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Whom Does the Insurance Defense Lawyer Represent?

PUBLICATION: Journal of Texas Insurance Law

ISSUE: Vol. 2, No. 2

DATE: Spring 2000

Every lawyer owes each of her clients a duty of undivided loyalty. This is part of what it means to have a fiduciary duty. Clients need to be able to trust their lawyers. What clients buy when they buy legal services, at least in part, is lawyer loyalty. This is part of the reason why faithless fiduciaries forfeit fees. Obviously, the interest of liability insurers and the interests of their insured are not completely aligned, and this is especially so when there are coverage questions. Yet, insureds under many types of liability policies contractually appoint liability insurers to manage litigation against them, and this right includes the hiring of lawyers. Thus, as everyone knows, under such insurance policies as general liability, homeowners, and auto, liability insurers routinely hire the lawyers who represent their insureds.