Daniels v. Florida Dept. of Health

Decision Date10 March 2005
Docket NumberNo. SC04-230.,SC04-230.
Citation898 So.2d 61
PartiesShari DANIELS, Petitioner, v. FLORIDA DEPARTMENT OF HEALTH, Respondent.
CourtFlorida Supreme Court

Colleen M. Greene and Max R. Price of the Law Offices of Max R. Price, Miami, FL, for Petitioner.

Pamela H. Page, Section Head, Appellate Section and Dana Baird, Assistant General Counsel, Florida Department of

Health Bureau of Health Care, Tallahassee, FL, for Respondent.

QUINCE, J.

We have for review the decision in Daniels v. State Department of Health, 868 So.2d 551 (Fla. 3d DCA 2004), which certified conflict with the decision in Albert v. Department of Health, 763 So.2d 1130 (Fla. 4th DCA 1999), and Ann & Jan Retirement Villa, Inc. v. Department of Health & Rehabilitative Services, 580 So.2d 278 (Fla. 4th DCA 1991). We have jurisdiction. See art. V, § 3(b)(4), Fla. Const. For the reasons which follow, we approve the decision of the Third District Court of Appeal in Daniels, disapprove the decisions of the Fourth District Court of Appeal in Albert and Ann & Jan Retirement Villa to the extent that they are inconsistent with this opinion, and hold that the owner of a partnership or corporation who prevails in an administrative proceeding initiated by a state agency is not entitled to attorney's fees and costs under the Florida Equal Access to Justice Act when the complaint is filed against the owner in his or her individual capacity.

STATEMENT OF THE FACTS AND CASE

On September 20, 2001, the Florida Department of Health (Department) issued an administrative complaint against Shari Daniels, alleging that she had violated section 467.203(1)(f), Florida Statutes (2001).1 Daniels disputed the allegations in the Department's complaint and requested a formal administrative hearing. On March 13, 2002, the Department referred the matter to the Division of Administrative Hearings (DOAH). On June 28, 2002, the Department filed a notice of voluntary dismissal. Consequently, an order was entered on July 3, 2002, closing the Department's file, canceling the scheduled final hearing, and closing the DOAH file.

On August 5, 2002, Daniels filed a petition for attorney's fees under the Florida Equal Access to Justice Act (FEAJA), section 57.111, Florida Statutes (2002), seeking an award of attorney's fees and costs. On August 26, 2002, the Department filed a motion to dismiss Daniels' petition. Daniels did not file a response to the Department's motion to dismiss, and on November 20, 2002, the administrative law judge entered an order granting the motion to dismiss with leave to file an amended petition on or before December 6, 2002. The motion to dismiss was granted because Daniels failed to allege sufficient facts to support her argument that she was a "small business party" as defined in FEAJA.

On December 2, 2002, Daniels filed an amended petition for attorney's fees under FEAJA. In support of her assertion that she is a "small business party," Daniels stated that (1) at the time the underlying action was initiated, her net worth (including both personal and business investments) did not exceed $2 million and she did not employ more than twenty-five full-time employees; (2) she is the sole shareholder of South Beach Maternity Associates, Inc., d/b/a Miami Beach Maternity Center, a subchapter-S corporation;2 (3) she and South Beach Maternity are one and the same entity; and (4) the administrative action stemmed solely from her treatment of a patient of South Beach Maternity. On December 11, 2002, the Department filed a motion to dismiss, and Daniels filed a response to the motion. Nonetheless, on January 2, 2003, the judge entered an order granting the motion to dismiss the amended petition for attorney's fees and providing a date for the filing of the proposed final order. The administrative law judge granted the motion, finding that Daniels had failed to allege sufficient facts to support her argument that she was a "small business party" within the definition of FEAJA.

In the final order, the administrative law judge, relying on Florida Real Estate Commission v. Shealy, 647 So.2d 151 (Fla. 1st DCA 1994), stated that the action in the underlying case was brought against Daniels individually and not her corporation. Thus, he found that allowing her to seek FEAJA fees for acts which she allegedly committed in her individual capacity as if she were a corporation would ignore the corporate form. He also distinguished the instant case from the two cases upon which Daniels relied, Ann & Jan Retirement Villa and Albert. Lastly, he expressly noted that Daniels was not operating as a professional service corporation. On appeal, the Third District affirmed, finding that the administrative complaint was filed against Daniels individually rather than against her corporation and that on this basis, the denial of FEAJA fees was proper. See Daniels, 868 So.2d at 551-52

. We granted review based on certified conflict of decisions.

ANALYSIS

The key issue in this case is whether Daniels, the sole owner of a subchapter-S corporation, qualifies as a small business party as defined in section 57.111, Florida Statutes (2002), when suit is brought against her individually and not against the corporation. If she qualifies as a small business party, she is entitled to fees and costs under FEAJA. The question before us is a matter of statutory interpretation and is a question of law subject to de novo review. See State v. Glatzmayer, 789 So.2d 297, 301 n. 7 (Fla.2001)

. In construing a statute we are to give effect to the Legislature's intent. See State v. J.M., 824 So.2d 105, 109 (Fla.2002). In attempting to discern legislative intent, we first look to the actual language used in the statute. Joshua v. City of Gainesville, 768 So.2d 432, 435 (Fla.2000); accord BellSouth Telecomms., Inc. v. Meeks, 863 So.2d 287, 289 (Fla.2003). When the statute is clear and unambiguous, courts will not look behind the statute's plain language for legislative intent or resort to rules of statutory construction to ascertain intent. See Lee County Elec. Coop., Inc. v. Jacobs, 820 So.2d 297, 303 (Fla.2002). In such instance, the statute's plain and ordinary meaning must control, unless this leads to an unreasonable result or a result clearly contrary to legislative intent. See State v. Burris, 875 So.2d 408, 410 (Fla.2004). When the statutory language is clear, "courts have no occasion to resort to rules of construction — they must read the statute as written, for to do otherwise would constitute an abrogation of legislative power." Nicoll v. Baker, 668 So.2d 989, 990-91 (Fla.1996). Because statutes providing for attorney's fees are in abrogation of the common law, such statutes are to be strictly construed. See Sarkis v. Allstate Ins. Co., 863 So.2d 210, 223 (Fla.2003).

The statute at issue in this case, section 57.111, Florida Statutes (2002), is clear and unambiguous. It provides in relevant part:

57.111 Civil actions and administrative proceedings initiated by state agencies; attorneys' fees and costs.
(1) This section may be cited as the "Florida Equal Access to Justice Act."
(2) The Legislature finds that certain persons may be deterred from seeking review of, or defending against, unreasonable governmental action because of the expense of civil actions and administrative proceedings. Because of the greater resources of the state, the standard for an award of attorney's fees and costs against the state should be different from the standard for an award against a private litigant. The purpose of this section is to diminish the deterrent effect of seeking review of, or defending against, governmental action by providing in certain situations an award of attorney's fees and costs against the state.
(3) As used in this section:
(a) The term "attorney's fees and costs" means the reasonable and necessary attorney's fees and costs incurred for all preparations, motions, hearings, trials, and appeals in a proceeding.
(b) The term "initiated by a state agency" means that the state agency:
. . . .
2. Filed a request for an administrative hearing pursuant to chapter 120;....
. . . .
(c) A small business party is a "prevailing small business party" when:
. . . .
3. The state agency has sought a voluntary dismissal of its complaint.
(d) The term "small business party" means:
1.a. A sole proprietor of an unincorporated business, including a professional practice, whose principal office is in this state, who is domiciled in this state, and whose business or professional practice has, at the time the action is initiated by a state agency, not more than 25 full-time employees or a net worth of not more than $2 million, including both personal and business investments; or
b. A partnership or corporation, including a professional practice, which has its principal office in this state and has at the time the action is initiated by a state agency not more than 25 full-time employees or a net worth of not more than $2 million;....
(4). . . .
. . . .
(d) The court, or the administrative law judge in the case of a proceeding under chapter 120, shall promptly conduct an evidentiary hearing on the application for an award of attorney's fees and shall issue a judgment, or a final order in the case of an administrative law judge. The final order of an administrative law judge is reviewable in accordance with the provisions of s. 120.68. If the court affirms the award of attorney's fees and costs in whole or in part, it may, in its discretion, award additional attorney's fees and costs for the appeal.

§ 57.111, Fla. Stat. (2002) (emphasis added). In essence, a person who has requested review of a state agency action and is the prevailing party in the matter is entitled to attorney's fees and costs if the person fits the statutory criteria of a small business party.

The Department's complaint was filed against Daniels individually. Thus the question before this Court is whether she is included within the statutory definition...

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