California Supreme Court Holds That Liability for Attorney Fees Is Not Included Under the Made Whole Rule


In a decision issued today, the California Supreme Court put to rest the question of whether, in the automobile med-pay insurance context, attorney fees incurred by an insured to obtain a third-party recovery is taken into consideration in determining whether that insured has been "made-whole." The California Supreme Court held in the negative. Instead, those fees are subject to a separate equitable apportionment rule (the "common fund" doctrine).

In its conclusion, the California Supreme Court held...

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