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BOLLAM v. FIREMAN'S FUND INS. CO.

A8004-02314; CA A27608; SC S32432, S32435.

730 P.2d 542 (1986)

302 Or. 343

Louis W. BOLLAM and Elaine H. Bollam, Petitioners/Cross-Respondents On Review, v. FIREMAN'S FUND INSURANCE COMPANY, a California Corporation, Respondent/Cross-Petitioner On Review.

Supreme Court of Oregon.

Decided December 16, 1986.

Reconsideration Denied March 17, 1987.

Attorney(s) appearing for the Case

Stephen R. Frank, Portland, argued the cause for petitioners/cross-respondents on review. With him on the briefs were Montgomery W. Cobb and Tooze, Marshall, Shenker, Holloway & Duden, Portland.

Gary V. Abbott, Portland, argued the cause for respondent/cross-petitioner on review. With him on the briefs was Hallmark, Griffith & Keating, P.C., Portland.

Before LENT, P.J., and LINDE, CAMPBELL, CARSON and JONES, JJ.

LENT, Presiding Justice.

In an action for damages by insureds against their liability insurer for negligent management of a claim against them, does their cause of action accrue (1) when the insureds are aware that the claim cannot be settled within their policy limits and as a result of the negligence incur attorney fees to protect their own interests, or (2) when they later pay their own funds to the claimant in order to settle the claim?1

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