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Does Insurance Cover Attorneys' Fees in a Class Action?

By Kirk A. Pasich
August 31, 2005

[Editor's Note: I've excerpted this article from Kirk Pasich's more detailed treatment in the August 2005 edition of our sibling newsletter, The Insurance Coverage Law Bulletin. Note also that this article specifically approaches the subject from the plaintiffs' point of view.]

The resolution of a class action almost always involves an award of attorneys' fees to plaintiffs' counsel, as part of the overall settlement or based on a separate hearng. But insurance companies often resist paying these awards. They contend that the awards constitute penalties or do not constitute insured compensatory damages. They also sometimes contend that the awards are not covered because they are derivative of uncovered claims.

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