Calif. Must Clarify Independent Counsel Rates For Insurers
Law360 (June 29, 2020, 4:02 PM EDT) — Sometimes, insurance defense counsel will face a conflict of interest between the duties owed to his or her dual clients: the insurance company and the insured.
The California Court of Appeal addressed this issue in San Diego Navy Federal Credit Union v. Cumis Insurance Society Inc. and held that when such a conflict exists, the insured is entitled to retain independent defense counsel, not controlled by the insurance company. But in the face of insurer complaints about the expense of so-called Cumis counsel, the California Legislature codified and limited the Cumis rule in California Civil Code Section 2860.
Enacted 33 years…