees sought.
At the April 6, 2021, evidentiary hearing, the Trustee's attorney fee
expert testified as to the lodestar factors under Florida Patient's
Compensation Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985), and the rules
1 Stopa filed bankruptcy following the suspension of its main
partner Mark Stopa. Mr. Stopa was later disbarred by the Florida Bar.
See Florida Bar v. Stopa, Nos. SC16-1727, SC17-1428 & SC18-1197,
2019 WL 4696047 (Fla. Sept. 26, 2019).
2 The motion was not verified or supported by an affidavit nor were
the time records or billing records attached to the motion.
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regulating the Florida Bar. The Trustee's fee expert had to reconstruct
the time for three Stopa attorneys who worked on the case based upon
the docket filings because the Trustee was unable to locate Stopa's
billings or time records. None of the three Stopa attorneys testified at the
hearing. Because of the inability to review the file, the fee expert could
not discern which attorneys attended hearings or prepared the filings.
Nor was the fee expert able to review the retainer agreement between
Stopa and the client. In fact, the fee expert did not know whether Stopa
had charged the client a flat or an hourly fee. The Trustee requested that
the trial court judicially notice Wells Fargo's attorneys' fee affidavit from
the underlying foreclosure case, which sought $17,000 in attorneys' fees
for approximately 80 hours of time at an hourly rate of $215 to 225 for
taking the case to trial. Wells Fargo's fee expert testified that 16.75
hours was a reasonable amount of time and that $300 per hour was a
reasonable rate for the work performed in the foreclosure action. On this
record, and over the objection of Wells Fargo, the trial court determined
that competent substantial evidence existed to support an award of
attorneys' fees to the Trustee in the amount of $17,000 based upon 42.5
hours at an hourly rate of $400.
"Fee awards must be supported by 'a predicate of substantial
competent evidence in the form of testimony by the attorney performing
services and by an expert as to the value of those services.' " Mitchell v.
Flatt, 344 So. 3d 588, 592 (Fla. 2d DCA 2022) (quoting Cooper v. Cooper,
406 So. 2d 1223, 1224 (Fla. 4th DCA 1981)); see also Pridgen v. Agoado,
901 So. 2d 961, 962 (Fla. 2d DCA 2005) (reversing fee award where the
record was "devoid of any expert testimony or even the testimony of the
attorney who performed the services").
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The Trustee cites to two cases in support of its position that the
evidence in this case, which consisted only of expert testimony and
included no testimony from the attorneys performing services or their
contemporaneous billing records, is sufficient to support a fee award.
We are not persuaded. In Glades, Inc. v. Glades Country Club
Apartments Ass'n, 534 So. 2d 723, 723 (Fla. 2d DCA 1988), this court
stated that "evidence sufficient to support a finding of the number of
hours reasonably expended by an attorney need not necessarily include
specific, written time records. " But in Glades, the attorney performing
the services testified to his hours expended and an expert testified as to
reasonableness. Id. at 724. And in Nants v. Griffin, 783 So. 2d 363, 366
(Fla. 5th DCA 2001), the court stated that "the attorney performing the
work is not required to testify when there is competent evidence filed in
support of the motion or introduced at the hearing detailing the services
performed." But in Nants, the attorney who performed the services,
before withdrawing from the case, submitted an affidavit and attached
timesheets and detailed billing statements that were authenticated as
business records by his supervising attorney, who also reviewed the
records and testified to reasonableness, as did an expert. Id. at 364,
366. Therefore, in each of the cases relied upon by the Trustee there was
some competent evidence as to the attorneys' services performed. Here,
we have nothing. See, e.g., Trumbull Ins. Co. v. Wolentarski, 2 So. 3d
1050, 1056 (Fla. 3d DCA 2009) (stating that expert's reconstruction of
attorney time based on "what he believed to be the amount of time
counsel must have spent on telephone conversations and other matters
not documented in his files" was "not fact based opinion" but "pure
speculation" and had "no factual support in the record and [was],
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therefore, of no evidentiary value whatsoever") (disapproved on other
grounds, Kopel v. Kopel, 229 So. 3d 812, 815-20 (Fla. 2017)).
Accordingly, in the complete absence of any competent evidence as
to the services performed by Stopa, it was error to award attorneys' fees
to the Trustee based solely upon the fee expert's testimony recreating
Stopa's records. In light of the reversal, we elect to not comment on the
remaining issues.
Reversed.
VILLANTI, J., concurs.
KELLY, J., concurs in results only.
Opinion subject to revision prior to official publication.
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