CGL Policy Covering Attorney’s Fees in Property Damage Claims

Umbrellas

David Adelstein analyzes the case Assurance Co. of America v. Lucas Waterproofing Co., Inc.

December 11, 2018
David Adelstein - Florida Construction Legal Updates

Does a CGL policy cover attorney’s fees and costs in property damages claims, to the extent there is a contractual or statutory basis to recover attorney’s fees? Naturally, you need to review the policies and this is not a clear-cut issue, but there is law to argue under.

A case I have argued in support of CGL policies providing for coverage for attorney’s fees as a component of property damage claims when there is a contractual or statutory basis is Assurance Co. of America v. Lucas Waterproofing Co., Inc., 581 F.Supp.2d 1201 (S.D.Fla. 2008). In this case, the following applied:

  • The policy provided coverage for “those sums that the insured becomes legally obligated to pay as damages of… ‘property damage’….
  • Property damage was defined as “physical injury to tangible property, including all resulting loss of use of that property.”
  • The term damage, in of itself, was not defined in the policy.

Mr. Adelstein may be contacted at dma@kirwinnorris.com



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