General Motors Corp. v. Sanchez

Florida Third District Court of Appeal · Torts

TortsLemon LawAttorney's FeesStatutory InterpretationAmerican Ruleattorney's feesdamagesFlorida Lemon Law

Facts

A Lemon Law arbitration board found that Sanchez's 2005 Chevrolet Equinox was a lemon and ordered General Motors to provide the relief available under the statute, including a full reimbursement of the purchase price. General Motors fully complied with that order. Sanchez then brought a separate circuit court action, acknowledging that he had been fully reimbursed and had suffered no other damages, but seeking to recover attorney's fees incurred by counsel who represented him before the arbitration board. The attorney's representation before the board was permitted but not required.

Issue

Can a consumer who has already received full Lemon Law relief and has no other damages maintain a separate action under section 681.112(1) solely to recover attorney's fees incurred in the Lemon Law arbitration proceeding? Does the statute's authorization of fees in a successful action to recover damages encompass those arbitration fees?

Rule

Under Florida's American Rule, each party bears its own attorney's fees unless a statute, rule, or contract expressly authorizes fee shifting. Section 681.112(1) permits an action to recover damages caused by a violation of the Lemon Law and awards fees to a consumer who prevails in such an action, but attorney's fees are not damages; therefore, a stand-alone action seeking only arbitration-related attorney's fees is not maintainable under that statute.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Miami, Elena Cruz won a state lemon-law arbitration against Suncoast Auto Group, and the board ordered a full refund for her defective SUV. The company paid the full refund within two weeks. Elena then filed a separate circuit-court action seeking only the $6,400 she had paid her lawyer for representing her in the arbitration.

Under the majority rule of this case, what is the strongest argument for the manufacturer?

Explanation. The majority held that Florida follows the American Rule: attorney's fees are recoverable only when expressly authorized by statute, rule, or contract. Section 681.112(1) permits an action to recover damages caused by a violation of the chapter, but attorney's fees are not damages. Therefore, a stand-alone suit seeking only fees incurred in the prior arbitration cannot be maintained.