Ā§431:10-242Ā Policyholder and other suits against insurer.Ā  Where an insurer hascontested its liability under a policy and is ordered by the courts to paybenefits under the policy, the policyholder, the beneficiary under a policy, orthe person who has acquired the rights of the policyholder or beneficiary underthe 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 Ā§2]

 

Case Notes

 

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

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

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

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

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

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

Ā  Trial court abused its discretion when it awarded costs andattorney's fees to claimants pursuant to this section where the trial court didnot order insurers to "pay benefits" as mandated by the plainlanguage of this section.Ā  118 H. 174, 186 P.3d 609.

Ā  As the plain language of this section mandates an award ofattorney's fees to "the policyholder, the beneficiary under a policy, orthe person who has acquired the rights of the policyholder or beneficiary underthe policy" whenever an insurer unsuccessfully contests its liabilityunder a policy, insured was properly awarded attorney's fees where insurer wasnot successful in contesting its liability to insured for underinsured motoristbenefits.Ā  120 H. 329 (App.), 205 P.3d 594.

Ā  Cited:Ā  73 H. 322, 832 P.2d 733.