Federal law lets insurer escape fees

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted July 25, 2019 9:10 AM

A federal judge ordered Jackson National Life Insurance Co. to pay $191,000 to Norma Cooke — plus $42,835 in attorney fees under Illinois Insurance Code Section 155, which authorizes fee-shifting and a penalty if an insurance company’s delay or refusal to pay a claim is “vexatious and unreasonable” — but the 7th U.S. Circuit Court of Appeals wiped out the fee award because it was based on Jackson National’s conduct during litigation and this was a procedural matter governed by federal …

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