Oregon Supreme Court Finds "Accepted Coverage" a Single Event for the Purposes of Recovery of Attorney Fees in a PIP Dispute
The Oregon Supreme Court recently modified a prior decision finding that its interpretation of “accepted coverage” was incorrect. In this case, the insured had prevailed in a personal injury protection (PIP) dispute with his insurer and sought to recover his attorney fees under ORS 742.061. This statute provides that a successful plaintiff is entitled to recover fees with the exception that no fees are required to be paid if the insurer has “accepted coverage” and “the only issue is the amount of benefits due the insured.” In the court’s prior opinion, it held that neither of the conditions had been met for the exception to apply. Progressive moved for reconsideration on the basis that the court erred in concluding that it had not “accepted coverage” as the court incorrectly found that the phrase was “not limited to a one-time decision . . . but rather is an ongoing series of decisions.” Pointing to other provisions of the statute, Progressive argued that “acceptance of coverage” is a single event that must occur within six months from the date that proof of loss is filed with the insurer. The court agreed with Progressive and modified its prior decision, stating that its prior interpretation of “accepted coverage” was incorrect.
