Brian M. Otero delivers breaking news: an inventive but baseless claim for attorneys’ fees arose following an insurer’s insolvency, leading to a strong courtroom defense and clean dismissal.

The plaintiffs had settled with FSIC before it went insolvent, but never received payment from FSIC – including the attorneys’ fees detailed in the settlement. FIGA stepped in, paid the indemnity portion to the insureds, and rightfully declined to pay fees they weren’t legally bound to honor. Plaintiffs’ counsel attempted to keep the case alive and pursued recovery of the fees by substituting FIGA as the defendant.

Our motions to dismiss highlighted prevailing Florida precedent: unless FIGA affirmatively denies coverage, it is not liable for statutory attorneys’ fees, even if agreed to by the insolvent carrier as part of a settlement prior to insolvency. The judge sided with us, ultimately agreeing that no valid cause of action existed and dismissing the case with prejudice.

Congratulations to Brian and the Walton Lantaff team for their dedicated efforts towards preserving justice.