06-001078F Hernandez Enterprises vs. Department Of Financial Services, Division Of Workers' Compensation
 Status: Closed
DOAH Final Order on Monday, September 11, 2006.


View Dockets  
Summary: Respondent must pay Petitioner`s attorney fees, as Petitioner is a prevailing small business party. Respondent`s actions were not substantially justified.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8HERNANDEZ ENTERPRISES , INC. , )

12)

13Petitioner , )

15)

16vs. ) Cas e No. 06 - 1078F

24)

25DEPARTMENT OF FINANCIAL )

29SERVICES, DIVISION OF WORKERS' )

34COMPENSATION , )

36)

37Respondent . )

40)

41FINAL ORDER

43This cause came on for f inal hearing before Harry L.

54Hooper, Administrative Law Judge with the Division of

62Administrative Hearings, on July 18 , 2006, in Jacksonville ,

70Florida.

71APPEARANCES

72For Petitioner: H. Leon Holbrook , Esquire

78Tara B. Van Rooy , Esquire

83Holbrook, Akel, Cold,

86Stiefel & Ray, P.A.

90One Independent Drive, Suite 2301

95Jacksonville, Florida 32202 - 5059

100For Respondent: Colin M. Roopnarine, Esquire

106Douglas Dolan, Esquire

109Department of Finan cial Services

114Division of Workers' Compensation

118200 East Gaines Street

122Tallahassee, Florida 32399 - 4229

127STATEMENT OF THE ISSUE

131The issue is whether Respondent should reimburse Petitioner

139for the attorney s' fees and costs Petitioner expended in its

150suc cessful defense of Respondent's Stop - Work Order.

159PRELIMINARY STATEMENT

161Petitioner Hernandez Enterprises, Inc. (Hernandez , Inc. )

168filed a Petition for Award of Attorneys ' Fees and Costs on

180March 23, 2006, with an acc ompanying Affidavit of Attorney s '

192Fees a nd Costs . Earlier, Hernandez, Inc., had contested the

203Department of Financial Services, Division of Workers'

210Compensation's (Division) Stop - Work Order (SWO) in Division of

220Administrative Hearings Case N o. 04 - 1174 .

229That case resulted in a Recommended Ord er finding that the

240SWO issued against Hernandez, Inc., was improvidently issued.

248The Department of Financial Services adopted the Recommended

256Order in pertinent part in a Final Order filed January 25, 2006.

268That Final Order made Hernandez, Inc., a preva iling party and

279the Petition was an outgrowth of that action. The Affidavit

289itemized the services rendered to Hernandez, Inc., and the costs

299expended, as required by Section 57.111, Florida Statutes. On

308April 17, 2006, the Di vision of Workers' Compensati on filed a

320response.

321The case was set for July 18, 2006, in Jacksonville,

331Florida , and was heard as scheduled.

337Petitioner's principal, Jorge Hernandez testified .

343Petitioner also presented the testimony of Harold Beckner

351Bachner, a certified public accou ntant. The Division presented

360the testimony of Division employees Katina Johnson and

368Robert Lambert .

371A Transcript was filed on August 31, 2006 . After the

382hearing, Petitioner and Respondent filed their Proposed Final

390Order s on August 31, 2006 , the date f or filing agreed upon by

404the parties at the conclusion of the hearing.

412References to statutes are to Florida Statutes (200 3 )

422unless otherwise noted.

425FINDINGS OF FACT

4281. Hernandez, Inc., was a contractor based in the

437Jacksonville, Florida area, and wa s in the business of

447installing dry wall, among other construction - related

455activities. Its principal owner, Jorge Hernandez, founded the

463company in 1981.

4662. The Department of Financial Services is the state

475agency responsible for enforcing the Workers' Compensation Law.

483This duty is delegated to t he Division of Workers' Compensation.

494The Division is a state agency. It is not a nominal party.

5063. On February 5, 2004, Hernandez, Inc., was engaged in

516installing drywall in the Bennett Federal Building in

524Jacksonville, Florida, using its own personnel , who were leased

533from Matrix, Inc., an employee leasing company, and two

542subcontractors, GIO & Sons (GIO), of Norfolk, Virginia, and U&M

552Contractors, Inc., (U&M), of Charlotte, North Carolina. The

560leased emp loyees were properly covered by workers' compensation

569insurance provided by the lessor.

5744. Prior to contracting with GIO and U&M, Hernandez, Inc.,

584asked for and received ACORD certificates of insurance, which on

594their face indicated that the subcontracto rs had both liability

604coverage and workers' compensation coverage. It is the practice

613of Hernandez, Inc., to ensure that certificates of insurance are

623provided by subcontractors . The office staff of Hernandez,

632Inc., at all times prior to going out of bus iness, track ed the

646certificates and ensured that they were kept current.

654Hernandez , Inc. had relied on hundreds of these ACORD

663certificates in the past.

6675. During times pertinent, neither GIO or U&M maintained

676workers' compensation insurance on their em ployees that complied

685with the requirements of Section 440.38(7) , Florida Statutes .

6946 . On February 5, 2004, Katina Johnson, an investigator

704with the Division 's Jacksonville office , made a routine visit to

715the Bennett Federal Building with another investi gator. She

724observed personnel from Hernandez, Inc., and its subcontractors

732GIO and U&M , installing dry wall. She also determined that

742Hernandez, Inc., had a contract to install dry wall as a

753subcontractor participating in the construction of the Mayport

761Naval Station BEQ. U&M worked at both the Bennett Federal

771Building site and the Mayport BEQ site as a subcontractor of

782Hernandez, Inc. Ms. Johnson discovered that neither U&M nor GIO

792had workers' compensation coverage for its employers.

7997 . Ms. Johnson a sked for and receive d the certificates of

812insurance that Hernandez, Inc., had obtained from GIO and U&M,

822which facially suggested that Hernandez, Inc. , had determined

830that its subcontractors had appropriate coverage. Nevertheless,

837she issued a SWO on Febr uary 26, 2004, to Hernandez, Inc. , as

850well as GIO, and U&M. By the SWO , Hernandez, Inc., was charged

862with failure to ensure that workers' compensation meeting the

871requirements of Chapter 440, Florida Statutes, and the Florida

880Insurance Code, was in place for GIO and U&M. She also issued

892a n Order of Penalty Assessment that eventually became an Amended

903Order of Penalty Assessment dated March 19, 2004.

9118 . The SWO stated , in bold print, that Hernandez, Inc. ,

922was , "Ordered to Stop Work and Cease All Business Operations in

933the State." Hernandez, Inc., was, at the time, also engaged in

944construction at the new Jacksonville Library and at the

953Carlington Apartments, both of which were located in Florida.

962B y the terms of the SWO , Hernandez was required to stop wor k in

977those sites also . The Division had no evidence that might cause

989it to believe that Hernandez, Inc. , was operating in violation

999of the law at those sites.

10059 . The SWO contained with it a Notice of Rights advising

1017that a formal or informal administra tive hearing might be had

1028and required that a petition for a hearing be filed within 21

1040days of receipt of the SWO , if a hearing was desired .

1052Hernandez, Inc., was not informed that it had the right to an

1064immediate hearing.

106610 . Hernandez, Inc. , timely f iled a petition demanding a

1077formal hearing. In an effort to get back to work, Hernandez,

1088Inc. , entered into an agreement with the Division , whereby it

1098paid a partial penalty of $ 46,694.03, but admitted no liability.

1110The formal hearing did not take place until August 16, 200 5 .

11231 1 . Ms. Johnson had the power to issue a stop - work order.

1138She did not have to get approval from a neutral magistrate or

1150from the Division. Because she was a recent employee of the

1161Division, she conferred with her supervisor Robert Lambert

1169before taking action , and he approved her action in writing .

11801 2 . In February 2004, it was the policy of the Division to

1194issue SWO's for all work sites even though it concluded that a

1206violation had occurred in only the site or sites visited. The

1217Division policy did not require an investigation into all

1226worksites as a prerequisite to shutting down all worksites. Th e

1237policy requiring a contractor to cease work at all worksites was

1248not adopted as a rule.

12531 3 . In February 2004, the Division asserted that

1263compliance with Section 440.10(1)(c) , Florida Statutes, required

1270a general contractor to look beyond an ACORD certificate of

1280insurance to determine if subcontractors had complied with the

1289requirement to maintain the required workers' compensation

1296cove rage ". . . under a Florida endorsement using Florida rates

1308and rules pursuant to payroll reporting that accurately reflects

1317the work performed in this state by such employees." This

1327policy was not adopted as a rule and was subsequently abandoned .

13391 4 . Th e Division, in implementing this policy, asserted

1350that a general contractor must actually review the policy of a

1361subcontractor presenting an ACORD certificate and determine if

1369it was in effect and if it complied with Florida law. This

1381policy was not adopt ed as a rule and the policy was subsequently

1394abandoned .

13961 5 . The Division further asserted that the employees of

1407the subcontractor of a general contractor were to be viewed as

1418if they were employees of the general contractor, when

1427contemplating workers' co mpensation coverage. This policy was

1435not adopted as a rule.

14401 6 . Ms. Johnson acted in conformance with the Division's

1451policies in effect at the time the SWO was issued .

146217. The net worth of Hernandez , Inc., was a negative

1472$1, 821 , 599 , on December 31, 2003 . Hernandez, Inc. , was

1483struggling financially in February 2004 , but was on the way to

1494recovery until the SWO was issued. On November 30, 2004, the

1505net worth of Hernandez, Inc., was a negative $1,161,865, and

1517this figure included the sum of $978,000 that Mr. Hernandez put

1529into the business. Accordingly, Herna n dez, Inc., was a small

1540business party for purposes of Subsection 57.111( 4)(a) , Florida

1549Statutes , during times pertinent.

155318. The SWO , which terminated work at all Hernandez work

1563sites, torpedoed any chance the company had to continue in

1573business. Mr. Hernandez mortgaged his house, which he

1581subsequently lost to creditors, in an effort to keep Hernandez,

1591Inc., in business. All of his efforts failed. The failure was

1602a direct result of the actions of the Division . The Division's

1614interpretations of the law that precipitated their policies , and

1623thus the failure of the business, were both wrong and

1633unreasonable .

163519 . Subsequent to the hearing and Recommended Order in

1645Department of Financial Services, Div ision of Workers'

1653Compensation v. Hernandez, Inc. , Case N o. 04 - 1174 (DOAH

1664October 3, 2005), the Chief Financial Officer entered a Final

1674Order styled, In the Matter of: Hernandez, Enterprises, Inc. ,

1683Case N o. 75492 - 05 - WC ( Florida Department of Financial Se rvices ,

1698January 25, 2006) .

170220 . The Final Order noted that the contractor , Hernandez ,

1712Inc. , complied with the extant law when it, ". . . demanded and

1725received proof of insurance . . . . " The Final Order also noted

1738that there was no authority produced by the Division that would

1749permit the imposition of a fine on Hernandez , Inc.

17582 1 . The Final Order further recited that there was no

1770statutory duty on the part of a contractor to ensure (emphasis

1781supplied) that its subcontractors ha d secured workers'

1789compen sation coverage for its employees. It noted that, ". . .

1801without some formal delineation of the specific obligations of a

1811contractor in ascertaining proof of insurance from a

1819subcontractor, the Department cannot impose a penalty upon the

1828facts presented i n the instant case."

183522 . The Division was ordered to rescind the SWO issued

1846February 26, 2004, and the Amended Order of Penalty Assessment

1856dated March 19, 2004 , and was further ordered to repay the

1867amount of $46,694.03, which had been paid to persuade the

1878Division to abate the SWO .

188423 . The action was initiated by the Division, which is a

1896state agency. At the time the SWO was initiated , there was no

1908reasonable basis in law and fact to do so. The actions of the

1921Division were not "substantially justified."

192624. Hernandez, Inc., prevailed in the hearing because the

1935Chief Financial Officer entered a Final Order in its favor and

1946the O rder has not been reversed on appeal and the time for

1959seeking judicial review of the Final Order has expired.

1968Hernandez, Inc., is, therefore, a "prevailing small business

1976party."

19772 5 . Hernandez , Inc. , paid its law firm, Holbrook, Akel,

1988Cold, Stiefel & Ray, P.A., $51,815.50 in attorney s' fees, and

2000paid $8,837.00 in costs , in its successful defense of the

2011Division's actions.

2013CONCLUS IONS OF LAW

20172 6 . The Division of Administrative Hearings has

2026jurisdiction over the subject matter of and the parties to this

2037proceeding. § § 57.111(4) and 120.57(1), Fla. Stat.

20452 7 . Section 57.111 , Florida Statutes , is the Equal Access

2056to Justice Act ( Act) . Portions that pertain to this case

2068follow :

207057.111. Civil actions and administrative

2075proceedings initiated by state agencies;

2080attorneys' fees and costs .

2085(1) This section may be cited as the

2093' Florida Equal Access to Justice Act. '

2101* * *

2104(3) As u sed in this section:

2111(a) The term ' attorneys ' fees and costs '

2121means the reasonable and necessary

2126attorney s ' fees and costs incurred for all

2135preparations, motions, hearings, trials, and

2140appeals in a proceeding.

2144(b) The term ' initiated by a state agency '

2154means that the state agency:

21591. Filed the first pleading in any state or

2168fed eral court in this state;

21742. Filed a request for an administrative

2181hearing pursuant to chapter 120; or

21873. Was required by law or rule to advise a

2197small business party of a c lear point of

2206entry after some recognizable event in the

2213investigatory or other free - for m proceeding

2221of the agency.

2224(c) A small business party is a ' prevailing

2233small business party ' when:

22381. A final judgment or order has been

2246entered in favor of the sm all business party

2255and such judgment or order has not been

2263reversed on appeal or the time for seeking

2271judicial review of the judgment or order has

2279expired;

2280* * *

2283(d) The term ' small business party ' means:

22921.a. A sole proprietor of an unincorporated

2299bu siness, including a professional practice,

2305whose principal office is in this state, who

2313is domiciled in this state, and whose

2320business or professional practice has, at

2326the time the action is initiated by a state

2335agency, not more than 25 full - time employees

2344or a net worth of not more than $2 million,

2354including both personal and business

2359investments;

2360b. A partnership or corporation, including

2366a professional practice, which has its

2372principal office in this state and has at

2380the time the action is initiated by a state

2389agency not more than 25 full - time employees

2398or a net worth of not more than $2 million;

2408or

2409* * *

2412(e) A proceeding is ' substantially

2418justified ' if it had a reasonable basis in

2427law and fact at the time it was initiated by

2437a state agency.

2440(f) The term ' state agency ' has the meaning

2450described in s. 120.52(1).

2454(4)(a) Unless otherwise provided by law, an

2461award of attorneys ' fees and costs shall be

2470made to a prevailing small business party in

2478any adjudicatory proceeding or

2482administrative proceeding pursuant to

2486chapter 120 initiated by a state agency,

2493unless the actions of the agency were

2500substantially justified or special

2504circumstances exist which would make the

2510award unjust.

2512(b) 1. To apply for an award under this

2521section, the attorney for the pr evailing

2528small business party must submit an itemized

2535affidavit to the court which first conducted

2542the adversarial proceeding in the underlying

2548action, or to the Division of Administrative

2555Hearings which shall assign an

2560administrative law judge, in the cas e of a

2569proceeding pursuant to chapter 120, which

2575affidavit shall reveal the nature and extent

2582of the services rendered by the attorney as

2590well as the costs incurred in preparations,

2597motions, hearings, and appeals in the

2603proceeding.

26042. The application for an award of

2611attorney s ' fees must be made within 60 days

2621after the date that the small business party

2629becomes a prevailing small business party.

2635(c) The state agency may oppose the

2642application for the award of attorney s ' fees

2651and costs by affidavit.

2655( d) The court, or the administrative law

2663judge in the case of a proceeding under

2671chapter 120, shall promptly conduct an

2677evidentiary hearing on the application for

2683an award of attorney s ' fees and shall issue

2693a judgment, or a final order in the case of

2703an ad ministrative law judge. The final

2710order of an administrative law judge is

2717reviewable in accordance with the provisions

2723of s. 120.68. If the court affirms the

2731award of attorney s ' fees and costs in whole

2741or in part, it may, in its discretion, award

2750additio nal attorney s ' fees and costs for the

2760appeal.

27611. No award of attorney s ' fees and costs

2771shall be made in any case in which the state

2781agency was a nominal party.

27862. No award of attorney s ' fees and costs

2796for an action initiated by a state agency

2804shall exc eed $ 50,000.

2810* * *

281328. In proceedings to establish entitlement to an award of

2823attorney s ' fees and costs pursuant to Section 57.111 , Florida

2834Statutes , the initial burden of proof is on the party requesting

2845the award to establish by a preponderance of t he evidence that

2857it prevailed in the underlying action and that it was a small

2869business party at the time the action was initiated. Once the

2880party requesting the award has met this burden, the burden

2890shifts to the agency to establish that its action in in stituting

2902the proceeding was substantially justified or that special

2910circumstances exist that would make an award of attorneys ' fees

2921and costs to Petitioner unjust. Helmy v. Department of Business

2931and Professional Regulation , 707 So. 2d 366, 368 (Fla. 1st DCA

29421998).

29432 9 . In order for a party to obtain attorney s' fees from a

2958state agency, it must demonstrate compliance with all of the

2968dictates of Section 57.111 , Florida Statutes . In this case,

2978Hernandez, Inc., demonstrated by a preponderance of the evide nce

2988that it was a party to an administrative action initiated by a

3000state agency and that it was a prevailing small business party

3011under the Act .

301530 . Hernandez, Inc., timely applied for an award under the

3026section and submitted the required itemized affi davit, which set

3036forth the nature and extent of the services rendered by its

3047attorney as well as the costs incurred in preparations, motions,

3057hearings, and appeals in the proceeding.

306331 . The attorney s' fees and costs exceeded $50,000, so the

3076maximum amou nt that may be award ed is limited to that figure.

30893 2 . The remaining question is whether the agency has a

3101defense in that its actions were substantially justified or that

3111special circumstances exist which would make the award unjust.

3120With regard to the l atter requirement, there are no special

3131circumstances which would make the award unjust. With regard to

3141the former, a further consideration of the laws invoked by the

3152Division in taking its action must be considered.

31603 3 . In determining whether the Div ision's actions were

3171substantially justified, it is the information possessed by the

3180Division , and the Division's application of the law at the time

3191the SWO was issued, that is of paramount importance. Dep't of

3202Health, Bd. o f Physical Therapy Practice v. Cralle , 852 So. 2d

3214930 (Fla. 1 st DCA 2003).

322034. The Act is modeled after the Equal Access to Justice

3231Act, 5 U.S.C. Section 504. When a Florida statute is patterned

3242after a federal law, on the same subject, ". . . it will take

3256the same construction in the Florida courts as its prototype has

3267been given in the federal courts insofar as such construction is

3278harmonious with the spirit and policy of Florida legislation on

3288the subject." Pasco County School Board v. Florida Public

3297Employees Relations Commission , 353 So. 2d 108 (Fla. 1 st DCA

33081977).

330935. In McDonald v. Schweiker , 726 F.2d 311 (7th Cir.

33191983), the court held that "'substantially justified' does not

3328mean 'nonfrivolous'. . . . It means that the government must

3339have a solid though not necessarily corr ect basis in fact and

3351law for the position that it took in this action."

336136. In this case, the facts adduced by Ms. Johnson in

3372February of 2004 were solid. The interpretation of the law

3382used, however, was n either solid nor legally correct, as will be

3394dis cussed below.

33973 7 . Section 440.107 (7)(a) , Florida Statutes, which

3406provides for the issuance of SWO's, provides in part as follows:

3417(7)(a) Whenever the department determines

3422that an employer who is required to secure

3430the payment to his or her employees of the

3439compensation provided for by this chapter

3445has failed to secure the payment of workers'

3453compensation required by this chapter or to

3460produce the required business records under

3466subsection (5) within 5 business days after

3473receipt of the written request of the

3480department, such failure shall be deemed an

3487immediate serious danger to public health,

3493safety, or welfare sufficient to justify

3499service by the department of a stop - work

3508order on the employer, requiring the

3514cessation of all business operations. If

3520the department makes such a determination,

3526the department shall issue a stop - work order

3535within 72 hours. The order shall take

3542effect when served upon the employer or, for

3550a particular employer worksite, when served

3556at that worksite. In addition to serving a

3564stop - work order at a particular worksite

3572which shall be effective immediately, the

3578department shall immediately proceed with

3583service upon the employer which shall be

3590effective upon all employer worksites in the

3597state for which the employer is not in

3605compl iance. A stop - work order may be served

3615with regard to an employer's worksite by

3622posting a copy of the stop - work order in a

3633conspicuous location at the worksite. The

3639order shall remain in effect until the

3646department issues an order releasing the

3652stop - work order upon a finding that the

3661employer has come into compliance with the

3668coverage requirements of this chapter and

3674has paid any penalty assessed under this

3681section. The department may issue an order

3688of conditional release from a stop - work

3696order to an emp loyer upon a finding that the

3706employer has complied with coverage

3711requirements of this chapter and has agreed

3718to remit periodic payments of the penalty

3725pursuant to a payment agreement schedule

3731with the department. If an order of

3738conditional release is iss ued, failure by

3745the employer to meet any term or condition

3753of such penalty payment agreement shall

3759result in the immediate reinstatement of the

3766stop - work order and the entire unpaid

3774balance of the penalty shall become

3780immediately due. The department may r equire

3787an employer who is found to have failed to

3796comply with the coverage requirements of

3802s. 440.38 t o file with the department, as a

3812condition of release from a stop - work order,

3821periodic reports for a probationary period

3827that shall not exceed 2 years th at

3835demonstrate the employer's continued

3839compliance with this chapter. The

3844department shall by rule specify the reports

3851required and the time for filing under this

3859subsection.

3860* * *

38633 8 . The Division, by ordering Hernandez, Inc., to stop

3874work at t wo sit es it had not even inspected, completely

3886disregarded the language in Section 440.107(7)(a), Florida

3893Statutes , providing that, "In addition to serving a stop - work

3904order at a particular worksite which shall be effective

3913immediately, the department shall imme diately proceed with

3921service upon the employer which shall be effective upon all

3931employer worksites in the state for which the employer is not in

3943compliance (emphasis added). This action was not substantially

3951justified.

39523 9 . Section 440.10(1) (c) , Florida Statutes , provides that,

"3962A contractor shall require a subcontractor to provide evidence

3971of workers' compensation insurance. " Hernandez, Inc., provided

3978the Division with the ACORD certificates indicating the two

3987noncovered subcontractors were insured. T hese ACORD

3994certificates were evidence of workers' compensation insurance.

4001The Division's policy that general contractors like Hernandez,

4009Inc., must investigate the subcontractor's policies and make

4017determinations with regard to the detail s of the coverage , is

4028not found in any statute or rule. The action taken against

4039Hernandez, Inc., based on this policy, was not substantially

4048justified.

404940 . The Division had, at the time the SWO was issued, a

4062policy , but no rule, that deemed the employees of the

4072subcont ractor to be the employees of the general contractor, and

4083acted against Hernandez, Inc., in conformance with this policy.

4092The Division referred to the subcontractors' employees as

"4100statutory employees," pursuant to Section 440.10(1)(b) , Florida

4107Statutes .

410941 . T his policy , which was not adopted as a rule, ignored

4122the phrase in that statute that recited, ". . . except to

4134employees of a subcontractor who has secured such payment," and

4144the following subsection (c), recited above, which informed

4152general contra ctors that they must only require evidence that a

4163subcontractor who has secured such payment. This policy, and

4172the action taken against Hernandez, Inc. , pursuant to it, was

4182not substantially justified.

418542 . The Final Order recognizes this in its statement that,

"4196In this case, the Petitioner (The Division) has not cited

4206authority in the Florida Administrative Code that would permit

4215the Petitioner, under the particular facts of this case, to

4225impose a fine on a contractor, where the contractor credibly

4235demand ed and received proof of insurance, that the subcontractor

4245had failed to secure coverage. . . ." It further recited that,

"4257Without some formal delineation of the specific obligations of

4266a contractor in ascertaining proof of insurance from a

4275subcontractor, the Department cannot impose a penalty under the

4284facts presented in the instant case."

429043. The Division cannot claim to have been substantially

4299justified in issuing the SWO when the Department of Financial

4309Services admits it had no legal authority to do so. See Lagoon

4321Oaks, Inc. v. Department of Health and Rehabilitative Services ,

4330Case No. 96 - 4969F (DOAH July 2, 1997).

433944. For the several reasons noted , the Division did not

4349have a "solid though not necessarily correct basis in law" upon

4360which it could g round its actions in February 2004. The

4371Division's interpretation of the law was well wide of the mark.

4382There was no reasonable basis in law at the time the Division

4394commenced its action against Hernandez, Inc. Accordingly, the

4402SWO issued by the Divisio n was not substantially justified.

441245. Therefore, the dictates of Section 57.111 , Florida

4420Statutes, have been wholly satisfied and the Division should pay

4430Hernandez, Inc., the attorney s' fees and costs expended in

4440defense of the Division's action, up to t he $50,000 limit

4452provided by the statute.

4456DISPOSITION

4457Based upon the Findings of Fact and Conclusions of Law, it

4468is

4469ORDERED that Petitioner's Petition for Attorney s ' Fees and

4479Costs is granted. Respondent shall pay to Petitioner within 30

4489days of the dat e of this Final Order the sum of $50,000 for

4504attorneys ' fees and costs incurred by Petitioner in DOAH Case

4515No. 04 - 1174.

4519DONE AND ORDERED this 11th day of September , 2006, in

4529Tallahassee, Leon County, Florida.

4533S

4534HARRY L. HOOPER

4537Administrative Law Judge

4540Division of Administrative Hearings

4544The DeSoto Building

45471230 Apalachee Parkway

4550Tallahassee, Florida 32399 - 3060

4555(850) 488 - 9675 SUNCOM 278 - 9675

4563Fax Filing (850) 921 - 6847

4569www.doah.state.fl.us

4570Filed with the Clerk of the

4576Division of Administrative Hearings

4580this 11th day of September , 2006 .

4587COPIES FURNISHED :

4590H. Leon Holbrook, III, Esquire

4595Tara B. Van Rooy, Esquire

4600Holbrook, Akel, Cold,

4603Stiefel & Ray, P.A.

4607One Independent Drive , Suite 2301

4612Jacksonville, Florida 32202 - 5059

4617Colin M. Roopnarine, Esquire

4621Douglas Dolan, Esquire

4624Department of Financial Services

4628Division of Workers' Compensation

4632200 East Gaines Street

4636Tallahassee, Florida 32399 - 4229

4641Carlos G. Mu ñ iz, General Counsel

4648Department of Financial Services

4652The Capitol, Plaza Level 11

4657Tallahassee, Fl orida 32399 - 0307

4663Honorable Tom Gallagher

4666Chief Financial Officer

4669Department of Financial Services

4673The Capitol, Plaza Level 11

4678Tallahassee, Florida 32399 - 0300

4683NOTICE OF RIGHT TO JUDICIAL REVIEW

4689A party who is adversely affected by this Final Order is

4700e ntitled to judicial review pursuant to Section 120.68, Florida

4710Statutes. Review proceedings are governed by the Florida Rules

4719of Appellate Procedure. Such proceedings are commenced by

4727filing the original Notice of Appeal with the agency clerk of

4738the Divi sion of Administrative Hearings and a copy, accompanied

4748by filing fees prescribed by law, with the District Court of

4759Appeal, First District, or with the District Court of Appeal in

4770the Appellate District where the party resides. The notice of

4780appeal must be filed within 30 days of rendition of the order to

4793be reviewed.

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PDF
Date
Proceedings
PDF:
Date: 01/24/2007
Proceedings: Transmittal letter from Claudia Llado forwarding Transcript and Exhibits to the agency.
PDF:
Date: 12/15/2006
Proceedings: BY ORDER OF THE COURT: Appeal dismissed.
PDF:
Date: 11/29/2006
Proceedings: Invoice for the record on appeal mailed.
PDF:
Date: 11/29/2006
Proceedings: Index (of the Record) sent to the parties of record.
PDF:
Date: 10/30/2006
Proceedings: Docketing Statemet and Notice of Appearance of Counsel filed.
PDF:
Date: 10/16/2006
Proceedings: Letter to Ann Cole from J. Wheeler acknowledgment of receipt of notice of appeal, DCA Case No. 1D06-5313.
PDF:
Date: 10/12/2006
Proceedings: Certified Copy of Notice of Appeal sent to the First District Court of Appeal on this date.
PDF:
Date: 10/11/2006
Proceedings: Notice of Appeal filed.
PDF:
Date: 09/11/2006
Proceedings: DOAH Final Order
PDF:
Date: 09/11/2006
Proceedings: Final Order (hearing held July 18, 2006). CASE CLOSED.
Date: 08/31/2006
Proceedings: Transcript of Proceedings filed.
PDF:
Date: 08/31/2006
Proceedings: (Respondent`s) Proposed Final Order filed.
PDF:
Date: 08/31/2006
Proceedings: (Petitioner`s Proposed) Final Order filed.
Date: 07/18/2006
Proceedings: CASE STATUS: Hearing Held.
PDF:
Date: 07/11/2006
Proceedings: Petitioner, Hernandez Enterprises, Inc.`s Pre-hearing Stipulation filed.
PDF:
Date: 07/07/2006
Proceedings: Department of Financial Services, Division of Workers` Compensation Pre-hearing Statement filed.
PDF:
Date: 05/30/2006
Proceedings: Notice of Service of Department of Financial Services` First Request for Production to Petitioner filed.
PDF:
Date: 04/28/2006
Proceedings: Order of Pre-hearing Instructions.
PDF:
Date: 04/28/2006
Proceedings: Notice of Hearing (hearing set for July 18, 2006; 1:00 p.m.; Jacksonville, FL).
PDF:
Date: 04/17/2006
Proceedings: Response to Petition for Attorney`s Fees and Costs filed.
PDF:
Date: 03/27/2006
Proceedings: Initial Order.
PDF:
Date: 03/23/2006
Proceedings: Affidavit of Attorneys` Fees and Costs filed.
PDF:
Date: 03/23/2006
Proceedings: Petition for Award of Attorneys` Fees and Costs (formerly DOAH Case No. 04-1174) filed.
PDF:
Date: 03/23/2006
Proceedings: Notice of Filing; Respondent`s Petition for Award of Attorneys` Fees and Costs and Affidavit of Attorneys` Fees and Costs filed.

Case Information

Judge:
HARRY L. HOOPER
Date Filed:
03/23/2006
Date Assignment:
03/27/2006
Last Docket Entry:
01/24/2007
Location:
Jacksonville, Florida
District:
Northern
Agency:
Department of Financial Services
Suffix:
F
 

Counsels

Related Florida Statute(s) (8):