Hedgecock v. Stewart Title Guaranty Co
In Hedgecock v. Stewart Title Guaranty Co., 676 P.2d 1208 (Colo. App. 1983), plaintiff sued her own title insurance company for breaching its contract by providing her with title that was not marketable, and for failing to cure the defect.
The Court awarded attorney fees to the insured, reasoning that:
If the insurer can force the insured into a declaratory judgment proceeding and, even though it loses in such action, compel the insured to bear the expense of such litigation, the insured is actually no better off financially than if he had never had the contract right . . . . Hedgecock v. Stewart Title Guaranty Co., supra, 676 P.2d at 1211.