Travelers Insurance v. Plummer

Oregon law awards a plaintiff attorney fees in an action on an insurance polity when his recovery exceeds the amount tendered by the insurer. ORS 743.114. The issue before us is whether this statute applies when an insurance company sues to recover funds advanced to its insured upon a loan receipt, and the insured successfully counterclaims for attorney fees paid by him in gaining payment by a third party of the damages covered by the insurance policy.

In October 1970 Mr. and Mrs. Plummer were involved in an automobile accident in which their car was damaged and Mrs. Plummer injured. In April…