Are Prevailing Party’s Attorneys’ Fees Covered In The Absence Of A Supplementary Payments Provision?

more+
less-

In the world of litigation, recovery of attorney fees it is often a driving factor in whether an attorney will represent a plaintiff. Insurance carriers, which have limited exposure for covered damages under the duty to indemnify, may nonetheless face very significant exposure if their policy provides for reimbursement of all costs taxed against their insured and if attorney fees are allowable as costs.

Traditionally, if the carrier had a duty to defend and the policy had a supplemental payments provision, the carrier often had to pay all of the attorney fees recoverable as costs despite significant coverage defense on the duty to indemnify. More recent case law has clarified this duty and limited the obligation of the carrier. Although the carrier’s cost to defend a claim and a carrier’s potential obligation to reimburse its insured for fees awarded remain driving factors in litigation, recent California decisions have clarified and linked this obligation to pay attorney fees to claims actually covered under the policy.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ropers, Majeski, Kohn & Bentley | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×