YOUR SUPPORT SOLUTION, P.A. d/b/a SUPPORT SOLUTIONS v. BELKYS OVALLES ( 2022 )


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  •       Third District Court of Appeal
    State of Florida
    Opinion filed July 27, 2022.
    Not final until disposition of timely filed motion for rehearing.
    ________________
    No. 3D21-1953
    Lower Tribunal No. 17-10876
    ________________
    Your Support Solution, P.A. d/b/a Support Solutions,
    Appellant,
    vs.
    Belkys Ovalles,
    Appellee.
    An Appeal from the Circuit Court for Miami-Dade County, David
    Young, Judge.
    Your Support Solution, P.A. d/b/a Support Solutions, and Lawrence J.
    Shapiro, for appellant.
    Forrest Sygman, P.A., and Forrest Sygman and Marlene Collazo, for
    appellee.
    Before LOGUE, LINDSEY, and LOBREE, JJ.
    LINDSEY, J.
    Appellant Your Support Solution, P.A. d/b/a Support Solutions appeals
    from an order denying its motion to enforce a charging and retaining lien
    against its former client, Appellee Belkys Ovalles. The order determines that
    Support Solutions’ Contingency Fee Agreement is unenforceable.            We
    reverse because the Florida Rules of Professional Conduct do not prohibit
    contingency fee agreements for legal representation to recover post-
    judgment child support arrearages.
    I.     BACKGROUND
    In May 2017, Ovalles filed a petition to determine paternity, which
    sought child support from the putative father. An agreed final judgment of
    paternity was entered in July 2018. Pursuant to the final judgment, the father
    agreed to pay monthly child support in the amount of $750.           Support
    Solutions did not represent Ovalles during this time, and it was not involved
    in securing the amount of child support.
    Ovalles hired Support Solutions in May 2020 to initiate post-judgment
    collection proceedings to recover past due child support. Ovalles signed a
    written Contingency Fee Agreement and agreed to pay Support Solutions a
    set percentage of any amounts recovered. A few months later, Support
    Solutions helped secure a Final Judgment of Support Arrearages, which
    2
    determined Ovalles was due eight months of past due child support, from
    March 2020 to October 2020.
    After obtaining the Final Judgment of Support Arrearages, Ovalles
    terminated her attorney-client relationship with Support Solutions and hired
    Forrest Sygman, P.A. Support Solutions filed a notice of charging and
    retaining lien and moved to enforce the lien. In response, Ovalles filed a
    request for judicial notice, attaching Florida Rule of Professional Conduct 4-
    1.5, which concerns Fees and Costs for Legal Services. Ovalles later filed
    a Memorandum of Law Regarding Enforceability of Contingency Fee
    Agreements in which she argued that the Contingency Fee Agreement was
    unenforceable and void pursuant to Rule 4-1.5(f)(3)(A).
    Following a hearing, the trial court issued an order denying Support
    Solutions’ motion to enforce the charging and retaining lien. The court
    concluded that Rule 4-1.5(f)(3)(A) prohibited contingency fees as against
    public policy in this case. Support Solutions timely appealed.
    II.     ANALYSIS
    The issue before us is whether a contingency fee agreement for legal
    representation to recover post-judgment child support arrearages is
    enforceable. This case involves the interpretation and application of the
    3
    Rules of Professional Conduct, which is a pure legal issue subject to de novo
    review. Young v. Achenbauch, 
    136 So. 3d 575
    , 580 n.3 (Fla. 2014).
    Rule 4-1.5(f) governs contingency fees. In general, contingency fees
    are permitted except as prohibited by 4-1.5(f)(3) or by law. Rule 4-1.5(f)(3)
    provides in pertinent part as follows:
    (3) A lawyer must not enter into an
    arrangement for, charge, or collect:
    (A) any fee in a domestic relations matter, the
    payment or amount of which is contingent
    on the securing of a divorce or on the
    amount of alimony or support, or property
    settlement in lieu thereof . . . .
    Ovalles maintains that the Contingency Fee Agreement in this case is
    unenforceable pursuant to Rule 4-1.5(f)(3)(A). We disagree. As set forth by
    the plain language of the Rule, contingency fees are not permitted in
    domestic relations matters if contingent “on the amount of . . . support[.]” 1
    Here, Support Solutions had nothing to do with establishing the amount of
    support, which is set forth in the July 2018 final judgment of paternity.
    1
    Contingency fees are likewise not permitted if contingent on securing a
    divorce. Though this is not a divorce action, Ovalles and the trial court both
    rely on King v. Young, Berkman, Berman & Karpf, P.A., 
    709 So. 2d 572
    , 573
    (Fla. 3d DCA 1998). In King, this Court invalidated a fee provision because
    it improperly included a “bonus fee” based on results obtained in a dissolution
    action. King is inapplicable to the instant case, which involves a contingency
    fee agreement to recover child support arrearages in a post-judgment
    paternity action.
    4
    Support Solutions was hired to recover past-due amounts nearly two years
    after the final judgment established the amount of support.
    Consistent with the clear language of Rule 4-1.5(f)(3)(A), the Comment
    to the Rule explains as follows:
    Subdivision (f)(3)(A) prohibits a lawyer from
    charging a contingent fee in a domestic relations
    matter when payment is contingent upon the
    securing of a divorce or upon the amount of alimony
    or support or property settlement to be obtained. This
    provision does not preclude a contract for a
    contingent fee for legal representation in connection
    with the recovery of post-judgment balances due
    under support, alimony, or other financial orders
    because such contracts do not implicate the same
    policy concerns.
    (Emphasis added).
    Because the plain language of Rule 4-1.5(f)(3)(A) does not prohibit a
    contingency fee to recover post-judgment child support arrearages, the
    Contingency Fee Agreement in this case is enforceable.        We therefore
    reverse and remand for further proceedings. 2
    Reversed and remanded.
    2
    The only issue before us is whether the Contingency Fee Agreement is
    enforceable. We do not address the amount of fees, which will be
    determined below.
    5
    Your Support Solution, P.A., etc. v. Belkys Ovalles
    Case No. 3D21-1953
    LOGUE, J., concurring.
    I concur in the holding that contingency fees are not per se prohibited
    to collect post-judgment balances, which I understand as arrearages, due
    under support, alimony, or other financial orders where such fees do not
    implicate the general policy concerns behind the general prohibition on
    contingency fees in domestic relation cases. I write only to note that Your
    Support Solution, P.A. obtained a judgment of $6,000, collected $1,085.71,
    and requested fees in the area of $25,370 under the contract at issue. If
    these fees are recognized as a lien against future payments, the support
    payments of $750 a month will be paid to the attorney rather than the child
    for over the next two years, if not paid by another source. Because the trial
    court did not do so, we do not reach more specific issues relating to the use
    of contingency fees to collect post-judgment balances due under support,
    alimony, or other financial orders. We leave those issues to be addressed by
    the trial court in the first instance.
    6
    

Document Info

Docket Number: 21-1953

Filed Date: 7/27/2022

Precedential Status: Precedential

Modified Date: 7/27/2022