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(Article from Insurance Law Alert, February 2018)

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Ruling on a matter of first impression under Oklahoma law, the Oklahoma Supreme Court held that a policyholder is entitled to an attorneys’ fee award after it has successfully pursued a declaratory judgment action against its insurer.  JP Energy Mktg., LLC v. Commerce & Industry Ins. Co., 2018 WL 703483 (Okla. Feb. 5, 2018). 

The policyholder sought declaratory relief from its insurers after they denied coverage and a defense in an underlying action.  An Oklahoma trial court granted the policyholder’s summary judgment motion and an appellate court affirmed.  Thereafter, the policyholder sought attorneys’ fees and costs.

Oklahoma statutory law provides for an attorneys’ fee award to a “prevailing party” in an insurance dispute.  Okla. Stat. tit. 36. § 3629 (2011).  Citing federal court decisions applying Oklahoma law, the Oklahoma Supreme Court concluded that section 3629 applies to prevailing policyholders in declaratory judgment actions, and is not limited to first-party actions where the insurer has denied coverage for a claim.  The court also ruled that the policyholder satisfied the statutory requirement for submitting a “proof of loss” by issuing a request for defense and indemnity.