An Insurer's Obligation to Provide a Quality Defense: An Analysis of Insurer Litigation Guidelines

摘要

In most liability insurance policies, the insurer has the right and duty to defend any case brought against its policyholder. Although not expressly stated in the policy, most insurers also assume the right to appoint the law firm that will defend the policyholder in the case. This assumption inevitably leads to a host of legal and practical issues. Although the appointed attorney has a categorical legal duty to the client (the policyholder), that attorney does not want to displease the insurer, which pays the bills and selects counsel on behalf of all its other policyholders in other littigations. Insurance companies, particularly in recent years, have placed shackles on defense attorneys, dictating how much money the attorney can spend litigating a case and, in some instances, specifying the legal services the attorney may provide to defend a case.