Abbie Uriguen Oldsmobile Buick v. United

This case results from an insurance company's denial of policy coverage for punitive damages. The insured brought this action seeking recovery of attorneys fees incurred as a result of the company's prospective denial of the punitive damage claim. Summary judgment was entered in favor of the company. We reverse. The first question presented herein is whether an insurance company is obligated, under a blanket automobile liability policy, to provide coverage of punitive damage claims arising out of an automobile accident; or whether, conversely, public policy in Idaho precludes such coverage. The second issue is whether the company's prospective denial of coverage against the punitive damage claim was a breach of the insurance contract which entitled the insured to retain his own counsel and thereafter recover his attorneys fees.