CITY OF MARGATE, APPELLANT,
v.
GREAT SOUTHWEST FIRE INSURANCE COMPANY AND NATIONAL CASUALTY INSURANCE COMPANY, APPELLEES
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The City of Margate appealed an order dismissing its third-party action against its liability insurers to recover legal fees it paid to a former city commissioner for his criminal defense. The court affirmed the dismissal, holding that criminal indictments are not covered claims under public official liability insurance policies.
Legal fees arising from criminal actions are not covered under public official liability insurance policies. The policies apply only to civil claims of third parties, and an insured's criminal indictment does not constitute a claim under the policies.
[1] Public official liability insurance policies covering claims arising from wrongful acts do not cover attorney's fees incurred in the defense of criminal actions.
[2] An insured's criminal indictment does not constitute a 'claim' under a public official liability insurance policy that applies to civil claims of third parties.
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Join FLexlaw to unlock all legal intelligence“claims for attorney's fees arising from criminal actions are not covered under the liability insurance policies”
The court's holding on the central issue of whether criminal defense fees are covered
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Join FLexlaw to unlock all legal intelligenceThe City of Margate and Jack Tobin, a former city commissioner, were both insureds under public official liability policies issued by Great Southwest …
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RIVKIND, LEONARD, Associate Judge.
Appellant, City of Margate (City), files this appeal from an order dismissing with prejudice its third party action against appellees, Great Southwest Fire Insurance Company (Great Southwest) and National Casualty Insurance Company (National), for indemnity of legal fees owed to a former city commissioner, Jack Tobin (Tobin). On the authority of Lomelo v. City of Sunrise, 423 So. 2d 974 (Fla. 4th DCA 1982), rev. dismissed, 431 So. 2d 988 (Fla. 1983), the trial court had previously entered a partial summary judgment holding that Tobin was entitled to legal fees from the City for his successful defense of criminal charges of accepting unlawful compensation while serving as a city commissioner. The City’s liability to Tobin for his legal fees is not an issue on appeal.
The City and Tobin were both insureds under public official liability policies issued by Great Southwest and National. The language of the policies is substantially identical and covered claims made against the insureds as a result of wrongful acts by the insureds in the discharge of their duties. The trial court, in denying coverage for Tobin’s legal fees, was persuaded by County of Accomack v. Forum Insurance Co., No. 85-1609 (4th Cir. Jan. 21, 1986), an unpublished federal court decision which interpreted a similar liability policy. In Accomack it was held that the provisions of the policy applied only to civil claims of third parties and that an insured’s criminal indictment was not a claim under the policy. We agree with the decision in Accomack and therefore conclude that claims for attorney’s fees arising from criminal actions are not covered under the liability insurance policies.
AFFIRMED.
DOWNEY and ANSTEAD, JJ., concur.
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Mitchel v. Cigna Prop. & Cas. Ins. Co., 625 So. 2d 862 (Fla. 3d DCA 1993)…y or nonmonetary restitution. . The state claimed some $34,000.00 in damages. . Mitchel does not claim that the policy covers the costs, fine or attorney's fees involved in the criminal action. See City of Margate v. Great Southwest Fire Ins. Co., 539 So. 2d 1181 (Fla. 4th DCA 1989). . The carrier does not deny that the payment falls within the coverage itself. See supra note 1. . It certainly makes no difference that the "victim” is the Florida Department of Natural Resources, which controls the property,…
Authorities Cited
- Lomelo v. City OF Sunrise, 423 So. 2d 974 (Fla. 4th DCA 1982)