what is the connecticut rule recovering attorney fees in insurance litigation

by Nils Wunsch 7 min read

In ACMAT, the Connecticut Supreme Court held that “a trial court may award attorney’s fees to a policyholder that has prevailed in a declaratory judgment action against its insurance company only if the policyholder can prove that the insurer has engaged in bad faith conduct prior to or in the course of litigation.”

Full Answer

When are attorneys’ fees recoverable in a civil lawsuit?

Successfully Litigating Attorneys’ Fee Claims… • I. OVERVIEW OF BASIS FOR RECOVERY o A. GENERALLY Contract It is a well-established principle that courts must interpret contractual attorneys’ fees provisions according to the intent of the parties and the language they used. See, e.g., Ives v. Willimantic, 121 Conn. 408, 411 (1936)

Can an insured recover attorney’s fees for denied benefits?

Nov 26, 2013 · The decision whether or not to enforce one's rights under an insurance policy by suing an insurance company can be a difficult one for a policyholder. The decision-making process usually occurs ...

What is the American rule in association litigation?

Oct 02, 2003 · However, unlike most other states, Connecticut courts have limited punitive damages under this general rule to attorney ' s fees and other litigation costs. In addition to this common law rule, Connecticut has numerous statutes that allow punitive damages or attorney ' s fees or both for certain types of cases and situations. Some of these statutes authorize courts …

Are Attorney’s fees recoverable from opposing parties in Illinois?

Jun 08, 2007 · The Connecticut Supreme Court rejected an exception to the American rule governing the award of litigation costs and reversed an award of attorney’s fees to a prevailing policyholder in a ...

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Are legal fees included in compensatory damages?

The Supreme Court of California has ruled that a trial court's post-verdict award of attorneys' fees to an insured may be included in the amount of compensatory damages awarded to the insured for purposes of determining the punitive-compensatory damages ratio.Jul 19, 2016

Are counsel fees considered damages?

of the policy. 380 F. 3d at 1066. The Eighth Circuit agreed with the district court's analysis that “ in the context of a claim for attorney fees under RESPA, the award of attorney fees is not a 'cost' and therefore falls within the meaning of 'damages.

Can defendant recover attorneys fees Texas?

Under Texas law, a contract may provide that the prevailing party, whether the plaintiff or defendant, will recover its attorneys' fees against the other party, or that the statutory right for a prevailing plaintiff to recover its fees under section 38.001 is waived leaving no party able to recover its fees.Jul 26, 2021

Are attorneys fees considered damages California?

The holding of the trial court that the complaint fails to state a cause of action is in accordance with the settled rule that fees paid to attorneys are not recoverable as damages or otherwise in the absence of express statutory or contractual authority. The judgment is affirmed.

What is tort of another?

The doctrine of "tort of another" is an established exception to the general rule that the prevailing party does not recover attorney's fees. That doctrine "allows a plaintiff attorney fees if he is required to employ counsel to prosecute or defend an action against a third party because of the tort of the defendant.

What are Brandt fees?

Brandt fees are attorney fees incurred in obtaining policy benefits in the course of a bad faith lawsuit; the term derives from Brandt v. Superior Court, 37 Cal. 3d 813 (1985). The concept behind Brandt fees is that policy benefits should not be reduced by fees required to obtain them in a tort (bad faith) action.Oct 10, 2006

Can you recover attorney fees for breach of fiduciary duty Texas?

Am I entitled to recover attorneys' fees for filing my Breach of Fiduciary Duty Claim? The short answer is: No, you are usually not entitled to recover your attorneys' fees in a Breach of Fiduciary Duty case.

Can an LLC recover attorneys fees in Texas?

Texas law follows the “American Rule,” which provides that a plaintiff may only recover attorney's fees if authorized by the contract or by statute. ... This left parties with successful claims unable to recover attorney's fees from business entities such as limited liability companies and partnerships.Sep 21, 2021

Are expert fees recoverable as costs in Texas?

Expert witness fees are not recoverable in a personal injury case in Texas. One of the largest expenses a lawyer must incur in many cases is the cost of expert witness fees. ... Expert witnesses are just one of the costs not recoverable as costs of court.

When can you recover attorney fees in California?

The attorneys' fees law in California generally provides that unless the fees are provided for by statute or by contract they are not recoverable. In other words, unless a law or contract says otherwise the winning and losing party to lawsuit must pay their own attorneys fees.Jan 27, 2022

Can you sue for attorney fees in California?

California is no different than much of the jurisdictions in the U.S. Specifically, attorneys' fees are not recoverable as an item of damages in California with respect to a civil lawsuit unless authorized by (1) a statute or (2) a contract.Nov 21, 2017

Can you sue for attorney fees in Florida?

In Florida, a party to a lawsuit is generally only entitled to recover attorney's fees if the contract or statute, under which the suit is brought, provides for the recovery of attorney's fees. ... Conversely, the homeowner will be awarded fees if the homeowner prevails.

Does liability insurance cover attorney fees?

Liability insurance policies generally cover plaintiff’s attorney fees. The coverage for such fees is often shown by the policy’s insuring agreement, in which the insurance company promises to pay “loss,” “damages” or “sums” that arise out of a claim or that the insured legally becomes obligated to pay. The definition of those quoted terms further supports coverage. The absence of any language that expressly excludes coverage for plaintiff’s attorney fees is further powerful evidence of the intent to provide coverage. The following cases are examples of instances when courts have interpreted the plain language of a liability policy to cover plaintiff’s attorney fees.

What is Mighty Midgets Inc v. Centennial Insurance Co?

Centennial Insurance Co., 389 N.E.2d 1080, 1085 (N.Y. 1979), New York’s highest court held that in an insurance coverage action, a policyholder is entitled to recover its litigation expenses “when [the policyholder] has been cast in a defensive posture by the legal steps an insurer takes in an effort to free itself from its policy.”

Can you sue an insurance company in Kansas?

Under Kansas law, a policyholder is entitled to its reasonable attorney fees when it is forced to sue an insurance company for refusing “without just cause or excuse” to defend or indemnify the policyholder. Specifically, Kan. Stat. Ann. § 40-256 (2013) provides:

Can you recover attorney fees in a breach of contract action in Ohio?

In declaratory judgment actions involving insurance coverage, the Ohio Supreme Court has carved out an exception to the general rule that costs and attorney fees are usually not recoverable in breach-of-contract actions . The reason for this, according to Motorists Mutual Insurance Co. v. Trainor, 294 N.E.2d 874, 878 (Ohio 1973), is that the policyholder “must be put in a position as good as that which he would have occupied if the insurer had performed its duty.” See also Westfield Cos. v. O.K.L. Can Line, 804 N.E.2d 45, 56 (Ohio Ct. App. 2003) (awarding fees in a case in which the insurance company acted obdurately “with a stubborn propensity for needless litigation”).

Can insurance companies appoint defense counsel?

Even when the insurance company forces its policyholder into coverage litigation by denying its duty to defend the underlying litigation, it may nevertheless attempt to appoint its policyholder’s defense counsel. However, although it is in the policyholder’s best interest to vigorously and efficiently defend the underlying action, the insurance company’s interest may be to expend as little time and money as possible and instead vigorously pursue the coverage action.

What is the American rule in litigation?

The American Rule provides that each party to litigation pays for his or her own attorneys’ fees. There are, however, two exceptions to the American Rule that are often implicated in association litigation. First, attorneys’ fees are recoverable if a statute allows for their recovery.

Can attorneys' fees be recovered?

Second, attorneys fees can also be recoverable if the litigants are parties to a contract that contains a provision known as a “prevailing party provision” and the litigation involves a purported breach of the contract. This contractual provision typically states that any reasonable attorneys’ fees and costs that are incurred to enforce ...

Is an attorney's fee recoverable?

In all instances where attorneys’ fees are recoverable, the amount of fees to be recovered must be presented to the court as admissible evidence, whether in the form of an attorney affidavit or testimony at an evidentiary trial (as the court determines) for the court’s consideration of a number of factors.

State of Connecticut Insurance Department

Copies of the Insurance Department’s regulations are provided as a courtesy. While the Insurance Department makes every effort to ensure the accuracy and completeness of this information, the Department makes no warranty as to their accuracy, completeness, reliability, timeliness, or usefulness.

Laws and Regulations

Copies of the Insurance Department’s regulations are provided as a courtesy. While the Insurance Department makes every effort to ensure the accuracy and completeness of this information, the Department makes no warranty as to their accuracy, completeness, reliability, timeliness, or usefulness.

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