Dennis Leingang v. Pierce County Medical Bureau, Inc.

Summary

The Washington Supreme Court affirmed the trial court's award of attorney fees for the declaratory judgment phase, holding that a health care service contractor's assertion of a UIM exclusion against the insured's UIM proceeds was a coverage dispute triggering Olympic Steamship fees even though the insurer had already paid the medical bills. On the merits, the court reversed the insured's Consumer Protection Act summary judgment and instead granted summary judgment to the contractor, reasoning that the alleged WAC 284-30 violations did not apply to health care service contractors, the applicable WAC 284-44 regulations were not violated, the Insurance Commissioner never disapproved the exclusion, and reliance on an exclusion that multiple Washington courts had upheld before Brown was an arguable interpretation of existing law rather than an unfair or deceptive act. The court affirmed dismissal of the tortious interference and emotional distress claims because the contractor's good-faith assertion of its legal interests involved no improper purpose or improper means, and mental pain and suffering is not compensable under the Act. Justice Sanders dissented in part, would have affirmed CPA liability on three independent grounds and reversed the interference dismissal; Justice Alexander dissented from the fee award, viewing the dispute as one over claim value rather than coverage.