Fire Insurance Exchange v. Oltmanns

The Supreme Court affirmed the court of appeals’ decision to uphold the district court’s grant of summary judgment to Fire Insurance Exchange in this dispute over attorneys fees.In the underlying action, Fire Insurance’s action sought a declaratory judgment to determine whether the claim filed by Insured, who was named as a defendant in a personal injury case, was covered under Insured’s policy. The court of appeals ultimately held that the claim was covered. Insured filed a counterclaim seeking attorney fees for the declaratory judgment action, arguing that it was brought in bad faith. The district court concluded that Fire Insurance’s denial of Insured’s claim was reasonable because the coverage issue was “fairly debatable.” The court of appeals affirmed. The Supreme Court affirmed, holding that Insured’s claim that Fire Insurance did not fairly evaluate his claim and unreasonably rejected it failed. Therefore, summary judgment was properly granted to Fire Insurance. View "Fire Insurance Exchange v. Oltmanns" on Justia Law