McClain v. Safeco Insurance Co.

Safeco Insurance Company (Safeco) appeals from a judgment that awarded plaintiff recovery of her attorney fees under ORS 742.061. Safeco had sent her a timely letter offering to arbitrate the issues of fault and damages in her underinsured motorist claim. Under those circumstances, Safeco contends that attorney fees are not recoverable because the “safe harbor” exception of ORS 742.061(3) governs. We agree, reverse, and remand.

Plaintiff was injured in an auto accident with another motorist, and the liability insurer for that motorist paid its policy limit to plaintiff. In the meantime,…