02.03.2017

Insured May Obtain Statutory Attorney Fees Where She Recovered Amount Not Memorialized In a Judgment

The Oregon Supreme Court held in Long v. Farmers Ins. Co. of Oregon, 360 Or 791, – P3d — (2017) that an insured may obtain statutory attorney fees without entry of a judgment.  A statute, ORS 742.061, permits an award of attorney fees if, in the insured’s lawsuit against the insurer, the insured obtains a “recovery” that exceeds the amount of any tender made by the insurer within six months from the date that the insured first filed proof of a loss.  The Court held that when an insured files an action against an insurer to recover sums owing on an insurance policy and the insurer subsequently pays the insured more than the amount of any tender made within six months from the insured’s proof of loss, the insured obtains a “recovery” that entitles the insured to an award of reasonable attorney fees.  The fact that the insured did not obtain a judgment memorializing the payment did not make the statute inapplicable.

 

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Posted by Geoff Bedell