If an insurance company wrongfully denies a third-party liability claim, then, under the New Jersey Court Rules (R. 4:42-9(a)(6), to be exact), if the policyholder has to sue to enforce coverage for the claim, the policyholder is entitled to recover its attorneys’ fees. Due to a weird quirk in the Court Rules, however, a
attorneys' fees
Recovering attorneys’ fees
By Gene Killian on
Posted in Advertising injury, Attorneys' fees
Absent a specific law or contractual provision, American courts generally follow the “American Rule,” meaning that each side pays its own legal fees. Seems unfair that when a company buys a liability insurance policy, it still may have to hire lawyers to sue the carrier and secure the paid-for defense of an underlying action. New…