In re: ASSET ENHANCEMENT, INC.,

Summarized by Amir Shachmurove , Brown Rudnick LLP
2 years 2 months ago

Case Type:

Business

Case Status:

Reversed and Remanded

Citation:

22-11389 (11th Circuit, Dec 05,2023) Published

Tag(s):

Ruling:

Applying a circuit rule--that a contempt order that contemplates imposing attorneys’ fees as a contempt sanction but does not specify the amount of any award is not a final, appealable order; the later order that awards damages qualifies, but making both appealable--the U.S. Court of Appeals for the Eleventh Circuit (Circuit) held Robert Sweetapple (RS) have timely appealed the bankruptcy court's contempt order for he filed his appeal within 14 days of the later specific award, thus vacating the district court's dismissal of this aspect of and remanding for full consideration, of RS's appeal.

Procedural context:

Ultimately, the Town of Gulfstream (Gulfstream) and Asset Enhancement, Inc. (asset) settled the latter's objection to the former's response to its Florida Public Records Act request with final judgment that was entered against Gulfstream. This judgment, however, left the amount of attorneys’ fees and costs for the state court to ascertain and determine. That tribunal held an evidentiary hearing on that matter and set final argument for May 28, 2020. While, on May 27, 2020, Asset filed a Chapter 11 bankruptcy petition with the U.S. Bankruptcy Court for the Southern District of Florida (BC), the state court promptly determined that the automatic stay did not apply and went ahead with its May 28, 2020, hearing. Even so, the state court eventually decided to wait to rule on the issue of attorneys’ fees until the conclusion of the bankruptcy proceedings. About six weeks later, Asset filed its Amended Motion for Contempt for Violation of the Automatic Stay and For Sanctions with the BC, which opted to grant Asset's motion in part. Consistent with this order, after the BC rejected Gulfstream's reconsideration motion, Asset timely moved for specific attorneys’ fees. Once the parties agreed to the amount of attorneys’ fees, the BC entered an order awarding Asset Enhancement $12,931.50 for attorneys’ fees and costs incurred in connection with the motion. RS, who had been Gulfstream's counsel throughout, then filed his Notice of Appeal in the U.S. District Court for the Southern District of Florida (DC), wherein he challenged the contempt, reconsideration, and fee orders; Asset moved to dismiss RS's appeal for lack of jurisdiction. The DC agreed with Asset on this narrow argument and therefore dismissed the appeal. RS proceeded to appeal this dismissal of his challenges to the contempt and reconsideration order. (Though RS' notice of appeal mentioned the fee order, RS failed to include briefing on that issue, and the Circuit thus held him to have abandoned any such challenge. Regardless, the Circuit did make clear it would have affirmed on the merits.)

Facts:

Asset submitted a Florida Public Records Act request to Gulfstrean, After Gulfstream responded in a way that Asset deemed incomplete and dilatory, Asset filed an action in Palm Beach Circuit Court against Gulfstream. Because of Gulfstream’s alleged delay, Asset argued, it was entitled to recover attorneys’ fees and reasonable costs associated with enforcement of the record request, first in state court and then before the BC (as summarized above).

Judge(s):

Robin S. Rosenbaum; Elizabeth L. Branch; and Andrew L. Brasher

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