No Attys' Fees From Bankrupt Insurer: Fla. High Court

Law360, New York (January 19, 2012, 8:14 PM EST) -- The Florida Supreme Court on Thursday ruled that the Florida Insurance Guaranty Association is not liable for a policyholder's attorneys' fees incurred during a coverage dispute with a now-insolvent insurer.

The state high court affirmed the decision of the appeals court, which had said that because plaintiff Diane Petty's attorneys' fees were not based on a coverage provision of her underlying insurance policy, the fees were not a covered claim that FIGA must pay under Florida law.

“There is a clear difference between an obligation to...
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