Law Clerk
In T&G Locksmith Corp. et al. v. Granada Insurance Co., 50 Fla. L. Weekly D1493 (Fla. 3d DCA 2025), Florida’s Third District Court of Appeal reaffirmed that a voluntary dismissal, when paired with clear concessions, can function as a confession of judgment — triggering the insured’s right to attorney’s fees.
The insurer filed a declaratory judgment action seeking a ruling that it owed no coverage under a commercial general liability (CGL) policy tied to a motor vehicle accident. The insureds responded, submitted discovery, and eventually admitted in Requests for Admission that they had no coverage under the policy.
Eleven months after those admissions, the insurer voluntarily dismissed the case. The insureds then sought prevailing-party attorney’s fees. The trial court denied the motion, but the Third DCA reversed — holding that the combination of:
- The discovery responses affirming no coverage; and
- The voluntary dismissal after securing that position;
…constituted a functional confession of judgment in the insureds’ favor.
The court emphasized that, under these facts, the voluntary dismissal was not a neutral litigation move — it was the acknowledgment of the opposing party’s position and effectively conceded the core issue.
Takeaway: Even in declaratory judgment actions, insurers can’t sidestep fee exposure by simply walking away. Where discovery establishes the opposing party’s position, a strategic dismissal can carry real financial consequences — especially under Florida’s confession-of-judgment doctrine.
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