American Spirit Insurance v. Owens

In this appeal, we consider whether the indemnification provisions contained in an agency agreement between an insurance company and its agent provide for recovery of attorney’s fees and other expenses related to litigation of claims made on an insurance policy issued by the agent in breach of the agency agreement.

BACKGROUND

The parties do not dispute the material facts. On July 4, 1994, American Spirit Insurance Company (American Spirit) entered into an agency agreement with Foy B. Owens, doing business as Patrick Henry Insurance Agency (Owens). The agency agreement permitted Owens to bind…