Farmers Insurance v. Shuffield

Steele Hays, Justice.

By this appeal, Farmers Insurance Company of America challenges the allowance of an attorney’s fee in a dispute with its insured. Farmers insured the dwelling and contents of Mark Shuffield, which were later damaged by fire. While the claim was being processed, Farmers sued Shuffield, alleging he had committed fraud in submitting his proof of loss. Farmers asked that its coverage be declared void.

Shuffield counter-claimed for the fire damage and moved that Farmers’ suit be dismissed, which the trial court declined to do. Prior to trial, and without objection from Farmers,…