§431:10-242 
Policyholder and other suits against insurer.  Where an insurer has
contested its liability under a policy and is ordered by the courts to pay
benefits under the policy, the policyholder, the beneficiary under a policy, or
the person who has acquired the rights of the policyholder or beneficiary under
the policy shall be awarded reasonable attorney's fees and the costs of suit,
in addition to the benefits under the policy. [L 1987, c 347, pt of §2]



 



Case Notes



 



  Request by intervenor-defendant for attorneys' fees and costs
denied; even assuming intervenor-defendant, as a tort victim of an insured, may
under some circumstances have a "legally protectable interest" in
insured's policy, intervenor-defendant was neither "the policyholder, the
beneficiary under a policy, [n]or the person who has acquired the rights of the
policyholder or beneficiary under the policy".  939 F. Supp. 782.



  Where self-insurer rent-a-car company not an
"insurer" as defined in §431:10C-103, court erred in granting attorney's
fees and costs under this section.  85 H. 243, 942 P.2d 507.



  Section inapplicable where, although insurer contested its
liability under the policy issued to insured, insurer was not ordered by the
court to pay any benefits thereunder.  103 H. 26, 79 P.3d 119.



  An arbitration proceeding is not a "suit" within
the meaning of this section.  103 H. 206, 81 P.3d 386.



  A trial court is mandated to award attorneys' fees and costs
only when such fees and costs arise in a judicial proceeding in which an insurer
has contested its liability; where trial court proceeding was for confirmation
of the underlying arbitration award, this section did not apply to the case. 
103 H. 206, 81 P.3d 386.



  Where insurer was not ordered to pay benefits under the
insurance policy within the meaning of this section, insured was not entitled
to attorneys' fees.  108 H. 358, 120 P.3d 257.



  Trial court abused its discretion when it awarded costs and
attorney's fees to claimants pursuant to this section where the trial court did
not order insurers to "pay benefits" as mandated by the plain
language of this section.  118 H. 174, 186 P.3d 609.



  As the plain language of this section mandates an award of
attorney's fees to "the policyholder, the beneficiary under a policy, or
the person who has acquired the rights of the policyholder or beneficiary under
the policy" whenever an insurer unsuccessfully contests its liability
under a policy, insured was properly awarded attorney's fees where insurer was
not successful in contesting its liability to insured for underinsured motorist
benefits.  120 H. 329 (App.), 205 P.3d 594.



  Cited:  73 H. 322, 832 P.2d 733.