You may be facing a lawsuit you think is unfair, or you may be weighing a claim against another business. Either way, you want to know whether a weak claim could cost you money.
Short answer: yes. Eduardo A. Maura is the responsible lawyer for this page.
Yes, Florida law allows fee awards for unsupported claims and defenses
In many cases, a court may award a reasonable attorney’s fee under section 57.105, Florida Statutes, when the losing party or its lawyer knew or should have known that a claim or defense lacked support. The fee is subject to the statute’s exceptions and limits, so whether an award applies depends on the facts of the case. The statute says the court “shall award a reasonable attorney’s fee” when the losing party or the losing party’s attorney knew or should have known that the claim or defense lacked support.
Florida usually follows the American Rule. Each side pays its own lawyer unless a contract or statute says otherwise. Price v. Tyler states that rule, which is why a fee-shifting statute like this one carries weight.
Whether a particular rule applies depends on the facts of each case. Our team handles commercial, contract, shareholder, construction and real estate matters.
Losing a case is not the same as being sanctioned. The statute looks at what the party or lawyer knew or should have known when the claim or defense was first presented to the court or at any time before trial.
If your company was just served with a 57.105 motion, the 21-day window is short, so talk with our team about your deadlines and options. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
What makes a claim or defense “unsupported” under 57.105
A claim or defense is unsupported when the facts don’t back it up. It is also unsupported when existing law doesn’t support it, applied to those facts. The statute covers both gaps, as § 57.105(1) describes.
The court asks whether the party or lawyer “knew or should have known” the claim lacked support. That test applies when the claim was first presented or at any time before trial. The phrase “should have known” means the question is what a careful review would have shown, not only what someone admits they knew.
The statute also has protections. A lawyer who acted in good faith on the client’s account of the facts is also protected.
Whether a particular claim crosses the line depends on the facts of each case.
Who can be held responsible: the party, its lawyer, or both
The fee award is paid by the losing party and the losing party’s attorney. The statute says they pay “in equal amounts.” For a business, the company is the party, and the lawyer who presented the claim or defense is the attorney the statute names.
The court can start this process on its own. Any party can also file a motion, and the request can come at any time during the civil case.
That shared exposure is one reason the facts behind each allegation need checking from the start. A company’s contracts, invoices, emails and property records may contain the material facts the court will test, meaning the facts necessary to establish the claim or defense.
The 21-day safe harbor and how a 57.105 motion is served
The window starts when the motion is served.
If that happens, the motion stays out of the court file. § 57.105(4) sets out this rule.
That makes the served motion a real deadline. The company can withdraw or correct the paper, or it can prepare a defense. Treating the motion as a formality is a mistake, because the window is short.
How the court handles the motion and the fee amount
If the paper is not withdrawn or corrected, the motion can be filed. The court then decides whether an award is warranted and, if so, how much.
Florida courts start from a lodestar fee. Under § 57.104(2), there is a “strong presumption that a lodestar fee is sufficient and reasonable.” That presumption can be overcome only in a rare and exceptional circumstance, with evidence that competent counsel could not otherwise be retained.
Section 57.105 also works alongside other tools. The statute is supplemental to other sanctions or remedies available under law or court rules. A separate provision covers filings made primarily to cause unreasonable delay.
How 57.105 shows up in business disputes
Business disputes reach this rule when a claim or defense has no support in the documents or the law and the losing party or its attorney knew or should have known that it lacked support. Contract disputes are the most direct example.
Under § 57.105(7), if a contract allows attorney’s fees to a party that must enforce it, the court may award fees to the other party when that party prevails. That works whether the winner was the plaintiff or the defendant. It applies to contracts entered into on or after October 1, 1988. A fee clause can cut either way.
Construction disputes often raise questions about whether a lien or payment claim is supported by the facts. Real estate and shareholder disputes often turn on the documents and facts specific to each case. An allegation about ownership, a property record or a member’s removal needs facts behind it when it’s filed.
Not sure what your next step is?
Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
If your company has been served with a 57.105 motion
A served motion starts a short clock. It can arrive without warning, so the first step is comparing the motion with your company’s own records.
Does losing a lawsuit mean I’ll be sanctioned?
Not by itself. The statute asks what was known or should have been known when the claim was initially presented to the court or at any time before trial.
How long do I have after a 57.105 motion is served?
Who pays a 57.105 fee award?
The losing party and the losing party’s attorney pay it, in equal amounts.
If your company was just served with a 57.105 motion, or you’re unsure whether a claim you filed still holds up, reach out to Ayala Law PA through our contact page. The firm’s office is at 1646 W Snow Ave, Tampa, and it represents businesses in Tampa and Hillsborough County.
