Opinion ID: 1390684
Heading Depth: 1
Heading Rank: 8

Heading: Cross-Appeal on Attorneys' Fees

Text: By way of cross-appeal plaintiff raises the issue of whether the trial court erred in denying her motion for the assessment of attorneys' fees. K.S.A. 40-256 permits the award of attorney fees in actions on insurance policies if the trial court finds the insurance company refused without just cause or excuse to pay the full amount of the loss. Whether attorney fees are to be allowed depends on the facts and circumstances of each particular case. ( Sturdy v. Allied Mutual Ins. Co., supra; Forrester v. State Farm Mutual Automobile Ins. Co., supra.) The trial court held attorneys' fees were not recoverable in the instant case for the reason there existed a good faith legal controversy. Plaintiff argues the policy defense relied on by defendant prior to commencement of litigation was clearly unfounded. As previously noted, defendant originally based its refusal to pay on the policy exclusion relating to the reduction of benefits by the amount of workmen's compensation received. Although defendant was notified by the insurance commissioner prior to trial that its defense would not be valid under the new uninsured motorist statute, there was substantial cause for defendant to believe the new statute would not apply since it did not become effective until after the accident. We have heretofore demonstrated the error in defendant's reasoning. Yet, the misconception upon which defendant based its refusal was not such that would indicate an arbitrary, capricious or bad faith motive. The question of the application of the uninsured motorist statute to an accident occurring prior to its effective date was one of first impression in this state. We cannot say defendant refused plaintiff's claim without just cause or excuse. We recognize other arguments advanced by plaintiff as to waiver of defenses, but they need not be considered in view of the disposition of the case on other grounds. The judgment of the trial court on matters raised by defendant's appeal and plaintiff's cross-appeal is affirmed. FROMME, J., not participating.