Tourists with printed cards of Airbnb logo. Photo: AlesiaKan/Shutterstock.com

Airbnb and the City of Miami Beach can’t seem to find a consensus on the particulars of an agreement hashed out in federal court.

A statement provided by Miami Beach on its settlement with Airbnb in a suit over the city’s short-term rental regulations said a $380,000 payment detailed in the agreement is being made explicitly to cover the cost of attorney fees accrued during the litigation.

“Airbnb, recognizing that they were going to unequivocally lose the federal lawsuit against the City of Miami Beach, agreed to pay the municipality $380,000 for its attorney fees expended in defense of their frivolous federal lawsuit,” the statement said, adding the company would be complying with Miami Beach rules that require the site to display the resort tax account and business tax receipt numbers of hosts looking to rent out properties.

“Airbnb will be prohibited from displaying any listing that does not have these numbers, and will be subject to fines and penalties for failure to comply with the disclosure requirement of the ordinance,” the city said.

The statement’s characterization of Airbnb’s lawsuit as frivolous was shared in accompanying remarks by Miami Beach Mayor Dan Gelber.

“Obviously this was a frivolous lawsuit and it was wise of Airbnb to pay our legal fees as part of its resolution,” Gelber said. “They will now have to comply with the city ordinance.”

Read the stipulations of the settlement:

The city’s description of the $380,000 payment’s purpose is seemingly at odds with the stipulations of the case’s dismissal and settlement. Although the settlement requires Airbnb to provide the money to Miami Beach, its purpose is said to be up to Miami Beach’s discretion. The filing said the money may be used ” to educate residents about home-sharing rules and/or for the enforcement of” the city’s rules surrounding short-term rentals.

Elsewhere in the document Airbnb’s lawsuit is said to be dismissed without prejudice and “ with each party to bear its own attorney’s fees and costs,” contrasting with Miami Beach’s depiction of the payment almost as a sanction against Airbnb for filing a frivolous lawsuit.

Miami Beach’s lead attorney, Carlton Fields shareholder Richard Ovelman, did not immediately return requests for comment.

Melissa Berthier, Miami Beach’s assistant director of communications, reaffirmed the city’s previous statement on the settlement when pressed for clarification on the disparity.

“The money paid by Airbnb was to reimburse the city’s attorney’s fees in defense of this frivolous lawsuit,” Berthier said in an email.

Airbnb rebutted Miami Beach’s assertion that the settlement specifically provides for the money to be used as compensation for the city’s legal costs.

“The characterization Airbnb will directly be paying attorney’s fees is incorrect,” the company said in a statement, citing paragraph 10 of the settlement’s stipulations. “The settlement states the city is able to use its money to its discretion.”

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City of Miami Beach Challenged for Excessive Fines in Suit Over Short-Term Rental Ordinance