Mlekush v. Farmers Insurance Exchange

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An injured first party insured who is compelled to sue for underinsured motorist (UIM) benefits and recovers more at trial than the last insurance company offer, the insurer must pay the first party insured’s attorney fees in an amount determined by the district court to be reasonable.Plaintiff in this case filed suit against Farmers Insurance Exchange, demanding her UIM policy limits. After Farmers extended its final offer of $77,500 to settle the claim, the jury returned a verdict in the amount of $450,000 in favor of Plaintiff. Judgment was entered for the policy limit amount of $200,000. The district court denied Plaintiff’s motion for attorney fees. The Supreme Court reversed, holding that Farmers was required to pay Plaintiff’s attorney fees because Plaintiff was compelled to sue and the jury returned a verdict higher than the amount of the last offer made by Farmers to settle her UIM claim. View "Mlekush v. Farmers Insurance Exchange" on Justia Law