Master Dry Out, Inc., a/a/o Elba Abijana v. State Farm Florida Insurance Company
An assignee restoration contractor settled its breach-of-contract suit against State Farm, dismissed the case, and then sought attorney's fees under section 627.7152(10)(a), arguing the settlement was the functional equivalent of a confession of judgment. The Second District affirmed the denial, holding that a pre-suit/pre-trial settlement in which the insurer admitted no liability is not a 'judgment obtained' — defined by section 627.7152(1)(e) as 'damages recovered' — and therefore does not trigger the AOB fee-shifting provision.
Key facts
- Master Dry Out, Inc., an assignee restoration contractor, sued State Farm Florida Insurance Company for breach of contract regarding property damage repairs.
- The parties settled their dispute before trial with State Farm admitting no liability, and Master Dry Out dismissed the case.
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Why it matters
This is an early appellate construction of the attorney's fee provision of Florida's AOB statute, section 627.7152(10), and it forecloses the argument that the common-law confession-of-judgment doctrine imports into… — full analysis with a trial
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