Opinion ID: 1304571
Heading Depth: 1
Heading Rank: 4

Heading: offset and attorney's fees

Text: Although not raised by the parties, it is appropriate to inquire whether an insured may recover from his agent both the unearned commission and the total amount of the insured's claim under his policy. Assuming, again, that the agents acted in good faith, we believe that to allow such a double recovery in cases where an insured has both a claim for restitution and for policy benefits would unfairly benefit the insured at the agent's expense. In those cases, if any, in which the insured's policy becomes truly valid and effective because the insured receives the full amount of his claim, the insured has received what he bargained for and has suffered no damage. In such cases, the agent has not been unjustly enriched and therefore should be allowed to retain his commission. If this situation arises, an appropriate offset should be allowed from the full payment of the claim. The Director has requested an award of attorney's fees under A.R.S. § 12-341.01, which grants the court discretion to award fees in actions arising out of a contract. See Wagenseller v. Scottsdale Memorial Hospital, 147 Ariz. 370, 394, 710 P.2d 1025, 1049 (1985). We exercise our discretion to deny fees because the agents' apparently acted in good faith, but see note 3 ante, and because the agents' liability for unpaid claims exists only by virtue of a statute that does not specifically authorize attorney's fees. If, on remand, the trial court finds that the agents did not act in good faith, it is within its discretion to award fees.