What does it mean to be an independent counsel with respect to conflicts of interest?

The term “independent counsel” means those situations in which an insured is entitled to select his counsel and control the defense because of the existence of a specific type of a conflict of interest with the insurer.

What is peppers counsel in Illinois?

Peppers, 355 N.E.2d 24 (Ill. 1976), the Illinois Supreme Court recognized that when a conflict of interest arises between an insurer and its insured, the attorney appointed by the insurer is faced with serious ethical questions and the insured is entitled to its own attorney.

What triggers Cumis counsel?

Cumis Counsel is legal counsel chosen by the insured when the insurer has a conflict of interest. Cumis counsel takes its name from San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., a 1984 court case in California that established the insured’s right to independent counsel.

Can a law firm represent both parties?

Lawyers are not able to represent more than one client in the same legal matter unless they comply with Rule 12 of the Rules. This protects both the lawyer and the clients in the event that the clients’ interests diverge, even if their interests start out the same.

What does a staff counsel do?

Staff Counsel Careers. The responsibility of a staff Counsel is to develop and provide an in-house presentation for professional development and training. You are to review and draft contracts, employment agreements, and a wide variety of legal correspondence.

What is a Cumis counsel in California?

Cumis counsel refers to the independent attorney whom a defendant is entitled to retain in a liability insurance claim — where there is a conflict of interest between the defendant and the insurance company.

What triggers the need for independent counsel in addition to the legal representation that an insurance carrier provides under a legal malpractice claim?

While the Cumis decision is from California and is a California principle, most states have their own rules, either codified by statute or case law, of when an insurer’s reservation of rights to contest insurance coverage triggers the insured’s right to independent counsel.

Which is an example of the Cumis doctrine?

A simple example would occur if you are sued for five million dollars and have only two million dollars of insurance available. Assume the plaintiff demands a two-million-dollar settlement. If that was accepted, it would cost you nothing…but would cost the insurance company the full two million dollars of their insurance.

What is the legal definition of Cumis counsel?

cumis counsel. n. an attorney employed by a defendant in a lawsuit when there is an insurance policy supposedly covering the claim, but there is a conflict of interest between the insurance company and the insured defendant.

When did the Cumis Insurance Society, inc.case happen?

Cumis Insurance Society, Inc., a 1984 court case in California that established the insured’s right to independent counsel. When an insurance company underwrites a new policy it not only agrees to protect the insured from losses, but also to defend the insured against any claims.

What was the case Cumis v.san Diego?

Puffy or cotton-like clouds Answer: “c” – the seminal California case on when an insurer is required to provide its insured with independent counsel – that is, the insured’s right to select its own counsel. San Diego Navy Federal Credit Union, et al. v. Cumis Ins. Society, Inc., 162 Cal.App.3d 358 (1984), later codified at Cal. Civ. Code § 2860.

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What does it mean to be an independent counsel with respect to conflicts of interest? The term “independent counsel” means those situations in which an insured is entitled to select his counsel and control the defense because of the existence of a specific type of a conflict of interest with the insurer. What is peppers…