Coverage Attorneys' Fees Recoverable

JACO Environmental, Inc. v. American Int'l Spec. Lines Ins. Co., No. C09-0145JLR, 2010 WL 807441 (W.D. Wash. March 9, 2010)

The court found no issue of law to preclude a judicial finding in favor of the insured in its suit for attorneys' fees following adjudication of a duty to defend. As a breaching insurer, it was of no moment whether JACO was entitled to independent counsel under a policy issued by another insured, Truck Insurance Exchange ("Truck"), since this was irrelevant to JACO'S rights under the AISLIC policy. Id. at *3. The court also found that fees under Washington State Law incurred by coverage counsel pursuant to Olympic Steamship Co. were recoverable by Gauntlett & Associates as coverage counsel. The court requested briefing on several items to clarify points so that a final judgment could be entered. In order to fashion the mechanism by which appellate fees also owed by AISLIC were to be reimbursed was also left to further resolution.