WINGATE v. CELEBRITY CRUISES, LTD. No. 3D11-400.
79 So.3d 180 (2012)
Jerrold WINGATE and the Wingate Law Firm, Appellants, v. CELEBRITY CRUISES, LTD., Appellee.
District Court of Appeal of Florida, Third District.
February 8, 2012.
Mase Lara Aversole, and Curtis J. Mase, Andrew D. Craven, Richard D. Lara, Miami, and Valentina M. Tejera, for appellee.
Before SALTER, EMAS and FERNANDEZ, JJ.
Jerrold K. Wingate and the Wingate Law Firm (hereinafter collectively referred to as "Wingate") appeal an order denying their motion for disbursement of costs incurred during their representation of several of the seventy-seven plaintiffs in cases against Celebrity Cruises, Ltd. and Royal Caribbean Cruises, Ltd. ("RCL").
In 2007, plaintiff Charles Mackarthy, represented by Wingate, filed suit against RCL. On January 8, 2008, RCL filed a motion to disqualify Wingate as counsel for Mackarthy, alleging Wingate had been paying an RCL employee to provide insider information on the cruise line's claims files. At the time this motion to disqualify was filed, Wingate also represented seventy-six other plaintiffs in separate lawsuits against RCL.
Attached to the motion to disqualify was an affidavit from the RCL employee, who verified she had received payments from Wingate in exchange for providing settlement authority information from RCL's files, including the settlement value which RCL assigned to those claims and the maximum amount RCL had reserved to settle each claim. RCL further alleged that Wingate, "armed with this confidential information ... would attend the mediation and refuse to negotiate an amount lower than the amount set as a maximum by RCL internally." RCL's motion to disqualify Wingate also requested sanctions, including an award of attorney's fees to RCL.
At the hearing on the motions to disqualify, Wingate stipulated that it would withdraw from representing all seventy-seven plaintiffs. Accordingly, the trial court entered an omnibus order on January 28, 2008, finding, inter alia: (1) the motion to disqualify was moot because Wingate agreed to withdraw; (2) Wingate must cease and desist representation of all plaintiffs in the subject seventy-seven cases; and (3) Wingate would be permitted to file a charging lien for fees and costs incurred in representing the subject plaintiffs, but said permission to file such lien was not to be construed as approval or disapproval of the lien; and (4) the merits of any such claims for fees and costs, including both entitlement and amount, would be adjudicated by the court at a future hearing.
On February 21, 2008, the court held a hearing on RCL's motion for sanctions. Wingate maintained that sanctions should
At a hearing held on January 15, 2009, it was brought to the court's attention that Wingate had entered into a secret agreement with successor counsel (the Rivkind firm), through which Wingate would receive, and had in fact already begun to receive, as attorney's fees and costs, a portion of the funds recovered in the RCL cases.
On February 18, 2009, the court held a hearing on the order to show cause. During the hearing, Wingate agreed to withdraw (or refrain from filing) any charging lien for attorney's fees on all of the seventy-seven cases. However, Wingate contended that they should be permitted to seek reimbursement of costs actually expended in the course of representing the seventy-seven plaintiffs. The following exchange took place between the court and Wingate's counsel:
Thus, the court made it abundantly clear that, based upon its findings of Wingate's illegal and unethical conduct, Wingate was not entitled to "recover cost[s] as the cases are settled" from any of the seventy-seven cases. Thereafter, the court entered a contempt order against Wingate, finding the agreement with the Rivkind firm was "a secret, self-serving and illegal arrangement intended as a means of evading this
Wingate appealed the trial court's contempt order. Wingate framed the issue on appeal:
Other than correcting a mathematical error, this Court affirmed the trial court's contempt order, finding that Wingate's argument on appeal "lacks merit." Wingate v. Celebrity Cruises,
Mr. Wingate was evidently unfazed by the order of criminal contempt, undaunted by the unsuccessful appeal of that order, and undeterred by the disciplinary proceedings and his ultimate disbarment. Four days after this Court issued the mandate in the first appeal, and in what appears to be a textbook example of legal chutzpah,
Wingate contends that the trial court's denial of Wingate's motion seeking costs for cases which had not yet been settled at the time of the contempt hearing was tantamount to imposing a new sanction for the same conduct for which Wingate had already been sanctioned. Wingate argues that double jeopardy principles preclude punishing them twice for the same conduct. Alternatively, Wingate argues that the trial court was required to conduct a new contempt hearing and follow the procedures of Florida Rule of Criminal Procedure 3.840 before imposing a sanction of denying costs for the cases which were settled after the contempt order was issued. We disagree.
We first note that Wingate's motion was legally insufficient. Although it was styled "Motion for Disbursement of Costs", the motion wholly fails to:
Indeed, Wingate's two-page motion states simply that in its "representation of various claimants, Wingate incurred and advanced payment of certain costs on behalf of its former clients. The costs included hearing and deposition transcripts, filing fees, long distance telephone charges, mailing, deliver and courier service fees, expert fees, and costs for obtaining copies of medical records." No further detail is given, and Wingate did not provide the exact amount for the total costs sought, stating only: "[u]pon information and belief, the total amount of costs disbursed by Wingate for and on behalf of those former clients and now deposited to the Registry of the Court [by the Rivkind firm] is in the approximate amount of One Hundred and Fifty Thousand Dollars ($150,000)."
In the ordinary case, an attorney would not be required to obtain the trial court's authorization before disbursing costs following settlement of these cases. However, these were no ordinary cases. In January 2008, when the trial court allowed Wingate's withdrawal from all seventy-seven cases (including those which had already settled and those which remained pending), the court ordered that any claim for reimbursement of costs be brought before the trial court for an adjudication of Wingate's entitlement to costs and the amount. The court's determination would include an adjudication of both entitlement and amount.
As described above, Wingate's motion failed to include any of the requisite detailed information which would permit the trial court to make a determination of entitlement or amount. Additionally, Wingate failed to provide a transcript of the hearing on the motion, which precludes our ability to provide meaningful review. Based upon the facial insufficiency of the motion, and the absence of a transcript, we affirm the trial court's order. See Applegate v. Barnett Bank of Tallahassee,
Furthermore, Wingate misapprehends the trial court's contempt order, as well as the nature and extent of the sanctions
Wingate argues that, because the court's contempt order addressed only the fees and costs which had already been paid for cases that had been settled, Wingate was free to seek reimbursement for costs on cases that were settled after the contempt order was issued. We do not agree. The settlement status of the seventy-seven cases fell into three different categories:
As to the first category of cases ("settled and disbursed"), the court ordered that the monies received by Wingate from the Rivkind firm be repaid by Wingate to the clerk of court within thirty days.
It is this "omission" which Wingate seizes upon in an effort to seek reimbursement of costs for cases which were "pending" at the time of the contempt hearing and which were later settled. Wingate has offered no rational basis for the contention that he is entitled to such costs, other than the fact that the court did not include a provision directing the "disbursement" of these funds. Of course, the reason why no such provision was included in the order is quite simple: there had been no settlement in any of these cases; there was no way of knowing if there would be a settlement in any of these cases; and if there was a settlement, there was no way of knowing how much money would be paid by RCL.
The fact that the trial court's contempt order addressed the disposition of monies only from the first two categories of cases (settled and disbursed; settled,
More to the point, the trial court's contempt order expressly found that Wingate had to repay fees and costs he already received, and also expressly found that Wingate was not entitled to fees and costs on cases which had settled but the monies (being held by the Rivkind firm) were not yet disbursed to Wingate. There is no basis in logic or law to distinguish the fees and costs in the "settled, not disbursed" category from the "pending" category. The court prohibited the Rivkind firm from paying Wingate in the former, and directed those monies be deposited with the clerk of the court. The same would necessarily hold true for the latter if and when the cases moved from the "pending" category to the "settled, not disbursed" category. The fact that the trial court did not expressly direct the disposition of the as-yet-unpaid monies from as-yet-unsettled cases was nothing more than a practical acknowledgment of the fact that, until those cases were settled, and monies paid to the Rivkind firm, there was nothing for the court to order disbursed or distributed.
Accordingly, we affirm the trial court's order denying Wingate's motion for disbursement of costs. We remand this cause to the trial court for the appropriate disbursement of monies which continue to be held by the clerk of court. It would appear that, given the unique circumstances presented, the most appropriate course would be to return to each of the applicable claimants the respective share of the monies which were deducted as "costs" from the settlement of their claim and deposited with the clerk. In the event that some of the individual claimants cannot be located following a diligent search, we are confident that the trial court will fashion the appropriate disposition of any remaining monies.
- No Cases Found