Civil Practice – Attorney’s Fee Motion – Insurance – Declaratory Judgment Action – Rule 54

Even though there is state-court litigation concerning the parties’ workers’ compensation insurance policy, since the plaintiff-insurer’s complaint in this federal action seeks a declaratory judgment only as to any future claims under the policy – excluding the ongoing state-court claim – this declaratory judgment action does not constitute a breach of the parties’ insurance contract. Therefore, the defendant-insured is not entitled to attorney’s fees under Hegler v. Gulf Ins. Co., 243 S.E.2d 443 (S.C. 1978).

Defendant’s motion for attorney’s fees is denied. Defendant is awarded costs in the amount of $6,038.71.

The court declined to exercise jurisdiction over this action because of the state-court action, so the dismissal was not on the merits. Nevertheless, defendant fulfilled its primary objective when plaintiff’s challenge was rebuffed, irrespective of the precise reason for the court’s decision. Thus, defendant is a prevailing party who is entitled to costs under Rule 54(b), FRCP.

Owners Insurance Co. v. Warren Mechanical, LLC (Lawyers Weekly No. 002-179-18, 14 pp.) (David Norton, J.) 2:16-cv-00669. Morgan Templeton and Stephanie Paige Brown for plaintiff; Peter Harris Dworjanyn for defendant. D.S.C.