GRP Ltd v. United States Aviation Underwriters, Inc

In GRP Ltd v. United States Aviation Underwriters, Inc, 70 Mich. App. 671; 247 N.W.2d 583 (1976), aff'd 402 Mich. 107; 261 N.W.2d 707 (1978), the plaintiff brought a declaratory judgment action to determine its rights with respect to an insurance contract. The trial court found in favor of the plaintiff, but denied the plaintiff's request for an award of the attorney fees and costs incurred in bringing the declaratory judgment action. GRP, 70 Mich. App. at 677. The plaintiff filed a cross appeal, arguing that the trial court erred in concluding that it was not entitled to attorney fees. GRP, 70 Mich. App. at 680. The plaintiff argued that while neither statute nor court rule permitted the recovery of attorney fees in a declaratory judgment action, it was entitled to attorney fees under the judicial exception allowing the recovery of attorney fees in interpleader actions. GRP, 70 Mich. App. at 681. The plaintiff argued that its declaratory judgment action was comparable to an interpleader action because it indifferently sought recovery from the defendants. Id. Citing Star Transfer, the Court stated that, "one who commences an interpleader action is entitled to the recovery of attorneys' fees." GRP, GRP, 70 Mich. App. at 681. However, the Court found the exception inapplicable on the basis that the declaratory judgment action was not an interpleader action because the plaintiff did not bring the action to protect itself against multiple liability. GRP, 70 Mich. App. at 681-682.