Warner's One Court of Justice Blog, Featuring Aaron Lindstrom: COA Opinion: An Award of Penalty Interest to An Insured For Breach of Contract is Not Appropriate When Coverage Was Reasonably In Dispute

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1/29/2010

On remand from the Michigan Supreme Court, the Court of Appeals determined in Auto-Owners Insurance Co. v. Ferwerda Enterprises, Inc., No. 277574 (Jan. 28, 2010), that the trial court should not have awarded attorney fees against the insurer when the insurer's argument that no coverage existed was not frivolous. The Court also reversed the award of penalty interest because the liability of the insurer was reasonably in dispute. The opinion, authored by Judge O'Connell, is available here.

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