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Oregon Revised Statutes

Or. Rev. Stat. § 742.061 (2026)

Recovery of attorney fees in action on policy or contractor’s bond

✓ current as of May 2026
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      742.061 Recovery of attorney fees in action on policy or contractor’s bond. (1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of insurance of any kind or nature, and the plaintiff’s recovery exceeds the amount of any tender made by the defendant in such action, a reasonable amount to be fixed by the court as attorney fees shall be taxed as part of the costs of the action and any appeal thereon. If the action is brought upon the bond of a contractor or subcontractor executed and delivered as provided in ORS 279B.055, 279B.060, 279C.380 or 701.430 and the plaintiff’s recovery does not exceed the amount of any tender made by the defendant in such action, a reasonable amount to be fixed by the court as attorney fees shall be taxed and allowed to the defendant as part of the costs of the action and any appeal thereon. If in an action brought upon such a bond the surety is allowed attorney fees and costs and the contractor or subcontractor has incurred expenses for attorney fees and costs in defending the action, the attorney fees and costs allowed the surety shall be applied first to reimbursing the contractor or subcontractor for such expenses.

      (2) Subsection (1) of this section does not apply to actions to recover personal injury protection benefits if, in writing, not later than six months from the date proof of loss is filed with the insurer:

      (a) The insurer has accepted coverage and the only issue is the amount of benefits due the insured; and

      (b) The insurer has consented to submit the case to binding arbitration.

      (3) Subsection (1) of this section does not apply to actions to recover uninsured or underinsured motorist benefits if, in writing, not later than six months from the date proof of loss is filed with the insurer:

      (a) The insurer has accepted coverage and the only issues are the liability of the uninsured or underinsured motorist and the damages due the insured; and

      (b) The insurer has consented to submit the case to binding arbitration. [Formerly 736.325 and then 743.114; 1999 c.790 §1; 2003 c.794 §328]

Notes of Decisions
Cited in 134 cases (23 in the last 5 years), 1990–2026 · leading case: Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016).
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Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016). · cites it 79× “” ORS 742.061. The exceptions were added at the behest of insurance carriers that were concerned that recent appellate decisions applying ORS 742.”
Spearman v. Progressive Classic Ins. Co., 396 P.3d 885 (Or. 2017). · cites it 48× “Before 1999, ORS 742.061 (1997)—now ORS 742.061(1)—generally provided for attorney fees whenever an insured prevailed in an action against his or her own insurer and recovered more than what the insurer had previously tendered.”
Alexander Mfg., Inc. Emp. Stock Ownership & Trust v. Illinois Union Ins., 688 F. Supp. 2d 1170 (D. Or. 2010). · cites it 45× “The Trust seeks attorney fees under Oregon Revised Statute section 742.061, which provides, in relevant part: [I]f settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
Kiryuta v. Country Preferred Ins. Co., 376 P.3d 284 (Or. 2016). · cites it 28× “1 ORS 742.061 provides, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
Dockins v. State Farm Ins., 985 P.2d 796 (Or. 1999). · cites it 35× “” Plaintiffs also sought attorney fees under ORS 742.061, set out post, their costs of remedial action “in an amount to be proved at trial,” and a declaration that State Farm was liable for those costs.”
Haynes v. Tri-Cnty. Metro. Transp., 103 P.3d 101 (Or. 2004). · cites it 29× “ORS 742.061, the text of which is set out below, generally provides that a person may recover reasonable attorney fees from an insurer if the following sequence of events occurs: (1) the person presents a proof of loss to an insurer; (2) the parties fail to settle the claim…”
Robinson v. Tri-Cnty. Metro. Transp. Dist., 370 P.3d 864 (Or. Ct. App. 2016). · cites it 25× “Grisby demonstrates, for our purposes, that the insurer, exceeds the fee exemption of ORS 742.061 when the added issue creates an actual dispute between the parties.”
Grisby v. Progressive Preferred Ins., 142 P.3d 531 (Or. Ct. App. 2006). · cites it 60× “Plaintiff appeals from a supplement judgment denying his petition for attorney fees under ORS 742.061 after he prevailed in an action against his insurer for payment of personal injury protection (PIP) benefits.”
Strawn v. Farmers Ins., 297 P.3d 439 (Or. 2013). · cites it 15× “4 The citation is to the 1997 version of ORS 742.061, which provided, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought…”
Wilson v. Tri-Cnty. Metro. Transp. Dist., 228 P.3d 1225 (Or. Ct. App. 2010). · cites it 36× “The answer requires an examination of the interplay between ORS 742.061, a statute that applies to recovery of attorney fees in an action on an insurance policy, and ORCP 54 E, a rule that limits recovery of attorney fees after a party presents an offer of judgment to an…”
Zimmerman v. Allstate Prop. & Cas. Ins., 311 P.3d 497 (Or. 2013). · cites it 23× “Consistently with that understanding of the term as it is commonly used in insurance policies, this court’s cases arising under ORS 742.061 and its predecessors have taken a pragmatic and functional, as opposed to strict and formalistic, approach in defining the term “proof of…”
Grisby v. Progressive Preferred Ins., 166 P.3d 519 (Or. 2007). · cites it 20× “We hold that plaintiffs action comes within the scope of the attorney fee provision for actions on insurance policies, ORS 742.061, and that plaintiff is entitled to recover a reasonable attorney fee from his insurer.”
Show all 134 citing cases →
— Or. Rev. Stat. § 742.061(1) — 69 cases
Strawn v. Farmers Ins., 297 P.3d 439 (Or. 2013). “4 The citation is to the 1997 version of ORS 742.061, which provided, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought…”
Mathis v. St. Helens Auto Ctr., Inc., 447 P.3d 490 (Or. Ct. App. 2019).
Haynes v. Tri-Cnty. Metro. Transp., 103 P.3d 101 (Or. 2004). “ORS 742.061, the text of which is set out below, generally provides that a person may recover reasonable attorney fees from an insurer if the following sequence of events occurs: (1) the person presents a proof of loss to an insurer; (2) the parties fail to settle the claim…”
Wilson v. Tri-Cnty. Metro. Transp. Dist., 228 P.3d 1225 (Or. Ct. App. 2010). “The answer requires an examination of the interplay between ORS 742.061, a statute that applies to recovery of attorney fees in an action on an insurance policy, and ORCP 54 E, a rule that limits recovery of attorney fees after a party presents an offer of judgment to an…”
Burns v. Am. Fam. Mut. Ins., 487 P.3d 50 (Or. Ct. App. 2021).
— Or. Rev. Stat. § 742.061(2) — 18 cases
Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016). “” ORS 742.061. The exceptions were added at the behest of insurance carriers that were concerned that recent appellate decisions applying ORS 742.”
Spearman v. Progressive Classic Ins. Co., 396 P.3d 885 (Or. 2017). “Before 1999, ORS 742.061 (1997)—now ORS 742.061(1)—generally provided for attorney fees whenever an insured prevailed in an action against his or her own insurer and recovered more than what the insurer had previously tendered.”
Grisby v. Progressive Preferred Ins., 142 P.3d 531 (Or. Ct. App. 2006). “Plaintiff appeals from a supplement judgment denying his petition for attorney fees under ORS 742.061 after he prevailed in an action against his insurer for payment of personal injury protection (PIP) benefits.”
Robinson v. Tri-Cnty. Metro. Transp. Dist., 370 P.3d 864 (Or. Ct. App. 2016). “Grisby demonstrates, for our purposes, that the insurer, exceeds the fee exemption of ORS 742.061 when the added issue creates an actual dispute between the parties.”
Kiryuta v. Country Preferred Ins. Co., 376 P.3d 284 (Or. 2016). “1 ORS 742.061 provides, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
— Or. Rev. Stat. § 742.061(2)(a) — 10 cases
Grisby v. Progressive Preferred Ins., 166 P.3d 519 (Or. 2007). “We hold that plaintiffs action comes within the scope of the attorney fee provision for actions on insurance policies, ORS 742.061, and that plaintiff is entitled to recover a reasonable attorney fee from his insurer.”
Grisby v. Progressive Preferred Ins., 142 P.3d 531 (Or. Ct. App. 2006). “Plaintiff appeals from a supplement judgment denying his petition for attorney fees under ORS 742.061 after he prevailed in an action against his insurer for payment of personal injury protection (PIP) benefits.”
Kiryuta v. Country Preferred Ins. Co., 376 P.3d 284 (Or. 2016). “1 ORS 742.061 provides, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
Congdon v. Berg, 299 P.3d 588 (Or. Ct. App. 2013).
Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016). “” ORS 742.061. The exceptions were added at the behest of insurance carriers that were concerned that recent appellate decisions applying ORS 742.”
— Or. Rev. Stat. § 742.061(3) — 33 cases
Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016). “” ORS 742.061. The exceptions were added at the behest of insurance carriers that were concerned that recent appellate decisions applying ORS 742.”
Spearman v. Progressive Classic Ins. Co., 396 P.3d 885 (Or. 2017). “Before 1999, ORS 742.061 (1997)—now ORS 742.061(1)—generally provided for attorney fees whenever an insured prevailed in an action against his or her own insurer and recovered more than what the insurer had previously tendered.”
Kiryuta v. Country Preferred Ins. Co., 376 P.3d 284 (Or. 2016). “1 ORS 742.061 provides, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
Robinson v. Tri-Cnty. Metro. Transp. Dist., 370 P.3d 864 (Or. Ct. App. 2016). “Grisby demonstrates, for our purposes, that the insurer, exceeds the fee exemption of ORS 742.061 when the added issue creates an actual dispute between the parties.”
Burns v. Am. Fam. Mut. Ins., 487 P.3d 50 (Or. Ct. App. 2021).
— Or. Rev. Stat. § 742.061(3)(a) — 14 cases
Kiryuta v. Country Preferred Ins. Co., 376 P.3d 284 (Or. 2016). “1 ORS 742.061 provides, in part: “(1) Except as otherwise provided in subsections (2) and (3) of this section, if settlement is not made within six months from the date proof of loss is filed with an insurer and an action is brought in any court of this state upon any policy of…”
Spearman v. Progressive Classic Ins., 366 P.3d 839 (Or. Ct. App. 2016). “” ORS 742.061. The exceptions were added at the behest of insurance carriers that were concerned that recent appellate decisions applying ORS 742.”
Congdon v. Berg, 299 P.3d 588 (Or. Ct. App. 2013).
Robinson v. Tri-Cnty. Metro. Transp. Dist., 370 P.3d 864 (Or. Ct. App. 2016). “Grisby demonstrates, for our purposes, that the insurer, exceeds the fee exemption of ORS 742.061 when the added issue creates an actual dispute between the parties.”
Grisby v. Progressive Preferred Ins., 142 P.3d 531 (Or. Ct. App. 2006). “Plaintiff appeals from a supplement judgment denying his petition for attorney fees under ORS 742.061 after he prevailed in an action against his insurer for payment of personal injury protection (PIP) benefits.”
— Or. Rev. Stat. § 742.061(3)(b) — 5 cases
Zimmerman v. Allstate Prop. & Cas. Ins., 311 P.3d 497 (Or. 2013). “Consistently with that understanding of the term as it is commonly used in insurance policies, this court’s cases arising under ORS 742.061 and its predecessors have taken a pragmatic and functional, as opposed to strict and formalistic, approach in defining the term “proof of…”
Bonds v. Farmers Ins., 240 P.3d 1086 (Or. 2010).
Rice v. State Farm Mut. Auto. Ins. Co., 476 P.3d 983 (Or. Ct. App. 2020).
Thomas v. Farmers Ins. Co. of Oregon, 164 P.3d 333 (Or. Ct. App. 2007).
Lizama v. Allstate Fire & Cas. Ins. Co., 425 P.3d 464 (Or. Ct. App. 2018).
— Or. Rev. Stat. § 742.061(3)(c) — 1 case
Kiryuta v. Country Preferred Ins. Co. (Or. 2016).
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