In Coverage Case, Florida Court Expansively Construes Costs To Include Attorney's Fees

In GEICO General Ins. Co. v. Hollingsworth, 2015 WL 376406 (Fla. 5th DCA January 30, 2015), the Fifth District Court of Appeal considered whether GEICO's automobile insurance policy provided additional coverage for attorney's fees awarded against the insured pursuant to section 768.79, Florida Statutes. The plaintiff had served a proposal for settlement to the insured, which was not accepted. Because plaintiff's judgment exceeded his proposal by more than 25%, the trial court awarded attorney's fees to the plaintiff. The trial court later held that the attorney's fee judgment was covered by GEICO's policy. In addition to the policy limit for damages, the policy covered "all court costs charged to an insured in a covered lawsuit."

The Fifth District agreed that the attorney's fee judgment was covered. Based on other DCA precedent, involving sanctions awarded against insureds, the Fifth District held that plaintiff's attorney's fees constituted "costs" for purposes of GEICO's policy.

The Fifth District found that the term "costs" was ambiguous, and it faulted GEICO for not providing a definition. But, under Florida law, a term is not ambiguous simply because there is...