This section discusses the availability of attorney fee awards to claimants and others.
(1) By claimant under the bond
"[A]n award of fees is required in any legal action where the insurer compels the insured to assume the burden of legal action, to obtain the full benefit of his insurance contract, regardless of whether the insurer's duty to defend is at issue." Olympic S.S. Co., Inc. v. Centennial Ins. Co., 117 Wn.2d 37, 53, 811 P.2d 673 (1991). These extra contractual fees are commonly referred to as Olympic Steamship fees and are likewise applicable to a dispute over surety bonds. Colo. Structures, Inc. v. Ins. Co. of the W., 161 Wn.2d 577, 597, 176 P.3d 1125 (2007). Accordingly, a prevailing obligee is entitled to recover attorney fees if it is determined that the surety wrongfully denied coverage. Id. at 606. The Colorado Structures court left intact the distinction between a coverage dispute
[Page 16-12]
and a valuation dispute, where Olympic Steamship fees...
