News & Analysis as of

Conflicts of Interest Reservation of Rights

Morris, Manning & Martin, LLP

Ninth Circuit Finds Pollution Exclusion Creates Conflict Requiring Independent Counsel

The insureds were sued for alleged environmental contamination from the operation of a marine terminal and chemical storage facility. The claimants alleged that hazardous materials leaked from storage tanks over a fifty-year...more

Ervin Cohen & Jessup LLP

Opportunities for insisting on independent counsel

Civil Code section 2860 authorizes the retention of independent counsel in the event a conflict of interest arises between the insurer and its insured. Under the statute a conflict of interest is deemed to arise “when an...more

Ervin Cohen & Jessup LLP

Getting Your Insurer To Favorably Resolve Litigation

Ervin Cohen & Jessup LLP on

Where a liability carrier has assumed its insured’s defense under a reservation of rights, a variety of conflicts between those parties may arise when there are settlement discussions to resolve the underlying litigation....more

Harris Beach Murtha PLLC

Bad Faith Claims Against Insurers: Can They Be “SLAPP”ed?

Harris Beach Murtha PLLC on

Responding to what have been called “strategic lawsuits against public participation” (“SLAPP”), twenty-nine states, including Connecticut, have enacted some form of anti-SLAPP legislation in recent years. These anti-SLAPP...more

Pillsbury - Policyholder Pulse blog

California Bad Faith Claims Cannot Be “Slapped”

The California Court of Appeal recently disposed of a novel attack on bad faith law launched by Zurich American Insurance Company. In Miller Marital Deduction Trust, et al. v. Zurich American Insurance Company, 2019 DJDAR...more

Sheppard Mullin Richter & Hampton LLP

Anti-Slapp Statute Does Not Apply To Allegations That Insurer Improperly Refused To Provide Cumis Counsel

Miller Marital Deduction Trust v. Zurich American Insurance Company, — P.3d –, 2019 WL 5304862; First Appellate District Court of Appeal, Division Three, Case No. A155398 (October 21, 2019). In Miller Marital Deduction...more

Blake, Cassels & Graydon LLP

Alberta Court Releases Precedent-Setting Decision on Insurers’ Right and Duty to Defend

In its recent decision in Temple Insurance Company v. Sazwan, the Court of Queen’s Bench of Alberta (Court) considered the scope of, and exceptions to, an insurer’s right and duty to defend. This is the first decision in...more

Spilman Thomas & Battle, PLLC

Off the Reservation (of Rights): South Carolina Speaks on CGL Insurer Notification Requirements

Lawsuits over defective construction are common in South Carolina. So, when a construction company covered by a CGL insurance policy is sued over an alleged construction defect, the insurance company may agree to defend the...more

Holland & Knight LLP

Ruling Elevates Conflicts Considerations in Insurance/Tripartite Relationship Cases - After Washington Supreme Court Decision,...

Holland & Knight LLP on

• Relationships between insurer, insured and insurer-appointed defense counsel – also known as the "tripartite relationship" – have long been recognized as a potential source of conflicts of interest. By a 5-4 majority in...more

Butler Snow LLP

“Generic,” “Cut-and-Paste” Reservation of Rights Letter Ineffective

Butler Snow LLP on

Insureds won a round the other day when the South Carolina Supreme Court held that reservation of rights letters, which it characterized as nothing but “generic statements of potential non-coverage coupled with” large...more

Cozen O'Connor

Cumis Counsel: An Insurer’s Right To Dispute Coverage Does Not Automatically Trigger A Right to Cumis Counsel

Cozen O'Connor on

Recently, once again, a California appeals court weighed in on the scope of the right to Cumis counsel and the meaning of Cal. Civil Code §2860. St. Paul Mercury Insurance Company v. McMillin Homes Construction, Inc., No....more

Hinshaw & Culbertson LLP

The Lawyers' Lawyer Newsletter - Recent Developments in Risk Management - June 2016

Disqualification — Substantially Related Matters — Waiver of Conflict by Lack of Diligence in Seeking Disqualification - State of Minnesota, et al v. 3M Company, Hennepin County (Minn.), Court File No. 27-CV-10-28862...more

Cozen O'Connor

State Farm v. Hansen: Nevada Supreme Court Adopts California Independent Counsel Rules

Cozen O'Connor on

The Nevada Supreme Court has adopted California’s independent counsel rules, holding that an insured is entitled to select its own counsel where an insurer’s coverage reservation creates an actual conflict of interest between...more

Butler Snow LLP

Nevada Supreme Court adopts Cumis independent counsel rule, but refuses to hold that reservation of rights letter always presents...

Butler Snow LLP on

Answering two certified questions, the Nevada Supreme Court has adopted the independent counsel rule first laid down in San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., holding: When a conflict of...more

Haight Brown & Bonesteel LLP

Conclusory Allegations Held Insufficient to Support Declaratory Relief on Right to Independent Counsel or Allocation of Defense...

In Centex Homes v. St. Paul Fire & Marine Ins. Co. (No. E060057, filed 5/22/15), a California Court of Appeal held that a developer’s declaratory relief lawsuit seeking a declaration of the right to independent counsel was...more

Melito & Adolfsen

A mere reservation or rights by an insurer does not require the insurer to supply independent counsel to its insured

Melito & Adolfsen on

A bill recently introduced in the Illinois State Senate known as the Insureds Independent Counsel Act, while, if enacted, will only apply in that State, is instructive as to when an insurance company must supply independent...more

Neal, Gerber & Eisenberg LLP

"Non-Trivial Probability" of Excess Judgment Obligates Insurer to Pay for Independent Defense Counsel

The court in Perma-Pipe, Inc. v. Liberty Surplus Insurance Corporation, Case No. 13 C 2989, 2014 U.S. Dist. LEXIS 54867 (N.D. Ill. April 21, 2014), held that a CGL insurer breached its duty to defend by refusing to pay for...more

Cozen O'Connor

Fifth Circuit Rejects Insured’s Efforts to Secure Independent Counsel

Cozen O'Connor on

On October 15, 2012, the U.S. District Court of Appeals for the 5th Circuit – applying Texas law – addressed another Cumis counsel matter. See Coats, Rose, Yale, Ryman & Lee, P.C. v. Navigators Specialty Ins. Co., No....more

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