In Indiana Lumbermens v. Pennsylvania Lumbermens, 38 Fla. Law Weekly D562a (Fla. 4DCA 2013), the Florida Fourth District Court of Appeal held that an insurance company could recover attorney’s fees pursuant to Florida Statute 627.428 when it as an assignee of its insured prevailed in a lawsuit against another insurance company for breach of contract and failure to defend.
Attorney’s Fee Award Against Insurance Company
Florida Statute 627.428 authorizes a Court to award attorney’s fees to a party that prevails in a lawsuit against an insurance company. In this case, two insurance companies were possibly liable for a claim. Once insurance company resolved the claim while the other insurance company denied the claim. The insurance company that settled the claim obtained an assignment of rights to go after the denying insurance company for damages. The insurance company with the assignment of rights prevailed against the denying insurance company and sought recovery of its attorney’s fees. The Fourth District Court of Appeal did not find any bar to recovering attorney’s fees when the claimant and prevailing party is also an insurance company. As an assignee, the insurance company fell within the class entitled to recover attorney’s fees when it prevailed against an insurance company.
Related Topics: Florida Insurance Law; Assignment of Benefits, Recovery of Attorney’s Fees
