Attorney's Fees Awarded in Florida After Appraisal, Suit, Payment.

    Universal Property and Casualty Insurance Company issued a Homeowner's Insurance Policy to Robert and Nancy Lewis in Florida.  Hurricane Wilma struck the Lewis's home in October, 2005, causing damage.  In 2006, over a year later, Universal contested Coverage.  Mr. and Mrs. Lewis hired a lawyer who sent Universal a courtesy copy of a draft complaint for First-Party Bad Faith. 

    Universal then reportedly demanded an appraisal.  The Lewises filed their lawsuit.  Without awaiting a Trial Court Order or Judgment confirming the Appraisal Award, "it is undisputed that the insurer paid the claim.  Florida law squarely holds that 'payment after suit was filed operates as a confession of judgment ... entitling [the insured] to attorney's fees.'"  Lewis v. Universal Property & Casualty Ins. Co., 34 Fla. Law Weekly D1104 (Fla. 4th DCA Case No. 4D08-2516, Opinion Filed June 3, 2009)(subscription required), link to the official report from the Court's web site here.  The quoted language is found on page 4 of the slipsheet opinion.  The Fourth District therefore held that "the insureds were entitled to an award of section 627.428 attorney's fees" in that case.  Id. at 5.

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Comments

[Gene Murray]

Good article. if Universal
had been more pro-active in explaining the appraisal option to its
insureds, asked them if they wanted to proceed with appraisal, and then
arranged to set it up, then this decision might have gone in Universal's
favor.