Brown v. State Farm Mutual Insurance

Gregory, Justice:

Respondent Perry Brown’s 1974 Buick automobile caught fire and he sought recovery for a total loss under a policy of insurance with appellant State Farm Mutual Insurance Company. The jury returned a verdict of $3,950.00 1 and the trial judge awarded respondent’s attorney a fee of $1,316.66 under authority of Section 38-9-320 (1976 Code). The sole issue on appeal is the award of attorney’s fees. We reverse.

The above statute plainly permits a trial judge to award an attorney’s fee “when an insurance company’s refusal to pay . . [is] without reasonable cause or in bad faith’.”…