What happens when an attorney acts on behalf of two clients with potentially diverging interests — a policyholder in the midst of defending important litigation and the liability insurance company paying the defense bills? How can policyholders ensure that insurance company-appointed defense counsel are able to defend the policyholder without worry of conflicts with the insurance company? This article examines the conflicts that surround the so-called “tripartite relationship” among policyholder, insurance company and defense counsel hired by the insurance company, as well as techniques to preserve defense counsel’s un-conflicted duty to its client, the policyholder. Insurance conflicts counsel is one such technique.
THREE’S A CROWD: THE DUTY TO DEFEND THE TRIPARTITE RELATIONSHIP
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