State Farm Automobile Insurance Company v. Athans Chiropractic Inc., A/A/O Micaela Falabella
CourtDistrict Court of Appeal of Florida
Date FiledOctober 7, 2022
Docket2D21-2028
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY,
Petitioner,
v.
ATHANS CHIROPRACTIC, INC.
a/a/o Micaela Falabella,
Respondent.
No. 2D21-1518 & 2D21-2028
CONSOLIDATED
October 7, 2022
Petition for Writ of Certiorari to the County Court for Hillsborough
County; James S. Moody, Judge.
Nancy W. Gregoire of Birnbaum, Lippman & Gregoire, PLLC, Fort
Lauderdale, and Marsha M. Moses of Kubicki Draper, P.A., Tampa,
for Petitioner.
Kelly A. Blum and Philip A. Friedman of FL Legal Group, Tampa, for
Respondent.
KELLY, Judge.
State Farm Mutual Automobile Insurance Company petitions
this court for a writ of certiorari to quash orders compelling it to
respond to discovery propounded by FL Legal Group, the law firm
representing Athans Chiropractic, Inc., in this action.1 While the
underlying lawsuit is one for breach of an automobile insurance
contract, after learning that Athans and State Farm had already
litigated and settled the claim in another lawsuit in which Athans
was represented by a different law firm, FL Legal shifted the focus of
Athans' lawsuit to a claim that FL Legal had a charging lien. FL
Legal argued State Farm had violated its "lien rights" by settling the
earlier litigation without protecting FL Legal's lien. FL Legal argued
it was entitled to pursue its "lien rights" in this breach of contract
lawsuit.
Because the lawsuit was for breach of an automobile
insurance contract, FL Legal's initial discovery requests sought to
compel State Farm to produce its claim and litigation files and
underwriting information pertaining to Athans' claim. But when FL
1 State Farm filed two petitions for writ of certiorari regarding
two separate discovery orders. The petitions involve the same
parties and discovery issues and were consolidated for purposes of
these proceedings.
2
Legal opted to pursue its claimed charging lien rather than Athans'
breach of contract claim, it added additional requests seeking
information about the earlier settlement between Athans and State
Farm. It claimed the challenged discovery was necessary to
"ascertain on the record whether or not there is a [charging] lien
violation." State Farm objected on several grounds including that
the requested materials are protected by attorney-client and work
product privileges, that the requested discovery was not relevant or
likely to lead to admissible evidence because FL Legal had no lien
rights, and that FL Legal was not a party to the action and was
therefore not entitled to conduct discovery. The trial court allowed
the discovery to go forward reasoning it needed more information
about FL Legal's purported lien.
"[C]ertiorari is appropriate when a discovery order departs
from the essential requirements of law, causing material injury"
which cannot be remedied on plenary appeal. Allstate Ins. Co. v.
Langston, 655 So. 2d 91, 94 (Fla. 1995); see also Parkway Bank v.
Fort Myers Armature Works, Inc., 658 So. 2d 646, 649 (Fla. 2d DCA
1995). "Discovery in civil cases must be relevant to the subject
matter of the case and must be admissible or reasonably calculated
3
to lead to admissible evidence." Langston, 655 So. 2d at 94 (citing
Brooks v. Owens, 97 So. 2d 693, 699 (Fla. 1957)). While certiorari
is not an appropriate remedy merely because a discovery order
requires the production of irrelevant material, "a litigant is [not]
entitled carte blanche to irrelevant discovery." Id. at 95. An order
that entitles a party to carte blanche discovery of irrelevant material
demonstrates the type of irreparable harm that may be remedied via
petition for writ of certiorari. See id.; Root v. Balfour Beatty Constr.
LLC, 132 So. 3d 867, 869 (Fla. 2d DCA 2014). Because the orders
here entitle FL Legal to discovery where the record affirmatively
shows no basis for the imposition of a charging lien, we conclude
that State Farm has appropriately invoked our certiorari
jurisdiction. See Langston, 655 So. 2d at 95 (quashing the Fourth
District's opinion to the extent it permitted discovery when it had
been affirmatively established that the discovery was neither
relevant nor would it lead to the discovery of relevant information);
Walther v. Ossinsky & Cathcart, P.A., 112 So. 3d 116, 118 (Fla. 5th
DCA 2013) (quashing a discovery order seeking the production of
apparently privileged documents to a law firm seeking the
imposition of a charging lien where there was no basis for the lien);
4
cf. Allstate Ins. Co. v. Am. S. Home Ins. Co., 680 So. 2d 1114, 1117-
18 (Fla. 1st DCA 1996) (granting certiorari and quashing an order
allowing discovery of petitioner's privileged documents where the
complaint failed to allege a cause of action entitling respondent to
the discovery).
"The charging lien is an equitable right to have costs and fees
due an attorney for services in the suit secured to him in the
judgment or recovery in that particular suit." Sinclair, Louis, Siegel,
Heath, Nussbaum & Zavertnik, P.A. v. Baucom, 428 So. 2d 1383,
1384 (Fla. 1983) (emphasis added). FL Legal did not appear in the
earlier suit—it was not even aware Athans had decided to use a
different law firm to pursue the claim. Thus, it did not provide any
services, nor did it secure a judgment or settlement in that suit. In
other words, the settlement in the earlier lawsuit was not the fruit
of FL Legal's labor, so there was nothing to which its purported lien
could attach. See id. at 1385 (recognizing that an attorney has a
right to be compensated for his labor and his lien attaches to the
fruits of this labor); Duhamel v. Fluke, 295 So. 3d 880, 883 (Fla. 2d
DCA 2020) ("The law clearly provides that a charging lien only
attaches to the 'fruits' flowing from the attorney's efforts."); Correa v.
5
Christensen, 780 So. 2d 220, 220 (Fla. 5th DCA 2001) ("It is not
enough to support the imposition of a charging lien that an attorney
has provided his services; the services must, in addition, produce a
positive judgment or settlement for the client, since the lien will
attach only to the tangible fruits of the services.").
Further, one of the requirements to perfect a charging lien is
timely notice.2 As this court explained in Greenberg Traurig, P.A. v.
Starling, 238 So. 3d 862, 865 (Fla. 2d DCA 2018), "[t]o perfect a
charging lien, the attorney must 'either file a notice of lien or
otherwise pursue the lien in the original action' before the case is
dismissed." (quoting Daniel Mones, P.A. v. Smith, 486 So. 2d 559,
561 (Fla. 1986)). FL Legal did neither.
FL Legal argues it has a charging lien by virtue of the fact it
sent a presuit demand letter to State Farm regarding the claim
Athans litigated in the earlier case. Among other things, the letter
asserted that FL Legal had "a continuous and ongoing lien with
2 There are four requirements to establish a valid charging
lien: "(1) an express or implied contract between attorney and client;
(2) an express or implied understanding for payment of attorney's
fees out of the recovery; (3) either an avoidance of payment or a
dispute as to the amount of fees; and (4) timely notice." Daniel
Mones, P.A. v. Smith, 486 So. 2d 559, 561 (Fla. 1986).
6
respect to any claims asserted in this demand letter." But FL Legal
did not file its demand in the original action, thus it did not timely
perfect its claimed lien. See Starling, 238 So. 3d at 865.
Citing Brown v. Vermont Mutual Insurance Co., 614 So. 2d 574
(Fla. 1st DCA 1993), and Heller, P.A. v. Held, 817 So. 2d 1023 (Fla.
4th DCA 2002), FL Legal argues that it is nevertheless entitled to
pursue its charging lien against State Farm because it was unaware
the earlier case was being litigated by a different law firm until after
it was dismissed, and that it was a fraud for State Farm, and
presumably Athans, to conduct that litigation without notifying FL
Legal that another law firm was pursuing the claim on Athans'
behalf. Unlike this case, however, the attorneys in Heller and
Brown had a basis to claim a charging lien—they had appeared in
the litigation and provided services for which they were owed a fee.3
Because the trial court ordered State Farm to participate in
discovery aimed at furthering FL Legal's pursuit of a charging lien
when the record shows no basis to impose a lien in its favor, we
3 Further, the attorneys in Heller and Brown had given timely
notice that they intended to pursue a charging lien. See Heller, 817
So. 2d at 1026; Brown, 614 So. 2d at 581.
7
grant State Farm's petitions for certiorari and quash the orders
compelling discovery. 4 See Walther, 112 So. 3d at 118.
Petitions granted; orders quashed.
LaROSE and ATKINSON, JJ., Concur.
Opinion subject to revision prior to official publication.
4 Because it is not necessary to the disposition of this case to
do so, we do not reach State Farm's arguments regarding privilege.
We note, however, that the trial court compounded its error in
allowing the challenged discovery by ordering the discovery of
materials claimed to be privileged without first conducting an in-
camera inspection. We have also refrained from addressing other
irregularities in the proceedings, but nothing should be read into
our silence other than it was unnecessary to reach those issues.
8