Opinion ID: 1760779
Heading Depth: 1
Heading Rank: 1

Heading: Attorney Fees and Costs under Section 627.428

Text: Section 627.428(1) provides: (1) Upon rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy or contract executed by the insurer, the trial court or, in the event of an appeal in which the insured or beneficiary prevails, the appellate court shall adjudge or decree against the insurer and in favor of the insured or beneficiary a reasonable sum as fees or compensation for the insured's or beneficiary's attorney prosecuting the suit in which the recovery is had. (Emphasis added.) That section is part of the Florida Insurance Code. § 624.01, Fla. Stat. (1995). Terms used in that code are set forth in chapter 624, which defines insurer to include every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or annuity. Id. § 624.03 (emphasis added). In looking to section 627.428 to award attorney's fees and costs, the district court stated: Because there is no specific provision of chapter 744 providing for an attorney fee award against a surety in an action on a bond of guardian, we hold that the general attorney fee provision, section 627.428(1), applies in such cases. Nichols, 682 So.2d at 586. In reaching its decision, the district court noted that the Fifth District Court of Appeal had reached a contrary conclusion in Dealers Insurance Co. v. Centennial Casualty Co., 644 So.2d 571 (Fla. 5th DCA 1994)(section 627.428 does not apply to surety of motor vehicle bonds), review denied, 658 So.2d 989 (Fla.1995). The application of section 627.428 to guardianship bonds is an issue of first impression for this Court. We find, however, that the plain language of section 627.428 states that reasonable attorney's fees and costs are to be awarded against an insurer upon rendition of a judgment against the insurer in favor of the insured or beneficiary. Additionally, the term insurer is clearly defined under the Florida Insurance Code to include a surety. See § 624.03. Further, there is no provision governing an award of attorney's fees under chapter 744. Given the absence of another statutory provision governing this issue, we agree with the district court and hold that section 627.428 allows for attorney's fees and costs to be awarded in guardianship bond cases. Cf. DiStefano Constr., Inc. v. Fidelity & Deposit Co., 597 So.2d 248 (Fla.1992) (need not look to section 627.428 when another statute exists to govern award of attorney's fees). We disapprove Dealers to the extent it holds that section 627.428 does not apply to sureties.