3d DCA Rules Florida's Proposal For Settlement Laws Conflict With Federal Maritime Law

On April 9, 2014, the Third District Court of Appeal of Florida issued an en banc opinion in Royal Caribbean Cruises, Ltd. v. Cox, Case No. 3D09-2712. The case put to rest decades of unrest and tension between the status of Florida's offer of settlement law as interpreted by the Third District and federal maritime law. The Third District finally aligned itself with its sister courts and Florida's federal courts in holding that Florida's offer of judgment laws conflict with federal maritime law and a prevailing party is not entitled to recover attorney's fees.

There is a protracted procedural history to this matter. The plaintiff, Mr. Bryon Cox, brought suit against Royal Caribbean in the underlying suit to recover for personal injuries sustained while employed aboard a Royal Caribbean vessel. Mr. Cox served an offer of judgment pursuant to Florida Statute §768.79 and Florida Rule of Civil Procedure 1.442. Royal Caribbean moved to strike the offer of judgment, arguing that §768.79 conflicted with federal maritime law. In response, Mr. Cox cited Royal Caribbean Corp. v. Modesto, 614 So. 2d 517 (Fla. 3d DCA 1992) (holding that Florida statute providing for confidentiality of mediation proceedings was not preempted by maritime law and finding "no conflict between Florida's rule of law regarding offers of judgment and federal maritime law."). The case proceeded to trial and the jury found in favor of Mr. Cox, who sought attorney's fees based on his offer of judgment. The trial court judge granted an award of $245,856.87 in attorney's fees pursuant to plaintiff's offer of judgment.

The original appeal was taken from the trial court's order, which the Third District affirmed, relying on the rationale enunciated in Modesto. Royal Caribbean moved for a rehearing en banc. The en banc panel consisted of Chief Judge Frank Shepherd and Judges Well, Suarez, Rothenberg, Lagoa, Salter, Emas, Fernandez, Logue and Scales. On rehearing, Royal Caribbean argued that the Third District should recede from the ruling in Modesto.

By way of background, and contrary to Modesto,several other state and federal courts have held that "under federal admiralty law, the prevailing party is not entitled to attorney's fees . . . even when a state statute establishes an entitlement to fees." See Nicoll v. Magical Cruise Co., 110 So. 2d 98, 98 (Fla. 5th DCA 2013) (citing Misener Marine Constr., Inc. v. Norfolk Dredging Co., 594 F.3d 832, 841 (11th Cir. 2010) (explaining that...