TAMPA – Quintairos, Prieto, Wood & Boyer, P.A. (QPWB) Tampa Partner Dorothy DiFiore, with key appellate brief assistance from Tampa Partner Maggie Colter, secured an appellate reversal of a final judgment that required the Florida Insurance Guaranty Association (“FIGA”) to pay $20,000 in attorney’s fees to a claimant’s counsel in a first-party insurance case. This significant decision reinforces that FIGA’s statutory responsibilities do not extend to liability for a claimant’s attorney’s fees incurred pre-insolvency and we are pleased that our defense team successfully protected FIGA from unauthorized liability.
Overview of the Case
The litigation arose following a first-party insurance claim presented against an insurance carrier that subsequently became insolvent. Prior to insolvency, the parties agreed to settle the dispute for a total amount of $90,000 that was to be split into two checks, one of which was for $20,000 to be paid directly to the claimant’s counsel for attorney’s fees and costs. Before the carrier could tender payment, however, it was declared insolvent, and FIGA was substituted as the defendant in the underlying litigation. The claimant then sought to recover the full $90,000 settlement amount from FIGA. In response, FIGA assumed responsibility for the insolvent carrier’s covered claims under the policy, but disputed liability for the $20,000 attorney’s fee component of the settlement. Specifically, FIGA maintained that a payment made directly to claimant’s counsel for attorney’s fees and costs does not constitute a “covered claim” within the meaning of the statutes governing FIGA’s liability. The trial court rejected that position and ordered FIGA to pay the $20,000. On appeal, however, the Second District Court of Appeal reversed, holding that the $20,000 settlement payment attributable to attorney’s fees and costs did not qualify as a covered claim for which FIGA could be held liable.
Key Difference-Makers
Claims Made Against Our Client
Opposing counsel argued that FIGA was obligated to pay the $20,000 attorney’s fee component of the pre-insolvency settlement agreement. At trial, opposing counsel persuaded the court to rely on case law that had been expressly disapproved by the Florida Supreme Court to hold FIGA responsible for the fee portion.
Defense Strategy
The defense strategy centered on strict statutory interpretation and clear contractual analysis. The defense demonstrated that the lower court had relied on invalid precedent and highlighted that the language of the underlying release designated the $20,000 payment as attorney’s fees and costs owed by the insolvent carrier rather than a covered claim under the insurance policy. By establishing that no evidence existed showing the fee component was covered under the policy, the defense established that the $20,000 settlement payment fell outside the statutory scope of what FIGA is authorized to pay.
Impact on Final Outcome
The strategic appellate approach resulted in a full reversal of the lower court’s ruling. The Second District Court of Appeal concluded that the fee component was not a covered claim, relieving FIGA of any obligation to pay the $20,000 payment.
Unique Aspects of the Case
Prior to this ruling, the Second District Court of Appeal had steadfastly refused to issue a written opinion on this exact issue despite having multiple cases before it. In the interim, the Third, Fourth, and Sixth District Court of Appeals had ruled in favor of FIGA on similar matters. This victory established the Second District Court of Appeal’s first written opinion on the topic, issued as a plurality opinion where all three panel judges reached the same conclusion through distinct rationale, aligning the district’s ultimate outcome with neighboring appellate courts.
Predicting the Future
This victory reinforces QPWB’s appellate capabilities and firm command of insurance law. By securing a published opinion in the Second District Court of Appeal, the decision establishes crucial precedent that protects statutory guarantee associations from paying non-covered pre-insolvency fee obligations while leaving policyholders’ actual property recoveries intact.
Key Actions in This Case
- Statutory & Contractual Analysis: Analyzed the release language to prove the fee component represented statutory obligations of the insolvent carrier rather than covered policy losses.
- Precedential Correction: Overturned a trial court ruling based on disapproved case law, successfully aligning the Second District Court of Appeal with established statutory authority.
- Appellate Excellence: Authored a persuasive appellate brief and delivered oral argument that prompted the Second District Court of Appeal to issue its first written opinion on this recurring legal issue.
About QPWB
Quintairos, Prieto, Wood & Boyer, P.A. is one of the fastest growing law firms in the United States providing a different focus on what it means to provide responsive service to clients and team members. With a national presence of 60 offices and a comprehensive scope of over 130 practice areas, QPWB delivers legal representation in litigation, regulatory, and corporate matters to a diverse range of industries. This scope and rapid expansion has attracted unique legal talent from all different backgrounds and experiences which has made them the largest minority-owned law firm in the country.