So You Think You Know the Law…(Answers to the Winter Edition 2012 of Gray Matters)
January 2012
2. In a tort action for wrongful denial of policy benefits, an insured may be entitled to its attorneys’ fees incurred to compel payment of benefits due under an insurance policy. (True or False)
True: “When an insurer’s tortious conduct reasonably compels the insured to retain an attorney to obtain the benefits due under a policy, it follows that the insurer should be liable in a tort action for that expense. The attorney’s fees are an economic loss—damages—proximately caused by the tort.” Brandt v. Sup.Ct. (Standard Ins. Co.) (1985) 37 Cal.3d 813, 817 (internal citation omitted); Essex Ins. Co. v. Five Star Dye House, Inc. (2006) 38 Cal.4th 1252, 1259.
For any questions you may have regarding insurance coverage/bad faith, please contact Wendy Lin Suh in our Encino office.
Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.
