Oregon court strips insurer's fee shield over one denied paragraph

Oregon court strips insurer's fee shield over one denied paragraph highlights how a single pleading mistake can affect underinsured motorist (UIM) fee protection. In a June 24, 2026 decision, the Oregon Court of Appeals ruled that Farmers Insurance Company of Oregon lost its “safe harbor” from paying an attorney-fee request after rejecting one specific paragraph in the policyholder’s complaint. The case began after a crash left the policyholder injured; she settled with the at-fault driver and later sought UIM benefits from Farmers. A jury found damages of about $350,000, and the trial court entered judgment on January 19, 2023. Farmers argued it had accepted coverage through a timely written notice under ORS 742.061(3). But by denying the allegation that she complied with policy conditions, the court said Farmers was still contesting more than liability and damages. The appeals court reversed and remanded for the trial court to address fees.