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WHEN ATTORNEY’S FEES GO TOO FAR

A NEW FLORIDA DECISION EVERY LANDLORD SHOULD KNOW

Written by Kevin Knight

In a recent decision with meaningful implications for residential property owners and managers across Central Florida, the Fourth District Court of Appeal clarified an important limitation on attorney’s fee awards in landlord-tenant disputes The case Wenlei Mao v Adam Smith and Tamara Smith addresses a recurring issue in litigation: how far a prevailing party can go in recovering attorneys fees

While many landlords are familiar with the concept that the “prevailing party” may recover attorney’s fees under a lease or Florida law, this decision underscores a critical boundary one that can significantly impact litigation strategy settlement decisions and risk exposure

BACKGROUND OF THE CASE

The dispute arose from a small claims action filed by tenants against their landlord, asserting multiple claims related to the tenancy, including issues involving the handling of a security deposit The case ultimately proceeded to a six-day bench trial, an unusually lengthy proceeding for a small claims matter

The tenants represented themselves at trial although one of the tenants was a licensed attorney After trial:

The tenants prevailed on some claims (including a key security deposit issue)

The landlord prevailed on others

Both sides sought attorney’s fees and costs

Following post-trial proceedings the trial court awarded substantial attorneys fees to the tenants This included compensation not only for:

1 Work performed on the merits of the case

2 Work establishing entitlement to fees

but also for time spent litigating the amount of attorney’s fees itself commonly referred to as “fees for fees”

The landlord appealed

THE LEGAL ISSUE: WHAT ARE “FEES FOR FEES”?

Florida law recognizes three distinct components of attorney’s fee claims:

Time spent litigating the case itself

Time spent establishing entitlement to fees

Time spent litigating the amount of fees

The third category fees incurred arguing about how much should be awarded is known as “fees for fees

And here’s the key point:

FLORIDA COURTS GENERALLY DO NOT ALLOW RECOVERY OF FEES FOR FEES.

There are only three exceptions:

1 When a statute explicitly allows it

2 When the contract language is broad enough to include it

3 When awarded as a sanction for bad faith conduct

PRACTICAL TAKEAWAYS FOR LANDLORDS AND PROPERTY MANAGERS

This decision provides several important lessons for those managing residential properties in Florida:

1. NOT ALL ATTORNEY’S FEES ARE RECOVERABLE

Even if a lease or statute allows recovery of attorney’s fees that does not mean all litigation-related fees are fair game Courts will strictly interpret the language

2. LEASE LANGUAGE MATTERS A LOT

The scope of recoverable fees often turns on precise wording Narrow language tied to “enforcement” may limit recovery, while broader language could expand it

3. FEE LITIGATION CAN SPIRAL QUICKLY

This case illustrates how a relatively modest dispute can evolve into extensive litigation over fees sometimes exceeding the underlying damages

4. COURTS ARE INCREASINGLY SENSITIVE TO OVER-LITIGATION

The trial court itself noted that both sides over-litigated the case and that the fees were disproportionate to the amount at stake This is a growing theme in Florida courts

RISK MANAGEMENT STRATEGIES FOR PROPERTY OWNERS

To minimize exposure and improve outcomes in similar disputes, landlords should consider:

Reviewing lease provisions with counsel to ensure clarity on attorney’s fees

Documenting all tenant interactions especially regarding deposits

Evaluating early settlement opportunities to avoid fee escalation

RISK MANAGEMENT STRATEGIES FOR PROPERTY OWNERS CONTINUED

Using proportional litigation strategies aligned with the value of the dispute

Consulting experienced counsel early in contested matters

For apartment managers and residential property owners, this case is more than a technical legal ruling it is a practical warning.

It reinforces that:

Attorney’s fee exposure can expand quickly but it is not unlimited

Courts will enforce strict boundaries on what can be recovered

Overly aggressive litigation strategies may backfire, even for prevailing parties

Most importantly the decision highlights the critical role of lease drafting and litigation strategy

A well-drafted lease and a disciplined approach to disputes can mean the difference between a manageable legal issue and a costly drawn-out battle over fees

In an environment where tenant disputes particularly involving security deposits are common, this case serves as a timely reminder:

Winning the case does not guarantee recovering every dollar spent to win it

For Central Florida landlords, understanding that distinction is essential to protecting both legal and financial interests

Written by Kevin Knight

In a recent Florida appellate decision, Beachway Restaurants, LLC v Coquina Beach Holdings, Inc, the Fifth District Court of Appeal addressed an issue that frequently arises after a lease dispute: when can a landlord treat property left behind by a tenant as “abandoned”?

The ruling is important for both residential and commercial landlords because it reinforces a basic but often misunderstood principle: a tenant’s departure from the premises does not automatically mean the tenant has abandoned personal property left inside

WHAT HAPPENED IN THE CASE?

The dispute involved a commercial lease between Beachway Restaurants LLC and Coquina Beach Holdings. After a disagreement between the parties Beachway brought claims against the landlord for unlawful eviction tortious interference and conversion

The appellate court affirmed the trial court’s ruling on most of the claims but reversed the decision on the conversion claim

A “conversion” claim essentially means that someone wrongfully exercised control over another persons property In landlord-tenant disputes conversion claims often arise when landlords remove dispose of, lock away, or use property that belonged to the tenant

The appellate court explained that abandonment can defeat a conversion claim, but only if there is evidence showing that the tenant intended to abandon the property and acted in a way that carried out that intent

The court found that while there was evidence the business itself had been abandoned, there was no competent evidence showing that the tenant intended to abandon the inventory and personal property left inside the premises Because of that, the conversion claim had to be reinstated and sent back to the trial court for further proceedings

WHAT HAPPENED IN THE CASE?

The dispute involved a commercial lease between Beachway Restaurants, LLC, and Coquina Beach Holdings After a disagreement between the parties, Beachway brought claims against the landlord for unlawful eviction, tortious interference, and conversion

The appellate court affirmed the trial court’s ruling on most of the claims but reversed the decision on the conversion claim

A “conversion” claim essentially means that someone wrongfully exercised control over another person ’ s property In landlord-tenant disputes, conversion claims often arise when landlords remove, dispose of, lock away, or use property that belonged to the tenant

The appellate court explained that abandonment can defeat a conversion claim but only if there is evidence showing that the tenant intended to abandon the property and acted in a way that carried out that intent

The court found that while there was evidence the business itself had been abandoned, there was no competent evidence showing that the tenant intended to abandon the inventory and personal property left inside the premises Because of that the conversion claim had to be reinstated and sent back to the trial court for further proceedings

WHY THIS DECISION MATTERS TO RESIDENTIAL LANDLORDS

Although this case involved a commercial lease, the reasoning is highly relevant to residential landlords and property managers

Many landlords assume that if a tenant vacates the unit stops paying rent, disappears, or leaves furniture and belongings behind, the landlord is free to dispose of everything immediately This case serves as a warning that doing so too quickly can create significant legal exposure

Florida law generally requires caution before treating tenant property as abandoned Courts will look at whether the tenant truly intended to give up ownership of the property Simply moving out is not always enough

For example, suppose a tenant is evicted and leaves behind: Furniture Clothing

Electronics

Personal documents

Appliances

Valuable collectibles

If the landlord immediately throws away or sells those items without following proper procedures, the tenant may later claim conversion or wrongful disposal of property

Under the reasoning in Beachway a court may distinguish between:

1 Abandonment of the rental unit itself and

2 Abandonment of the tenant’s personal property

Those are not necessarily the same thing

PRACTICAL LESSONS FOR LANDLORDS AND MANAGEMENT STAFF

1. Do Not Assume Property Is Abandoned

A vacant apartment does not automatically mean all property inside has been abandoned

Management staff should avoid making snap judgments based solely on:

Nonpayment of rent

Utilities being disconnected

The tenant not answering calls

A partially empty unit

A move-out rumor from neighbors

Courts often require evidence showing the tenant intended to permanently give up the property

2. Follow Florida Statutory Procedures Carefully

Residential landlords should carefully follow Florida statutes governing abandoned property and post-eviction handling of belongings

Even when management strongly believes the tenant has left permanently, documentation and proper notice procedures remain extremely important

Best practices include:

Photographing the condition of the unit

Creating detailed inventories

Sending written notices

Preserving valuable property for an appropriate period

Consulting legal counsel before disposing of high-value items

3. Train Staff Not to Remove Property Prematurely

One of the biggest risks comes from maintenance personnel or onsite managers acting too quickly

Common mistakes include:

Throwing belongings into dumpsters

Allowing others to take property

Moving items offsite without documentation

Changing locks while property remains inside

Using or distributing tenant property

These actions can later become evidence supporting a conversion claim

4. Distinguish Trash From Valuable Property

Courts are more likely to view obvious garbage as abandoned

However items that appear organized valuable or intentionally stored may indicate continuing ownership

For example:

Broken food containers may be trash

Family photographs, jewelry, electronics, or furniture usually are not

When in doubt landlords should proceed conservatively

Impact on Tenants

The ruling also provides important protections for tenants Tenants sometimes leave property behind because:

They are moving quickly

They lack transportation

They are hospitalized

They are financially distressed

An eviction occurred unexpectedly

They intend to return later for belongings

This decision reinforces that tenants do not automatically lose ownership rights simply because they vacate the premises

However, tenants should also understand that leaving property behind creates risk and confusion Tenants are always best protected when they:

Remove all belongings promptly

Communicate clearly with management

Request access in writing

Document remaining property

The Bigger Legal Message

The broader lesson from Beachway Restaurants is that courts require actual evidence of intent before finding abandonment of personal property

For landlords this means caution documentation and compliance with statutory procedures are essential For tenants, it confirms that ownership rights in personal property do not disappear automatically when a lease dispute arises

In today’s environment of increased litigation and heightened scrutiny of landlord practices, property managers who follow careful procedures and avoid self-help measures will place themselves in a far stronger legal position if disputes later arise

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