Opinion ID: 171942
Heading Depth: 3
Heading Rank: 5

Heading: Motion for and Ruling on Attorney Fees

Text: Mr. Lopez then moved for an award of attorney fees under § 10-4-708(1.7). United Fire argued to the district court, among other things, that fees should be denied because Mr. Lopez had failed to provide a notice required under that section. The court denied attorney fees, but for a different reason. The court held that § 10-4-708(1.7) “provides for the recovery of attorney fees where the insured successfully brings a proceeding based on the contention that he or she properly submitted claims for payment but the insurer failed to make prompt payment of such direct benefits claimed when they were due.” Aplt. App. at 469. The court held that in the present case, however, the basis for United Fire’s liability was its inability to establish that it had properly offered enhanced PIP coverage in compliance with § 10-4-710. The court held: In this case, [Mr. Lopez’s] claims against United Fire were premised on its alleged failure to properly offer enhanced PIP benefits under C.R.S. § 10-4-710 as it existed during the applicable time period, thereby requiring a reformation of United Fire’s policy to include such benefits and, consequently, the entitlement to payment of enhanced PIP benefits. 7 The district court dismissed the claims against American Family, finding it had no liability unless Mr. Lopez’s expenses exceeded the $200,000 aggregate cap in the United Fire policy. Because Mr. Lopez agreed the cap would not be exceeded, the court found his claims against American Family were not ripe. -10- Id. at 469-70. The court finally stated that “[t]he statutory mechanism for the payment of enhanced PIP benefits was not applicable until the policy was reformed to include enhanced PIP benefits, the very purpose of this litigation. There was no breach of the contract as the policy was written.” Id. at 470.