section 155 attorney fees in Illinois

2010App. 3d 493, 505 , 565 N.E.2d 1330 (1991) (finding an insurer that paid the underlying claim prior to being sued still may be held liable for section 155 fees where the insurer unreasonably delayed settling the claim).

2010App. 3d 493, 505 , 565 N.E.2d 1330 (1991) (finding an insurer that paid the underlying claim prior to being sued still may be held liable for section 155 fees where the insurer unreasonably delayed settling the claim).

2018We disagree. ¶ 94 Section 155 allows attorney fees in favor of a successful plaintiff who shows that the conduct of an insurance company with respect to a claim is "vexatious or unreasonable." Section 155 states in pertinent part: "(1) In any action by or against a company wherein there is in issue the liability of a company on a policy or policies of insurance or the amount of the loss payable thereunder, or for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the

2018We disagree. ¶ 94 Section 155 allows attorney fees in favor of a successful plaintiff who shows that the conduct of an insurance company with respect to a claim is “vexatious or unreasonable.” Section 155 states in pertinent part: “(1) In any action by or against a company wherein there is in issue the liability of a company on a policy or policies of insurance or the amount of the loss payable thereunder, or for an unreasonable delay in settling a claim, and it appears to the court that such action or delay is vexatious and unreasonable, the court may allow as part of the taxable costs in the

2010And, we find Amerisure’s reliance on Father & Sons, Inc. v. Taylor, 301 Ill.

2010And, we find Amerisure’s reliance on Father & Sons, Inc. v. Taylor, 301 Ill.

2010App. 3d 558 , 871 N.E.2d 138 (2007), to support its contention that Illinois courts have allowed arbitrators to award section 155 attorney fees.

2010App. 3d 558 , 871 N.E.2d 138 (2007), to support its contention that Illinois courts have allowed arbitrators to award section 155 attorney fees.

2010First Health Group Corp., 393 Ill.

2010First Health Group Corp., 393 Ill.

2010Although an arbitration panel need not disclose its basis for an award (Edward Electric Co. v. Automation, Inc., 229 Ill.

2010Turning to the substance of this appeal, Global contends the arbitrators exceeded their authority because (1) they awarded attorney fees on a basis the parties did not submit for resolution, and (2) Illinois law does not authorize arbitrators to award section 155 attorney fees. -17- 1-09-0820 Although an arbitration panel need not disclose its basis for an award (Edward Electric Co. v. Automation Inc., 229 Ill.

2010If the insurance company vexatiously delays or rejects legitimate claims, it is responsible for the expense resulting from the insured’s efforts to prosecute the claim. [Citation.] When an insured must resort to bringing a declaratory action against the insurer in order to enforce its right to coverage in an underlying lawsuit, the insured may recover section 155 attorney fees incurred in both the underlying case and the declaratory action. [Citation.]” (Emphasis added.) Estate of Price v. Universal Casualty Co., 334 Ill.

2010If the insurance company vexatiously delays or rejects legitimate claims, it is responsible for the expense resulting from the insured’s efforts to prosecute the claim. [Citation.] When an insured must resort to bringing a declaratory action against the insurer in order to enforce its right to coverage in an underlying lawsuit, the insured may recover section 155 attorney fees incurred in both the underlying case and the declaratory action. [Citation.]” (Emphasis added.) Estate of Price v. Universal Casualty Co., 334 Ill.

2010Moreover, this court has held that a party may not “recover attorneys fees under section 155 by way of an arbitration proceeding.” American Service Insurance Co. v. Passarelli, 323 Ill.

2010Moreover, this court has held that a party may not “recover attorneys fees under section 155 by way of an arbitration proceeding.” American Service Insurance Co. v. Passarelli, 323 Ill.

2002Marcheschi , 298 Ill.

2002Marcheschi, 298 Ill.

1997Purlee v. Liberty Mutual Fire Insurance Co., 260 Ill.App.3d 11, 32 , 197 Ill.Dec. 430, 445 , 631 N.E.2d 433, 448 (1994), citing Holbrook v. Institutional Insurance Co., 369 F.2d 236 (7th Cir.1966).

1994Moreover, where there is a question as to whether a policy was in effect at the time of loss, an insurer's refusal to pay a claim has been held not to be vexatious and without reasonable cause and the insurer is not liable for attorney fees under section 155. ( Holbrook v. Institutional Insurance Co. (7th Cir.1966), 369 F.2d 236 .) The record indicates that defendant had a legitimate defense to a finding of underinsured motorist coverage under each plaintiff's policy.

1997Buais, 275 Ill.

1997Buais v. Safeway Insurance Co., 275 Ill.

1997Shell Oil, 271 Ill.

1997Shell Oil, 271 Ill.

2023CONCLUSION ¶ 30 For the foregoing reasons, we affirm the judgment of the circuit court of Cook County. ¶ 31 Affirmed. - 12 - Moles v. Illinois Farmers Insurance Co., 2023 IL App (1st) 220853 Decision Under Review: Appeal from the Circuit Court of Cook County, No. 18-L-11082; the Hon.

2018The purpose of section 155 is to provide a remedy to insureds who encounter unnecessary difficulties resulting from an insurance company's vexatious and unreasonable refusal to honor its contract with the insured. *527 Korte Construction Co. v. American States Insurance , 322 Ill.

2014Id. at 873 . ¶ 115 La Grange is distinguishable from the instant case in two ways.

2014As an order awarding attorney fees generally will not be disturbed absent an abuse of discretion (Peleton, 375 Ill.

2007Steadfast I, 359 Ill.

2000Valdovinos , No. 2--99--0799, slip op. at 7-8, relying on Myrda , 221 Ill.

2000Valdovinos, 314 Ill.