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What's Hot in Workers' Comp

District Court Holds that Reservation Over Attorney Fee Entitlement May Not Toll Statute of Limitations

Murphy v. Polk Cnty. Bd. of Cnty. Commissioners, Fla. 1st DCA, No. 1D2022-2752, Sept. 3, 2025

October 1, 2025

by Blake J. Hood

It seems there is no statute of limitations on the First District Court of Appeals’ issuing opinions interpreting the actual statute of limitations under Florida’s Workers’ Compensation Act. In yet another case addressing the time limitations for filing petitions for benefits under Florida Statutes Section 440.19, the First DCA held that a party’s purported reservation over attorney’s fees as part of a voluntary dismissal, before an employer/carrier accepts compensability of a claim or compensability is adjudicated on the merits, does not toll the statute of limitations. 

Generally, Florida’s Workers’ Compensation Act bars filing any petition for benefits beyond two years from the date the employee became aware that he suffered an accidental work-caused injury. A pending, legally sufficient petition for benefits filed within that two-year period, however, tolls that statute's running. 

In Murphy, the claimant alleged a work-related accident on September 10, 2016. The employer/carrier initially authorized some medical appointments but ultimately denied compensability of the claim in its entirety. The claimant then filed his first petition for benefits, to which the employer/carrier responded with a full denial and furnished no further benefits. The claimant then filed a notice of dismissal of the first petition for benefits, but he reserved jurisdiction over claims for entitlement to and the amount of attorney’s fees and costs.

Approximately two years later, the claimant filed a second petition for benefits, requesting indemnity benefits for the same accident date. The employer/carrier responded with a denial based on the expiration of the two-year statute of limitations. 

The employer/carrier then filed a motion asking the Judge of Compensation Claims to require the claimant to file a verified motion for attorney's fees and costs relating to the first petition for benefits under Rule 60Q-6.124(3), (5), FLA. ADMIN. CODE. The judge granted the motion, but the claimant failed to file any such verified motion for attorney's fees and costs. Consequently, the judge dismissed the claim for fees and costs from the first petition for benefits.

The claimant went on to file a third petition for benefits and a fourth petition for benefits, both of which were again denied by the employer/carrier on statute of limitations grounds. The claimant voluntarily dismissed the second and third petitions for benefits, and the judge dismissed the fourth petition for benefits on the same grounds, which prompted the appeal to the First District Court of Appeal.

The Murphy majority framed the central question as whether a claimant’s petition for benefits that is later voluntarily dismissed without the employer/carrier accepting compensability and providing benefits, or a judge adjudicating entitlement to compensation or medical benefits, continues to toll the statute's running if the claimant reserves jurisdiction over entitlement to attorney’s fee as part of the dismissal.

Writing for the majority, Judge Tanenbaum answered the question by analyzing the nature of attorney’s fees. He likened fees under Section 440.34 to a prevailing-party fee provision in civil litigation and concluded that a claim for workers’ compensation attorney’s fees is “ancillary to the claim” for benefits. In this case, once the claimant dismissed his first petition for benefits without securing any benefits or obtaining a successful adjudication on the merits, “there never was going to be a resolution or disposition of a claim for benefits that would give rise to an entitlement to the fees… .” Essentially, since the claimant could not possibly show that he secured benefits pursuant to the first petition for benefits, the fee claim in that petition for benefits was a nullity, even though he reserved jurisdiction over fee entitlement. Because the fee claim in the first petition for benefits remained “ancillary” and “collateral,” rather than one that had “ripened” through the securing of benefits or an adjudication on the merits, and two years from the accident date had elapsed before another petition for benefits was filed, all petitions for benefits after the first were time barred. 

Judge Thomas wrote a concurrence in which she agreed with the result only but not with the majority’s reasoning. For Judge Thomas, the majority’s comparison of fees under 440.34 to civil litigation fees was misplaced. She contended that whether a petition for benefits is “pending” is a purely jurisdictional question and should not require a fact-finding analysis to determine if a claim for fees has merit. In other words, “[w]hether the fee claim has merit or the claimant was a ’prevailing party’ has no bearing on the ’pending’ status of fee claim (because it is jurisdictional) or germane to the effect of a pending fee entitlement claim on the SOL.”

In contrast to the majority’s framing, Judge Thomas stated that the court’s disposition did not require analysis of whether a pending claim for entitlement to attorney's fees tolls the statute “because there was no pending claim for entitlement to attorney's fees when the second petition for benefits was filed well over two years after the accident and any indemnity or medical benefits were provided.” She highlighted prior case law (also cited by the majority), holding that once a petition for benefits is dismissed in its entirety (including any claims to fees and costs), it is regarded as if it were never filed. She then pointed to the procedural fact that the judge dismissed the first petition for benefits after granting the employer/carrier’s motion to compel him to file a verified motion for fee, which the claimant did not do. At that point, the first petition for benefits was dismissed in its entirety and treated as if it were never filed. 

Relying on other prior case law, she explained the difference between the concepts of a petition for benefits’ “pending” status in contrast to the concept of “tolling.” Only two tolling events exist under 440.19; the payment of indemnity benefits or the furnishing of medical care. Whether a petition for benefits is “pending” is simply a question of whether all issues raised by the petition for benefits are fully resolved or otherwise disposed of; once they are, the petition for benefits is treated as though it were never filed. In Judge Thomas’s view, since the claimant’s first petition for benefits was dismissed in its entirety and the second petition for benefits was filed more than two years after the accident, it and all subsequent petitions for benefits were untimely. 


 

What’s Hot in Workers’ Comp, Vol. 29, No. 10, October 2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2025 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

First DCA Reverses Excessive Jury Award Unsupported by the Evidence

In December 2019, the plaintiffs filed a claim with Universal for damages caused by a water and sewage back up through the plumbing system and existing through multiple fixtures including the washing machine drain, kitchen sink, dishwasher, bathtub and toilet. Universal investigated the claim, issued payment for resulting water damage totaling $7,000.00 in actual cash value ($12,000.00 in replacement cost value). The plaintiffs sought additional benefits for work needed to access the below-slab cast iron plumbing system due to the failure of the system from rust, deterioration, corrosion and breaks in the line. Universal denied any additional benefits for access. In 2021, the plaintiffs filed suit. During litigation, Universal sent a plumber to inspect the home and the plumber concluded the pipes were clogged but could be cleaned. The plaintiffs’ plumber testified that the plumbing system needed to be replaced due to holes and openings in the pipes. The plaintiffs introduced two estimates prepared by Triad Restoration services totaling $79,680.22 in replacement cost value and $50,219.97 in actual cash value and an executed contract with another company for repairs with the amounts of repair redacted. Since the insurance policy did not provide coverage for repair or replacement of the plumbing system, the jury only had to decide whether the plumbing system needed to be replaced, and if it did, Universal would owe for the access costs; the jury verdict form required the jury to determine both the replacement cost value and actual cash value amounts. The jury asked if it had to rely on the Triad estimates for their amounts. The trial court advised the amount awarded had to be based on the evidence presented at trial and the law given by the trial court. The jury awarded $335,000.00 in replacement cost value or $305,000.00 in actual cash value. Universal motioned for a new trial arguing the amount awarded was unsupported by the evidence and then moved for remittitur. The trial court denied both motions and this appeal followed. The court found that while a jury’s verdict should only be disturbed with caution and discretion, the trial court must give the properly challenged award close scrutiny and determine whether it bears a reasonable relation to the damaged provided, is supported by the evidence, and could have been reached in a logical manner by reasonable means §768.74(3), (5)(d)-(e), Fla. Stat. The court found the trial court did consider the statutory requirements at the hearing on Universal’s remittitur motion and was concerned about a reasonable relation to the amount of damages proved and injury suffered and whether the award was supported by the evidence, but ultimately denied the motion, reasoning that the jury had been properly instructed to fairly and adequately compensate the plaintiffs. The court noted the only evidence providing the basis for the jury verdict was Triad’s estimates and those valued the plaintiffs' claimed loss at $79,680.22 in replacement cost value and $50,219.97 in actual cash value; no valuation evidence reasonably supported the jury verdict. The plaintiffs argued that the jury was entitled to consider more than the estimates, but the court conveyed the evidence provided did not give the jury a way to reach the amounts they awarded. The court was also not swayed by the plaintiffs’ argument regarding inflation and later price increases, but the court noted that no evidence via the contract, nor testimony regarding increase in labor, material, fuel or construction costs were entered into the record.  The court concluded the jury may draw reasonable inferences from the evidence, but it may not supply a damages number by speculation. The court did not find any of the plaintiffs’ remaining argument persuasive either. The court reversed the denial of Universal’s remittitur motion and motion for new trial as to damaged and remanded the case. The court ended its opinion with advising the trial court must determine whether replacement cost value or actual cash value is the property measure of damages under the policy and order remittitur in an amount consistent with that determination and the evidence.

Thought Leadership

United State District Court for the Middle District of Florida finds Evidence of Replacement Cost Value is Admissible and Recoverable Even When Repairs Have Not Been Made

The plaintiff filed a claim for damage as a result of Hurricane Ian. It claimed damages were over $24 million, but the carrier accepted partial coverage and paid $8,307.49 for secondary components. The carrier found hurricane damage to the building, but it was below the insurance policy’s $3.6 million deductible. The plaintiff sued for breach of the insurance policy. The carrier argued in a motion for summary judgment that plaintiff could not recover replacement cost value (RCV) because the property repairs had not been effectuated. The policy provided for RCV, but only after the repairs were completed. The carrier argued that because the repairs were not completed, the plaintiff was not entitled to RCV damages. The plaintiff argued the carrier could not withhold the actual cost value (ACV) due, which was the main allegation of the lawsuit, then fault it for not making the repairs to unlock the RCV. The United States District Court for the Middle District of Florida rejected the carrier’s argument, finding that when an insurer allegedly breached the policy by withholding coverage, it could not hide behind a repair-contingent provision to block the insured from RCV damages at trial. The court found the issue to be whether the contractual language designed to preclude certain coverage until after repairs are completed barred an insured from seeking those damages at trial when repairs were not complete. The court noted the Eleventh Circuit had not resolved this issue and neither side pointed to a definitive answer from the Florida Supreme Court. The court reasoned that it must look to the Sixth District Court of Appeal (6th DCA), which is the court which would have heard this case if it was in state court. The court noted the 6th DCA recently addressed this issue in Universal Prop. & Cas. Ins. Co. v. Rodriguez, 427 So. 3d 676 (Fla. 6th DCA 2026). The Rodriguez Court found that a breach of contract action is designed to adjudicate not only whether the contract was breached, but also evaluate the damages incurred had the breach not occurred, which the Rodriguez court found to be recovery of the RCV. This court also noted basic Florida contract principles compelled the same result, as a material breach frees the nonbreaching party to suspend its own performance and can demand the full benefit of its bargain, including RCV damages. Finally, the court found the distinction between a full denial and partial denial did not compel a different result. It found the policy required the carrier to acknowledge coverage and pay ACV for all covered damages, and the failure to do that is a material breach, entitling the insured to all of the damages available under the contract, which included the RCV.

Thought Leadership

Appeals Court Reverses Trial Court Order Awarding Attorney’s Fees Due to Lack of Evidence to Support Fee Awarded

The Fourth District Court of Appeal reversed the trial court’s order awarding appellate fees to People’s Trust Insurance Company based upon a lack of evidence to support the attorney’s fee award in RM & Assocs. Consulting, Inc. v. People's Trust Ins. Co., 2026 Fla. App. LEXIS 4654 (Fla. 4th DCA 2026). People’s Trust was the insurer of a residential property that had sustained water damage. RM & Associates Consulting was hired by the homeowner to perform mitigation services at the property. The homeowner assigned post-loss benefits to RM and RM subsequently filed suit against People’s Trust alleging that it had not been paid the money it was owed for the mitigation services. People’s Trust defended the lawsuit on the ground that the policy required the insured to notify the insurer before authorizing repairs so People's Trust could elect to use its preferred contractor. Because the owner did not comply with that provision, People's Trust asserted its liability was limited to the amount that its preferred contractor would have charged for the work, which People's Trust contended was $2,000. People's Trust paid that amount to RM before RM filed suit. People’s Trust filed a motion for summary judgment which was granted. RM appealed the summary judgment ruling and the ruling was upheld by the Fourth District Court of Appeal. The appellate court also granted People’s Trust’s entitlement to appellate attorney’s fees, subject to the trial court’s determination of the amount of fees, based upon an offer of judgment made by People's Trust. On remand, the trial court held an evidentiary hearing to determine the amount of attorney’s fees People’s Trust was entitled to. At the hearing, People’s Trust presented testimony from it’s fee expert, supervising trial counsel and appellate counsel. People’s Trust sought recovery of $24,866.17 for work performed by appellate counsel. The request primarily consisted of work performed in preparation of the answer brief. The fee expert testified that more than ninety hours spent preparing the answer brief was reasonable given the complexity and significance of the underlying issue. The appellate court found that the fee expert’s testimony fell short of meeting the necessary standard of demonstrating that the hours expended were necessary. The appellate court found that the billing records did not serve to cure the deficient testimony, as the billing records did not contain adequate details regarding the specific tasks performed. Rather the records contained entries such as “answer brief” which the appellate court found to be insufficient. The appellate court noted that neither the fee expert or counsel addressed how the prior research and briefing in the parallel litigation informed the work in the instant matter. The appellate court noted this was significant in that a court's attorney's fees award must exclude excessive, redundant, or otherwise unnecessary hours, citing Florida Patient's Compensation Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985). Based upon the record failing to support the finding of the trial court, the 4th DCA remanded the case to the trial court for a reconsideration and redetermination of reasonable appellate attorney’s fees supported by competent substantial evidence. The 4th DCA reiterated that the fee expert’s focus on the quality of the work and the importance of the work to People’s Trust did not make up for the perceived deficiencies in the position that spending over ninety hours on a single answer brief was reasonable. Whether moving for attorney’s fees or challenging the amount of fees being sought by an opposing party, practitioners should be mindful of the evidence being used to support the claims being made. Parties should pay close attention to whether the hours being sought may be impacted by prior litigation either party may have engaged in. A party must be prepared to address how prior litigation efforts did or did not impact the amount of hours being claimed in current litigation. Lastly, billing records must be sufficiently detailed so as to support any potential future fee claim.

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