Christopher Sabater and law clerk, Nikolos Reinson (Miami, FL) (Property Damage) obtained Partial Summary Judgment in the State Court of Miami Dade County, Florida. Plaintiffs were seeking to recover attorney’s fees/costs against Defendant on a paid property claim.
The Plaintiffs filed suit against the carrier for breach of contract, claiming that they sustained property damage after Hurricane Irma. The carrier investigated the claim and opened coverage for the property damage. During litigation, the Plaintiffs and the carrier almost settled the claim. However, before the settlement was finalized, the carrier became insolvent, and the claim was taken over by Florida Insurance Guarantee Association (“FIGA”).
The Defense argued that the Plaintiffs’ claim was covered, and FIGA did not deny the claim. Therefore, this type of claim would not entitle Plaintiffs to recoverable attorney’s fees/costs. Section 631.70 of the Florida Statutes provides that attorneys’ fees shall not be applicable to any claim presented to FIGA, except where FIGA denies a covered claim by affirmative action other than delay. Moreover, FIGA does not stand in the shoes of prior insolvent carriers. FIGA is a separate entity that can choose to bind itself to the actions of the prior carrier or can make its own defense when it takes over a claim. A Plaintiff cannot bind FIGA to the actions of a prior insolvent carrier simply because FIGA gets substituted as the party defendant.
The court granted the motion and entered partial judgment in favor of the Defense.