Oklahoma Supreme Court Backs Policyholders In Claim Dispute

TAMPA, Fla., May 28, 2020 /PRNewswire/ -- The Oklahoma Supreme Court recently answered "NO" to two certified questions of law from the United States Court of Appeals for the Tenth Circuit, an affirmative step in avoiding unwarranted constraints on policyholders' right to attorneys' fees and costs as a prevailing party. 

The Tenth Circuit's original ruling in Hamilton v. Northfield Insurance Co., which it later vacated, carried immense implications for policyholders. Because of the Tenth Circuit's original holding, the Oklahoma Association for Justice, led by attorneys like J. Drew Houghton of Merlin Law Group, played an integral role in advocating for policyholders through its submission of an amicus curiae brief supporting claimants' right to attorney fees and costs as the prevailing party under §3629(B).

The certified questions were:

• "[i]n determining which is the prevailing party under 36 O.S. § 3629(B), should a court consider settlement offers made by the insurer outside the sixty-day window for making such offers pursuant to the statute?;
• and "[i]n determine which is the prevailing party under 36 O.S. § 3629(B), should a court add to the verdict costs and attorney fees incurred up until the offer of settlement for comparison with a settlement offer that contemplated costs and fees?"

In its amicus curiae brief, the OAJ argued that when reading the statute and considering its context, it is clear that the "written offer of settlement" refers to an insurer's written offer to fulfill its policy obligations to its insured, not an offer to end a "dispute or lawsuit," as the Court originally found. By reaching its original conclusion to deny Hamilton as the prevailing party in this case, the Court is establishing a benchmark inconsistent with long-standing Oklahoma case law.

"Were this court to allow insurers to skirt the sixty-day requirement, offer payment at a later date, and then use the untimely payment to deny attorneys' fees owed…, then the purpose of a statute intended to ensure prompt payment of claims would be thoroughly thwarted," said Justice Gurich.

Houghton and the other OAJ attorneys involved will continue to fight for policyholder rights amidst bad faith insurer action.

More information here.

About Merlin Law Group: Merlin Law Group has been dedicated to representing policyholders and litigating their insurance claims for over 35 years. They have represented homeowners, commercial enterprises, condominium associations, and large municipalities.

SOURCE Merlin Law Group, P.A.

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