Haw. Rev. Stat. § 431:10-242

Current through Act 7 of the 2024 Legislative Session
Section 431:10-242 - Policyholder and other suits against insurer

Where an insurer has contested its liability under a policy and is ordered by the courts to pay benefits under the policy, the policyholder, the beneficiary under a policy, or the person who has acquired the rights of the policyholder or beneficiary under the policy shall be awarded reasonable attorney's fees and the costs of suit, in addition to the benefits under the policy.

HRS § 431:10-242

L 1987, c 347, pt of §2

Request by intervenor-defendant for attorneys' fees and costs denied; even assuming intervenor-defendant, as a tort victim of an insured, may under some circumstances have a "legally protectable interest" in insured's policy, intervenor-defendant was neither "the policyholder, the beneficiary under a policy, [n]or the person who has acquired the rights of the policyholder or beneficiary under the policy". 939 F. Supp. 782. Where self-insurer rent-a-car company not an "insurer" as defined in § 431:10C-103, court erred in granting attorney's fees and costs under this section. 85 H. 243, 942 P.2d 507. Section inapplicable where, although insurer contested its liability under the policy issued to insured, insurer was not ordered by the court to pay any benefits thereunder. 103 H. 26, 79 P.3d 119. An arbitration proceeding is not a "suit" within the meaning of this section. 103 H. 206, 81 P.3d 386. A trial court is mandated to award attorneys' fees and costs only when such fees and costs arise in a judicial proceeding in which an insurer has contested its liability; where trial court proceeding was for confirmation of the underlying arbitration award, this section did not apply to the case.103 Haw. 206,81 P.3d 386. Where insurer was not ordered to pay benefits under the insurance policy within the meaning of this section, insured was not entitled to attorneys' fees. 108 H. 358, 120 P.3d 257. Trial court abused its discretion when it awarded costs and attorney's fees to claimants pursuant to this section where the trial court did not order insurers to "pay benefits" as mandated by the plain language of this section. 118 H. 174, 186 P.3d 609. As the plain language of this section mandates an award of attorney's fees to "the policyholder, the beneficiary under a policy, or the person who has acquired the rights of the policyholder or beneficiary under the policy" whenever an insurer unsuccessfully contests its liability under a policy, insured was properly awarded attorney's fees where insurer was not successful in contesting its liability to insured for underinsured motorist benefits. 120 H. 329 (App.), 205 P.3d 594. Cited: 73 H. 322, 832 P.2d 733. Discussed: 621 F. Supp. 2d 1025.