11th Circ. Revives Apartment Rental Agency's Coverage Suit

Law360 (July 31, 2020, 7:57 PM EDT) -- The Eleventh Circuit has said that a lower court erred in its ruling that AEGIS Electric & Gas International Services Ltd. has no duty to defend its policyholder, ECI Management LLC, against a class action accusing the apartment management company of wrongfully withholding tenants' security deposits.

In a split opinion Thursday, a three-judge panel held that while AEGIS may not need to defend ECI against allegations of withholding tenants' security deposits, the insurer is obligated to pay for attorney fees in the class action against its policyholder.

"Under Georgia law, attorneys' fees, even where recoverable, are not typically included within the...

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