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Note: As required by Florida statute, Jim Rathman Chevrolet, Inc. (Principal), a car dealership in Florida, obtained a motor vehicle dealer surety bond from Fidelity and Deposit Company of Maryland (Surety) as required by Florida statute. Troy and Amy Snow (Beneficiary) purchased a defective vehicle from Principal and drew against the surety bond. Surety stipulated to an arbitration award in favor of Beneficiary for damages assessed in the arbitration. Beneficiary sought approval for the award and attorney's fees and costs. The Circuit Court, Whon, Jr., J., approved the damages award, denied attorney's fees and did not address costs. On appeal, the District Court of Appeal, Sawaya, J., with Orfinger and Torpy, JJ., concurring, reversed the ruling on attorney's fees and remanded to determine appropriate fees and costs.

Comment:

Section 320.27(10) of the Florida Statutes permits a motor vehicle dealer to obtain an irrevocable letter of credit to satisfy the requirement of covering consumer losses. This case does not discuss whether a letter of credit fits the definition of insurer under the Florida Insurance Code, allowing beneficiaries to claim attorney's fees and costs. It seems that a letter of credit would serve the same purpose as a surety bond under this section.

[JEB/sws]

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