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: Arkansas Business Litigation BlogInsurer Cannot Recover Attorney's Fees Under a Unilateral Reservation of Rights
By H. William Allen et al.
The Arkansas Supreme Court accepted certification of a question from the United States District Court for the Eastern District of Arkansas in Medical Liability Mut. Ins. Co. v. Alan Curtis Enterprises, Inc., No. 07-991 (5/29/08). The question is whether an insurer, once it has received judgment it has no duty to defend the insured, may the insurer recover attorney's fees in defending the lawsuit based solely on its reservation of rights?
The supreme court noted the majority rule would allow the insurer to recover attorney's fees. However, the policy in Arkansas is that attorney's fees are not recoverable unless expressly permitted by rule or statute. The court held an insurer may not recover attorney's fees based on a unilateral reservation of rights.
Full post as published by Arkansas Business Litigation Blog on June 01, 2008 (boomark / email).
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