Florida appeals court finds consumer is entitled to attorney’s fees following debt collection suit

Courts State Issues Attorney Fees Debt Collection

On September 14, a Florida appeals court held that a consumer was entitled to attorney’s fees after a debt collector voluntarily dismissed its “account stated” collection lawsuit for an unpaid credit card balance. Following the debt collector’s voluntary dismissal, the consumer moved for attorney’s fees under a provision in the credit card account agreement that provides for fees to the creditor in any collection action and the reciprocity provision in Section 57.105(7), Florida Statutes (2015). The Florida reciprocity statute permits a court to grant reasonable attorney’s fees to a prevailing party, whether as plaintiff or defendant, with respect to an action to enforce the contract. The appellate court reversed the trial court’s order and found that the consumer was entitled to attorney’s fees. The court concluded that, because the consumer was the prevailing party and the collection action was to enforce the contract, the reciprocity provision in section 57.105(7) applied to the consumer’s request for attorney’s fees under the terms of the agreement. The court remanded the case to the trial court to determine the attorney’s fee award.