California Insurance Bad Faith Claims: What Brandt Fees Are and When You Can Recover Them
Policyholders pay premiums expecting their insurance company to provide covered benefits when they suffer a loss. When an insurer unreasonably withholds payment, however, the policyholder may have to hire an attorney simply to obtain benefits that should have been provided.
California law recognizes that added expense. In certain circumstances, a California insurance bad faith claim can include attorney fees incurred in recovering wrongfully withheld policy benefits. These damages are known as Brandt fees. Still have questions? Contact us today!
California Insurance Bad Faith Claims: Key Points on Brandt Fees
If your insurer unreasonably delayed or denied your claim, here is what to know about a California insurance bad faith claim and the attorney fees known as Brandt fees.
- Brandt fees are attorney fees an insured incurs to obtain policy benefits an insurer withheld in bad faith, established in Brandt v. Superior Court.
- Not every insurance delay or denial is bad faith. A legitimate coverage disagreement is different from an insurer’s unreasonable failure to investigate or pay a claim.
- Brandt fees generally cover the legal work tied to recovering withheld benefits, not every expense of a bad faith lawsuit.
- Beyond Brandt fees, a bad faith claim may involve wrongfully withheld benefits, consequential economic losses, and emotional distress damages, depending on the circumstances.
What Are Brandt Fees in California?
Brandt fees are named after the California Supreme Court’s decision in Brandt v. Superior Court. The court held that when an insurer’s bad faith reasonably forces an insured to hire an attorney to obtain policy benefits, qualifying legal expenses may be recovered as damages.
Brandt fees in California do not cover all legal expenses incurred in suing an insurer. Instead, they generally cover reasonable attorney fees attributable to obtaining benefits wrongfully withheld under the policy.
This distinction reflects the reasoning behind the rule. If an insurer’s unreasonable conduct forces someone to spend money securing benefits they should have received, those expenses can represent an additional loss caused by the bad faith.
When Can You Recover Brandt Fees?
A denied insurance claim does not automatically support Brandt damages. An insurer can make an incorrect coverage decision without necessarily acting in bad faith.
Generally, an insured seeking these damages must establish:
- The amount they were entitled to receive under the policy,
- The insurer withheld those benefits unreasonably or without proper cause,
- The insured incurred legal fees and expenses to establish their right to contractual benefits, and
- Those fees and expenses were reasonable.
Each requirement connects the attorney fees to the insurer’s wrongful withholding of contractual benefits. A California insurance bad faith claim involving Brandt damages requires more than showing that the carrier should have paid the original claim.
When Can an Insurance Delay or Denial Become Bad Faith?
California insurers generally have a duty to handle claims reasonably and in good faith. A legitimate disagreement about coverage, the value of a loss, or another policy issue does not necessarily amount to misconduct.
Certain claim-handling behavior may nevertheless indicate a potential problem. The California Insurance Code identifies unfair claims settlement practices, including failing to respond reasonably promptly to communications, neglecting reasonable investigation standards, delaying coverage decisions, and failing to attempt fair settlements when liability has become reasonably clear.
For someone researching an insurance company delay or denial in California, the reason behind the carrier’s conduct is particularly important. An attorney may examine how the insurer investigated the loss, interpreted the policy, communicated with its insured, and justified its decision.
The Code does not itself create a private cause of action for policyholders. Insurance bad faith claims instead arise from an insurer’s breach of the implied covenant of good faith and fair dealing.
Related Reading: Bad Faith Insurance: What It Is and How to Fight Back
You Shouldn’t Have to Fight for Benefits You Already Paid For
Having an insurance claim denied can create significant financial pressure, and being forced to hire an attorney just to get benefits you are already owed adds another layer of hardship. California’s Brandt doctrine recognizes that added burden. Our team can review your policy, look into how your insurer handled your claim, and help you understand what compensation may be available.
Schedule A Free ConsultationWhat Attorney Fees Qualify as Brandt Damages?
Brandt damages do not cover every task performed during a lawsuit. Recoverable expenses must generally relate to obtaining benefits owed under the insurance contract.
For example, legal work may involve establishing coverage, proving the amount due, pursuing consequential damages, or seeking punitive damages. Fees reasonably attributable to recovering withheld contractual benefits may qualify under Brandt. Expenses incurred solely to obtain separate tort damages generally do not.
Separating those services can become difficult when contractual and bad faith issues overlap. Careful documentation of the attorney’s work may therefore become important when determining which expenses qualify.
How Are Brandt Fees Calculated?
There is no predetermined amount of Brandt fees California policyholders receive. The appropriate recovery depends on the reasonable legal expenses attributable to securing policy benefits.
Contingency fee arrangements can complicate the calculation. In Cassim v. Allstate Insurance Co., the California Supreme Court addressed how Brandt damages may be determined when counsel represents an insured on a contingency basis.
Ultimately, the analysis focuses on the portion of reasonable attorney expenses connected to obtaining contractual benefits. A policyholder should not assume that prevailing in a bad faith case means every legal expense becomes recoverable.
What Other Compensation May Be Available?
Brandt fees represent only one potential category of damages. Depending on the circumstances, a bad faith insurance lawsuit in California may also involve other losses resulting from the insurer’s conduct.
Potential damages can include:
- Policy benefits wrongfully withheld,
- Consequential economic losses caused by the insurer’s bad faith,
- Emotional distress damages when legally recoverable, and
- Reasonable Brandt fees associated with obtaining contractual benefits.
Additional remedies may apply in some cases. Punitive damages, for example, require a separate legal showing and are not automatically available whenever bad faith occurs.
The damages available depend on the policy, the insurer’s conduct, and the resulting harm. Evaluating each category separately can provide a more accurate picture of a potential case.
How Can an Attorney Help with a Bad Faith Claim?
Insurance disputes can involve complicated policy language, exclusions, correspondence, investigation records, and conflicting interpretations of coverage. A bad faith insurance attorney can review those materials to determine whether the insurer had a reasonable basis for delaying or denying benefits.
Legal counsel can also distinguish potentially recoverable Brandt expenses from other attorney fees, document financial losses, communicate with the carrier, and pursue litigation when appropriate.
Policyholders can help preserve a potential California insurance bad faith claim by retaining their policy, denial letters, emails, estimates, payment records, and other communications. These materials may help show what information the carrier possessed and how it handled the matter.
Brandt Fees and Bad Faith Insurance: Common Questions
Here are straightforward answers to common questions about California insurance bad faith claims and Brandt fees.
Brandt fees are attorney fees you may recover when your insurer’s bad faith forces you to hire a lawyer just to obtain policy benefits you were already owed. Established in Brandt v. Superior Court, they generally cover legal work tied to securing withheld benefits, not every expense of a lawsuit.
You generally must show you were entitled to benefits under your policy, the insurer withheld them unreasonably, you incurred legal fees to obtain those benefits, and the fees were reasonable. A denied claim alone does not establish bad faith.
A legitimate disagreement about coverage or value is not automatically bad faith. Conduct like unreasonably delaying a decision, failing to investigate properly, or not attempting a fair settlement once liability is clear can point to a potential violation of the insurer’s duty of good faith.
Beyond Brandt fees, you may be able to recover policy benefits that were wrongfully withheld, consequential economic losses, and emotional distress damages, depending on the circumstances. Punitive damages require a separate legal showing and are not automatic.
An attorney can review your policy and denial letters, look into how the insurer handled your claim, distinguish recoverable Brandt fees from other expenses, and pursue litigation if appropriate. Keeping your policy, correspondence, and payment records helps preserve your claim.
Talk to Wells Call Injury Lawyers About Insurance Bad Faith
Having an insurance claim denied can create significant financial pressure. Being forced to pay an attorney to obtain benefits already owed can add another layer of hardship. California’s Brandt doctrine recognizes that particular loss while limiting recovery to qualifying legal expenses.
Wells Call Injury Lawyers represents California policyholders in insurance bad faith disputes. Our team can review policy provisions, investigate the insurer’s handling of a claim, and assess the damages available based on the circumstances.
If you are considering a bad faith insurance lawsuit in California, Wells Call Injury Lawyers can help you understand your legal options. Contact our firm to discuss your claim and whether the insurer’s conduct may support further action.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
If you’re hurt and unsure what to do next, contact the California personal injury law firm clients trust. We’re here to listen and help you find a path forward. Tell us what happened, and we’ll walk you through your options—no pressure, no upfront costs.
