Insurance
Home›Insurance›Industry & Deals›Florida appeals court limits FIGA’s duty to pay settle…
Florida appeals court limits FIGA’s duty to pay settlement lawyers’ fees
The Fourth District Court of Appeal said FIGA is not required to cover attorneys’ fees even when a settlement payment is labeled “inclusive of attorneys’ fees.”
Florida’s Fourth District Court of Appeal narrowed what the Florida Insurance Guaranty Association (FIGA) must pay under a settlement, ruling that the guaranty fund is not automatically on the hook for attorneys’ fees.
The dispute stemmed from a settlement between FIGA and two policyholders. Their complaint sought attorneys’ fees, and the settlement agreement and release described the payment as “inclusive of attorneys’ fees,” with the money then split into two portions, one for the policyholders and one for their counsel.
FIGA argued that lawyers’ fees fall outside the “covered claims” it is obligated to pay, while the policyholders said the deal required FIGA to pay the full settlement amount, fees included. A Broward County trial court sided with the policyholders and ordered FIGA to pay the entire settlement, including the attorneys’ fees portion, but the appeals court reversed.
The appellate court said its June and July 2026 decisions controlled the outcome and ordered the lower court to vacate the order forcing FIGA to pay the whole amount. It also instructed the court to grant FIGA’s motion to enforce the settlement, noting the decision is not final until the court rules on any timely motion for rehearing.