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INSURANCE LITIGATION: The Connecticut District Court denies award of fees or costs to insurance companies in interpleader actions where action brought “primarily in its own self-interest”

INSURANCE LITIGATION: The Connecticut District Court Denies Award Of Fees Or Costs To Insurance Companies In Interpleader Actions Where Action Brought “primarily In Its Own Self-interest”

The District Court denied attorneys’ fees and costs to an insurer in an interpleader action, on the grounds that courts in the Second Circuit typically decline to award attorney fees and costs to insurance companies in interpleader actions.  The court reasoned that conflicting claims to the proceeds of insurance policies are normal risks of the insurance business and insurance companies bring interpleader actions for their own self-interest.  The court found that the decision to award fees and costs is within the sound discretion of the district court and where there is no indication the insurance company incurred any “unique expenses” in filing the interpleader action the court denies any award of fees or costs.  Wisconsin Province of the Society of Jesus v. Cassem, No. 3:17-CV-1477; March 19, 2019

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