Insurance: Brandt Fees Properly Denied Where No Policy Benefits Claimed, Just Insurer Claim For Reimbursement Based On No Bad Faith Investigation

Theory Of Recovery Is Key In This Area.

               Many times, the theory of recovery is a key for attorney’s fees recoupment.  That is more so when an insured requests Brandt fees, with the theory needing to be calibrated to policy benefit recovery by the insured.  That did not happen in William Lyon Homes, Inc. v. Steadfast Ins. Co., Case No. G061834 (4^th Dist., Div. 3 Nov. 13, 2024) (unpublished), authored by Justice Gooding.

               The problem here for insured was that it was dealing with a retaliatory cross-complaint for recoupment of fees, with the insured admitting it was not based on bad faith lack of investigation facts.  These admissions were critical, such that insured could not attack insurer’s allegations for reimbursement.  Brandt fees were not at issue, given the cross-complaint filing was privileged and did not deal with affirmative recovery of insured benefits.