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Expert Analysis

When Winning An Insurance Trial Is A Bad Thing

Law360, New York ( April 30, 2014, 4:21 PM EDT) -- In a number of states, an insurer must reimburse a policyholder the attorneys' fee incurred in a coverage action if the policyholder prevails against the insurer. This is an exception to what is commonly called the "American Rule," which provides that each side in a lawsuit pays its own attorneys and costs, irrespective of the outcome of the case. This is distinct from the so-called "English Rule," which requires the loser to pay the winner's attorneys' fees and costs. Many states, in fact, have a significant number of exceptions to the American Rule....

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