After winning an arbitration with homeowners insurance, can I sue to recoup costs?

UPDATED: Oct 1, 2022

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After winning an arbitration with homeowners insurance, can I sue to recoup costs?

We are located in MN. Our home was damaged in springThe adjuster lowballed our damages and we requested a second adjustment. Since it was a small insurance company they only work with one adjustor and so the same adjuster came out to give us the

Asked on November 16, 2017 under Insurance Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, you cannot unless the insurance policy said that in the event of a dispute, the winner recovers legal fees. Under the "American Rule" for litigation, which is the rule in our country, each party bears its own litigation (and arbitration) expenses and cannot recover them from the other side. Only if there was a statute specifically saying you could recover the costs, which is the case in only a handful of matters (primarily those involving forms of discrimination)--and is not the case in insurance or contract lawsuits--or the policy, which is a contract, stated the winner recovers costs from the other side (since then, the two parties agreed in advance to this), can you get your expenses from the insurer.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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