473 P.3d 22
Okla.2020Background
- Hamilton submitted a proof of loss for a leaking roof in Dec. 2015; Northfield denied the claim twice (Feb. and Apr. 2016).
- Hamilton sued (Nov. 2016) for breach and bad-faith denial; discovery and litigation followed.
- In June 2017 (well after the statutory window), Northfield offered $45,000 to settle the lawsuit; Hamilton rejected and proceeded to trial.
- A jury awarded Hamilton $10,652 (the maximum allowed); Hamilton then sought attorney fees and costs under 36 O.S. § 3629(B).
- The district court held Hamilton was not the prevailing party because his recovery was less than Northfield’s later settlement offer; the Tenth Circuit certified two questions to the Oklahoma Supreme Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether offers made outside the 60‑day statutory window count when determining prevailing party under 36 O.S. § 3629(B) | Only insurer offers made within the statutory window (claim‑settlement offers) should be considered; late offers are irrelevant | Courts may consider later litigation settlement offers in comparing recovery to offers | No. Only timely offers to settle the underlying insurance claim within the 60‑day window are relevant under §3629(B) |
| Whether to add pre‑offer costs and attorney fees to the verdict when comparing it to a settlement offer that contemplated costs/fees | Yes—include costs/fees incurred up to the offer for a fair comparison | Comparison should account for what the offer contemplated; late offers that include fees should be considered | No in the §3629(B) context. The question is moot because litigation‑stage offers fall outside the statute’s 60‑day scope; court expresses no opinion on comparisons outside §3629(B) |
Key Cases Cited
- Shinault v. Mid‑Century Ins. Co., 654 P.2d 618 (Okla. 1982) (establishes prevailing‑party comparison under §3629(B))
- Lewis v. Farmers Ins. Co., 681 P.2d 67 (Okla. 1983) (statute requires prompt payment; protects insured from delay)
- Christian v. Am. Home Assurance Co., 577 P.2d 899 (Okla. 1977) (statutory duty of insurers to pay claims promptly)
- Barnes v. Okla. Farm Bureau Mut. Ins. Co., 94 P.3d 25 (Okla. 2004) (describes §3629(B) fee entitlement when insurer fails to timely offer/reject)
- Buzzard v. Farmers Ins. Co., 824 P.2d 1105 (Okla. 1991) (reasonableness of insurer’s conduct judged by actions during initial claim review)