Florida Insurance Guaranty Association v. Synergy Contracting Group, Inc., a/a/o Arlette Schmidt
The Second District reversed a judgment compelling FIGA to pay the $20,000 attorney's fee component of a pre-insolvency settlement agreement. Because attorney's fees were not within the coverage of the underlying homeowners policy, that obligation is not a statutory 'covered claim' under section 631.54(4) that FIGA must pay. The court also held that the insured or its assignee bears the burden of proving the amount sought is a covered claim and cannot carry that burden by speculating that a direct payment to counsel was merely a convenience.
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