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Florida appeals court rejects sanctions in Citizens’ duplicate fee bid
Citizens paid $28,914.12 for Hurricane Irma damage and later more than $212,000, after which policyholders sued again in 2022 and sought $142,500 over disputed settlement proposals.
Citizens Property Insurance sought attorney fees after policyholders filed an amended complaint without permission, but a Florida appeals court affirmed the lower court’s refusal to sanction the insureds and their lawyer.
Insurance Business reports the dispute stemmed from a Hurricane Irma claim under a homeowners policy that ran December 9, 2016 to December 9, 2017. After the insureds reported storm damage on September 21, 2017, Citizens accepted coverage and paid $28,914.12, then paid supplemental sums totaling more than $212,000 following an appraisal demand.
The insureds sued first in March 2019 and again in December 2022, this time seeking $142,500 over disputed settlement proposals from the earlier case. Citizens moved for fees under Section 57.105 of the Florida Statutes, which permits fee awards for claims not supported by material facts or then existing law, but requires a 21 day safety valve after service of the motion.
The appeals court ruled that how Citizens timed its fee notices mattered. After Citizens served an initial safe harbor notice on August 20, 2024 and then served a second, duplicate notice on January 8, 2025, the policyholders dismissed their suit on January 24, within day 16 of the fresh 21 day window, ending Citizens’ sanctions bid under the court’s interpretation of the statute.