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HOA Insurer Must Pay Association's Liability for Attorney Fees as the Losing Party

In this case, a homeowners association (HOA) sued two homeowners for alleged violations of the HOA’s bylaws. The lawsuits were initiated under Florida statutes that contain provisions which provide for an award of attorney fees to the prevailing party. The homeowners successfully defended the actions filed by the HOA and the homeowners were awarded attorney fees. The HOA then sought to have their liability insurance carrier indemnify the HOA for the attorney fee judgments. The insurance carrier denied coverage for the attorney fees. The trial court granted summary judgment in favor of he insurance carrier and the HOA appealed.