Proposition 103 Fee-Shifting Provision Was Liberally Construed In Favor Of Intervenor “Watch Dogs.”
State Farm Gen. Ins. Co. v. Lora, Case No. D077731 (4th Dist., Div. 1 Oct. 29, 2021) (published) is one of the first decisions under Proposition 103, which has a fee-shifting provision allowing an award of advocacy fees to a consumer representative which makes a “substantial contribution” to efforts relating to adoption of an order in an insurance rate hearing decision making process. (Ins. Code, § 1861.10.) The consumer advocacy intervenor was able to prevent an insurer from sealing certain records in a positive manner along the rate-making process. The lower court awarded intervenor about $650,000 in fees, a conclusion affirmed by the appellate court. The “substantial contribution” language was to be interpreted liberally, such that fee compensation should be allowed for unsuccessful alternative arguments (as opposed to losing on unsuccessful claims).
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