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Recovery Of Attorney Fees Against CGL Policy Insurer

Recovery of Attorney Fees Against CGL Policy Insurer

The Florida Fifth District Court of Appeal, Mid-Continent Cas. Co. v. Treace, 186 So.3d 11 (Fla. 5th DCA 2015) found that Cross Appellants, James and Angeline Treace (the “Treaces”) were entitled to recover attorney fees against a contractor’s CGL policy. The Treaces contracted for the construction of a residence that was plagued by water damage caused by faulty construction. The trial Court denied the Treaces recovery of attorney fees against Mid-Continent Cas. Co. (“MCC”) under the CGL policy of the culpable contractor. The language in the CGL policy supplementary payment provision stated that MCC will pay “with respect to any claim [it] investigate[s] or settle[s], or any suit against an insured it defends…all costs taxed against the insured in the suit”). In that there was no definition or limiting language of “court costs” in the CGL policy regarding attorney fees, attorney fees were recoverable by the Treaces against MCC. This decision is consistent with that of the Third District Court of Appeal in the Geico General Insurance Co. v. Rodriguez, 155 So.3d. 1163 (Fla. 3rd DCA 2014)

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