Oregon Supreme Court rules that an insured could recover attorney fees where policy was issued outside of Oregon

In Morgan v. Amex Assur. Co., No. SC S059655 (Or Sept. 14, 2012), the insured obtained automobile insurance when she was living in Vancouver, Washington.  The insurer issued a Washington insurance policy and delivered it to the insured’s Vancouver address.  The insured made an underinsured motorist claim under her policy.  After the insurer declined tender, the insured filed suit.  The Court of Appeals held that the insured was not entitled to any attorney fees under ORS 742.061 based on a second statute, ORS 742.001, that limited the scope of Chapter 742 to “insurance policies delivered or issued for delivery in this state.”  On further review, Oregon Supreme Court reversed the Court of Appeals and held that attorney fees were available.  Looking to the history of ORS 742.001, the Oregon Supreme Court concluded that “the legislative history demonstrates that, in enacting [ORS 742.001], the 1967 legislature intended to expand the state's authority to impose substantive regulations on insurers transacting business in Oregon, consistently with federal limitations.  The legislature did not intend that [ORS 742.001] would limit the scope of any remedial sections, such as [ORS 742.061], included within Chapter 6 of the 1967 Act.”  Slip op. at 11-12.