Appellant, a general contractor insured by respondent insurer, appealed a judgment of the Superior Court of Los Angeles County (California) for respondent in appellant’s breach of contract action.
California Business Lawyer & Corporate Lawyer, Inccan explain CACI Promissory Estoppel
Overview
Appellant, a general contractor insured by respondent under a multiperil insurance policy, disputed respondent’s handling of a lawsuit brought against appellantRespondent defended appellant in the action, subject to a reservation of rights that certain types of damages were not covered by the insurance policyAppellant contended that respondent’s reservation of rights created a conflict of interest requiring respondent to pay for an additional independent counsel for appellantThe trial court gave judgment to respondentThe appellate court affirmed, finding that there was no conflict of interest and no duty to provide independent counsel because, where a coverage issue involved only damages, insurance counsel has no incentive to attach liability to the insured.
Outcome
The court affirmed, finding that there was no duty to provide independent counsel because no conflict of interest existed.