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FLORIDA INSURANCE GUARANTY ASSOCIATION, Appellant, vs. GLORIA J. KELLY and TWALA B. KELLY, Appellees.

6 Fla. L. Weekly Supp. 399a

Insurance — Prejudgment interest — Error to award prejudgment interest on attorney’s fee awards against Florida Insurance Guaranty Association

FLORIDA INSURANCE GUARANTY ASSOCIATION, Appellant, vs. GLORIA J. KELLY and TWALA B. KELLY, Appellees. 11th Judicial Circuit in and for Miami-Dade County, Appellate Division. Case No. 96-488 AP. Lower Court Case No. 90-7526 CC-25. Amended opinion filed February 26, 1999. Original Opinion filed May 8, 1998 (Off. Rec. Bk. 18103Pg3735). On appeal from the County Court, of Miami-Dade County, Shelley J. Kravitz, Judge. Counsel: John P. Joy, Walton, Lantaff, Schroeder & Causon, for Appellant. Mark S. Sussman, and Michael Lechtman, for Appellees.

(Before HENRY H. HARNAGE, WILLIAM JOHNSON, and GILL S. FREEMAN, JJ.)

AMENDED OPINION ON RELEASE OF STAY OF MANDATE

[Original Opinion at 5 Fla. L. Weekly Supp. 576a]

(WILLIAM JOHNSON, J.) This appeal is from a Final Judgment awarding attorney’s fees, costs, and prejudgment interest to the Kellys and against the Florida Insurance Guaranty Association. Three issues were raised on appeal. We find no error on two of the issues but we do find error on one issue namely “whether the trial court committed reversible error in awarding prejudgment interest against FIGA in violation of §631.57(1)(b), Florida Statutes (1995).”

Section 631.57(1)(b), Florida Statutes (1995), reads as follows:

“In no event shall the association be liable for any penalties or interest.”

This provision has been interpreted to preclude the award of prejudgment interest on attorney fee awards against FIGA. Florida Insurance Guaranty Association v. Jacques, 643 So. 2d 101 (Fla. 4th DCA 1994); Florida Insurance Guaranty Association v. Gustinger, 390 So. 2d 420, 421 (Fla. 3d DCA 1980).

Since it is clear that prejudgment interest is not awardable against FIGA, we strike all awards of interest accruing prior to August 16, 1996, the date of entry of the Final Judgment on appeal. Otherwise, the judgment of August 16, 1996, is hereby AFFIRMED.

Appellate attorney’s fees are hereby GRANTED.

AFFIRMED in part, REVERSED in part.

________

ORDER ON RELEASE OF STAY OF MANDATE

This Court, on July 13, 1998, granted Appellant’s Motion for Stay Issuance of Mandate, pending review by the Third District Court of Appeal. FIGA’s Petition for Writ of Certiorari was denied by the Third District on October 7, 1998. Therefore, the Stay of Mandate is hereby released. This cause is remanded to the lower court to determine the amount of attorney’s fees to be awarded for this appeal. (HARNAGE and FREEMAN, JJ., concur.)

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