COHEN, J.
Orlando/Orange County Expressway Authority ("OOCEA") appeals a final judgment awarding attorney's fees in the amount of $816,000 in an eminent domain proceeding. The primary issue on appeal concerns the lower court's refusal to limit attorney's fees awarded to the landowners to those permitted by section 73.092(1), Florida Statutes (2006), based on a pre-suit offer made by OOCEA. Because the issue involves the public interest, three amicus briefs have been filed in this action.
OOCEA was involved in the construction of a project known as the John Land Apopka Expressway.
On June 5, 2006, OOCEA made a pre-suit written offer to the known fee owner, Doerr, to "purchase Parcel 406 for $4,914,221.00, subject to all apportionment claims." (Emphasis added). At the time of the offer, the property was occupied by Florida Container Services, Inc. ("Florida Container"), which leased the property on a month-to-month basis. In December 2005, Doerr had conveyed fifteen percent of the Trust's interest in the subject property to Ministry Systems, Inc. ("Ministry"); however, the transfer was not recorded until July 31, 2006. The offer was not accepted by Doerr, and OOCEA filed suit to condemn the property in August 2006.
All parties agreed to a stipulated order of taking, which granted OOCEA immediate possession of the property but allowed Florida Container to remain on the property through January 5, 2007, provided certain conditions were met. Doerr and Ministry (collectively "Landowners"), the Appellees herein, filed a motion to withdraw the funds deposited by OOCEA. Their motion was uncontested and
Florida Container separately pursued its claims against OOCEA. Its claim was settled at mediation, and a stipulated final judgment entered on March 22, 2007, required OOCEA to pay the tenant $45,000, which was reported to represent compensation for any and all of the company's claims.
Landowners' stipulated order of taking did not resolve the value of Parcel 406. In July 2007, OOCEA apparently made a collective offer of judgment to Landowners in the amount of $5,500,000.
Landowners were represented by the law firm of Fixel, Maguire & Willis ("FMW"). Both clients had virtually identical fee agreements with FMW that recognized the firm would be paid "statutorily calculated Attorney's fees" by the condemning authority, plus a bonus of two percent of the award by Landowners if the award exceeded $5 million. The two-percent bonus, which totaled $117,861, was paid to FMW from the proceeds of the final payment made to Landowners. Following entry of the verdict, Landowners filed a separate motion to recover their "statutory" fees and/or any fees permitted by article X, section 6, of the Florida Constitution.
OOCEA sought to limit attorney's fees to those permitted by section 73.092(1), Florida Statutes (2006), which requires the court to award fees "solely on the benefits achieved for the client." Id. (emphasis added). Landowners argued they were entitled to the more generous "reasonable" attorney's fees allowed by section 73.092(2), and/or the Florida Constitution. The issue was brought before the court on a motion filed by Landowners to preclude application of section 73.092(1). The trial court ultimately agreed with Landowners that section 73.092(1) could not be used to award fees in this case, but that fees should be awarded pursuant to the "reasonable fee" provision of section 73.092(2), using the factors set forth in the statute. As part of its ruling, the court rejected OOCEA's argument that Landowners had waived the right to challenge an award of fees under the "benefits achieved" provisions of section 73.092(1). It further found that FMW's fee agreement, which obligated the firm to accept "statutory" fees, did not limit it to fees pursuant to section 73.092(1). OOCEA's argument that the separate bonus already paid to FMW must be deducted from any fee award was mooted by FMW's agreement to return the bonus to its clients. Because section 73.092(1) was found inapplicable, the trial judge did not reach Landowners' argument that application of the statute would be unconstitutional under the facts and circumstances existing in this case.
OOCEA has now appealed the fees awarded to Landowners for the "valuation" portion of the proceedings.
Subsection (1) of section 73.092 must be compared with subsection (2) of the same statute, which applies to "attorney's fees incurred in defeating an order of taking, or for apportionment, or other supplemental proceedings, when not otherwise provided for. . . ." § 73.092(2), Fla. Stat. The subsection instructs the court that, with respect to these fees, the court is to consider a list of factors in making the award, which appear to be directed at producing a "reasonable fee." The factors to be considered include: (1) the novelty, difficulty, and importance of the questions involved; (2) the skill employed by the attorney in conducting the cause; (3) the amount of money involved; (4) the responsibility incurred and fulfilled by the attorney; (5) the attorney's time and labor reasonably required adequately to represent the client in relation to the benefits resulting to the client; (6) the fee, or rate of fee, customarily charged for legal services of a comparable or similar nature; and (7) any attorney's fee award made under subsection (1). § 73.092(2)(a)-(g), Fla. Stat.
Read together, these subsections appear to contemplate two forms of fees awards in condemnation cases. Attorney's fees for valuation proceedings are to be awarded using the "benefits achieved" formula of subsection (1), while "reasonable fees" are available under subsection (2) for fees incurred in supplemental proceedings, such as apportionment proceedings between landowners. The statute nonetheless appears to contain a "gap." See Sarasota Cnty. v. Curry, 861 So.2d 1239 (Fla. 2d
§ 73.092(1)(a), Fla. Stat. (emphasis added). Moreover, section 73.092(2) is limited by its terms to fees incurred "in defeating an order of taking and in supplemental proceedings, when fees are not otherwise provided for." The gap occurs with respect to fees incurred in valuation proceedings, when no written offer is made. Curry, 861 So.2d at 1242 (explaining "section 73.092 contains a `gap' by failing to provide a method for calculating attorney's fees in cases in which the benefits analysis is not applicable and the proceeding is not a supplemental one."); Smithbilt, 715 So.2d at 966 (stating "the statute contains a gap because it contains no method to establish fees in the event that the condemning authority makes no written offer and the proceeding is not supplemental in nature."). As to these cases, courts have determined that fees should be awarded pursuant to subsection (2), even though the statute does not appear to apply by its terms. See, e.g., Curry, 861 So.2d at 1242.
The dispute in this case over the application of section 73.092(1) centers on whether a valid written offer was made to Landowners, so as to permit the lower court to ascertain the "benefits achieved" by Landowners under section 73.092(1), when measured against the final verdict of $5,744,830. OOCEA, of course, argues that a valid written offer was made. It primarily relies on a pre-suit written offer it made to Doerr on June 5, 2006, to "purchase Parcel 406 for $4,914,221.00, subject to all apportionment claims." The trial court struck the offer for purposes of the statute, finding it "insufficiently certain and/or definite," and accepted Landowners' argument that the offer was insufficient to permit the court to calculate the "benefits achieved" by each defendant in the final judgment, so as to permit a fee award under section 73.092(1). The lower court found that Landowners were entitled to an award of reasonable attorney's fees pursuant to section 73.092(2).
OOCEA argues in this appeal that the only "written offer" required by section 73.092(1) is a written offer to Landowners for the entire fee, and that the statute cannot be construed to require it to separately state the interests of each individual condemnee, as this conflicts with the pre-suit offer requirements imposed on condemning authorities by section 73.015, Florida Statutes (2006). OOCEA theorizes that the pre-suit written offer made to Doerr on June 5, 2006, to "purchase Parcel 406 for $4,914,221.00, subject to all apportionment claims," constituted a written offer for purposes of section 73.092(1), that simply made clear the offer was intended
Landowners agree that the offer in this case was a "unified" offer for the entire fee, despite the limiting language that it was subject to apportionment. As such, Landowners contend that the offer did not meet the requirements of section 73.015, which requires the condemning authority to "provide a written offer of compensation to the fee owner as to the value of the property sought to be appropriated . . . ." § 73.015(1)(b), Fla. Stat. In opposition to Florida's "unity rule," Landowners insist that the offer required by section 73.015(1)(b) is an offer for the value of the fee owner's interest, exclusive of the leasehold or other interests of third parties in the fee. Regardless, they contend that the offer that was made cannot be used as the basis of a "benefits achieved" fee award under section 73.092(1). They insist that because of the failure to specify a dollar amount for the Landowners' interests, as distinguishable from those of Florida Container, the "benefits achieved" by Landowners in the valuation proceedings cannot be calculated, precluding a fee award pursuant to section 73.092(1).
We reject the argument that section 73.015, the pre-suit offer statute, contemplates a separate offer to a fee owner for the value of his or her property excluding other interests. A lessee is plainly an "owner" of property protected by the constitutional guarantee in article X, section 6(a) of the Florida Constitution against the taking of private property without just compensation. Trump Enters., Inc. v. Publix Supermkts., Inc., 682 So.2d 168, 169 (Fla. 4th DCA 1996). However, Florida follows the "unity rule" or "undivided fee rule." Fla. Dep't of Transp. v. Powell, 721 So.2d 795, 797 n. 2 (Fla. 1st DCA 1998); Div. of Admin., Fla. Dep't of Transp. v. Allen, 447 So.2d 1383, 1385-86 (Fla. 5th DCA 1984). The rule requires the jury in an eminent domain proceeding to value the property as a whole, irrespective of the interests held in the parcel. The trial court then determines in a summary, supplemental proceeding the portion to be awarded to all interested parties, including lessees. Allen, 447 So.2d at 1385-86; accord Porter v. Columbia Cnty., 75 So.2d 699 (Fla.1954); see also Carter v. State Rd. Dep't, 189 So.2d 793, 794 n. 1 (Fla.1966) (stating a leasehold is encompassed within property being appropriated and must be included in valuing the property as a whole).
Section 73.015 was added to the eminent domain statutes in 1999 as part of a legislative overhaul of the eminent domain process and appears to be consistent with the unity rule. See Ch. 99-385, § 57, at 56, Laws of Fla. (effective Jan. 1, 2000). It requires the condemning authority to "negotiate in good faith with the fee owner of the parcel to be acquired," and to make an "attempt to reach an agreement concerning the amount of compensation to be paid for the parcel." § 73.015(1), Fla. Stat. (emphasis added). Among other things, it requires the condemning authority to "provide a written offer of compensation to the fee owner as to the value of the property sought to be appropriated." § 73.015(1)(b), Fla. Stat. (emphasis added). This is consistent with section 73.071, which requires the jury during the "compensation" portion of the proceedings to determine, among other things, the "value of the property sought to be appropriated." § 73.071(3)(a), Fla. Stat.
The pre-suit offer made to Doerr was, in fact, a unified offer which included the value of the entire fee.
Despite the unified offer made in this case, we reject Landowners' argument that OOCEA's pre-suit offer does not permit an award of fees based on the "benefits achieved" by Landowners, as required by section 73.092(1). The statute initially defines "benefits" to mean "the difference, exclusive of interest, between the final judgment or settlement and the last written offer made by the condemning authority before the defendant hires an attorney." § 73.092(1)(a), Fla. Stat. The obvious purpose of the statute is to compute the financial benefits achieved by a condemnee in going to trial, as calculated by subtracting an early written offer made by the condemning authority from the amount ultimately awarded by the jury or accepted in settlement by the condemnee. Fees are to be calculated against this amount.
We specifically reject the argument that making the written offer "subject to apportionment" rendered it too indefinite for use in determining the benefits achieved by Landowners. The "subject to apportionment" language was obviously included in an attempt to limit the condemning authority's liability.
The lack of any apportionment issues clearly distinguishes this case from Curry. There, the court considered an award of fees in an eminent domain proceeding, where a collective offer of judgment of $30,025 had been made to three landowners who owned a single parcel of land. The offer was made six years after suit had been brought. It was accepted by the landowners and final judgment was entered in accordance with the offer. The court accepted the county's contention that the offer of judgment constituted a "written offer" for purposes of section 73.092(1), but nevertheless found that fees could not be awarded to Curry, one of the landowners, under the subsection. The court concluded that it was impossible to determine how much of the joint offer of judgment was attributable to his interest, and it was therefore impossible to determine the "benefits achieved" from his final settlement, which resulted in a payment to him of $7,666.67. The Curry court went on to hold that under the circumstances of the case, fees should be awarded pursuant to section 73.092(2), despite recognition that "[a] plain language reading of that subsection suggests that it would be inapplicable in this case because the underlying action was not a `supplemental proceeding.'" 861 So.2d at 1242. The court nonetheless felt that application of subsection (2) was necessary in "gap" proceedings "to give effect to the legislature's intent that the landowner receive attorney's fees under section 73.092 based on the landowners' constitutional right to full compensation in eminent domain proceedings." Id.
The problem outlined in Curry does not exist in this case, because only Landowners went to trial, each landowner's interest was readily discernible, and both were represented by the same attorneys so there was no need to allocate fees. We do note, however, that the offer of judgment cases, statutes and rules cited by the parties, and seemingly relied upon in Curry, are, for the most part, inapposite, not only because the statutes have changed, but because they involve different considerations.
We believe that our construction of section 73.092(1) gives maximum effect to the legislature's intent to limit fees during the valuation portion of the condemnation proceedings to those derived in achieving benefits on behalf of a landowner. This is our polestar in statutory construction. Larimore v. State, 2 So.3d 101, 106 (Fla. 2008) (stating that court's purpose in construing a statute is to give effect to legislative intent). We also recognize that attorney's fees statutes must be strictly construed. Willis Shaw Express, Inc. v. Hilyer Sod, Inc., 849 So.2d 276, 278 (Fla. 2003). However, the principle is inapplicable in this case, where fees are not awardable against Landowners, but are payable by the authority as part of a condemnee's constitutional right to full compensation. See Tosohatchee Game Pres., Inc. v. Cent. & S. Fla. Flood Control Dist., 265 So.2d 681, 683 (Fla.1972) (attorney's fees are part of constitutional right to full compensation).
Because we agree with OOCEA that Landowners' attorney's fees are limited in this case to those permitted by section 73.092(1), we remand for further consideration of Landowners' argument that applying section 73.092(1) to limit the fees sought in this case denies them their constitutional right to full compensation, because the condemning authority caused
Finally, our resolution of the issues raised in this case makes it unnecessary for us to consider OOCEA's argument that the fees awarded to FMW improperly exceeded those agreed to by FMW and Landowners. The fees found to be due here are those which OOCEA argued were payable under the fee agreements.
REVERSED and REMANDED.
EVANDER and JACOBUS, JJ., concur.