Allstate Ins. Co. v. Robins, 78-1218
| Decision Date | 28 June 1979 |
| Docket Number | No. 78-1218,78-1218 |
| Citation | 597 P.2d 1052,42 Colo.App. 539 |
| Parties | ALLSTATE INSURANCE COMPANY, an Illinois Corporation, Plaintiff-Appellant, v. Jack ROBINS, Defendant-Appellee. . I |
| Court | Colorado Court of Appeals |
Burnett, Horan & Hilgers, William P. Horan, Denver, for plaintiff-appellant.
John E. Walberg, Denver, for defendant-appellee.
Allstate Insurance Company (company) brought a declaratory judgment suit against its insured, defendant Jack Robins, to determine whether defendant had automobile insurance coverage for an accident in which he was involved. The company appeals from a judgment entered against it for attorney's fees incurred by defendant in defending the suit. We affirm.
Defendant was involved in an automobile accident with a third person. He reported the accident to the company. Contending that no coverage existed because of defendant's automobile was not listed on his policy of insurance with the company, the company filed a declaratory judgment action against defendant to determine whether defendant was covered under the terms of the policy. Section II(b)(4) of this policy provides that the company shall:
"reimburse the Insured for all reasonable expenses, other than loss of earnings, incurred at the Company's request."
The trial court found that there was coverage and entered judgment in favor of defendant on his counterclaim for his expenses in defending the declaratory judgment suit. The company contends on appeal that the court erred or abused its discretion in awarding attorney's fees to its insured. There is no issue raised as to the reasonableness of the attorney's fees.
In Upland Mutual Insurance, Inc. v. Noel, 214 Kan. 145, 519 P.2d 737 (1974), the insurance company contended that its insurance policy did not afford coverage, and accordingly filed a declaratory judgment action against its insured seeking a determination of its liability. In determining the identical issue involved in the present case, the court found coverage and held that the company must reimburse the insured for any necessary legal fees and expenses incurred in the declaratory judgment suit.
In arriving at that result, the court quoted a comment from 7A J. Appleman, Insurance Law & Practice § 4691 (1962), criticizing decisions ruling that insurers were not liable for their insureds' attorneys fees incurred in determining that coverage existed " ...
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