Florida Appeals Court Denies Homeowners' Claim for Legal Fees in Hurricane Ian Insurance Dispute

In an opinion issued on October 16, Florida’s Sixth District Court of Appeal affirmed a lower-court ruling that two Lee County homeowners, Susan Reed and Kent Lonngren, were not entitled to recover attorney fees and interest from state-backed Citizens Property Insurance Corporation. After Hurricane Ian damaged their home in October 2022, Citizens initially paid $11,101.19 and later honored a $157,727 appraisal award. The homeowners sued, claiming the insurer’s payment constituted a confession of judgment, but the trial judge found Citizens had complied with the policy and appraisal process.

The appellate panel, writing for a unanimous three-judge bench, held that the confession of judgment rule does not apply when the insurer acts in good faith and follows contractual procedures. The decision leaves Citizens’ payment of the appraisal award and the denial of legal-fee reimbursement intact.