Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

On March 30, 2007, Farella Braun Martel LLP presented a training on how to manage defense counsel during litigation. 

The training emphasized notifying the insurance carrier as soon as a company knows of litigation.  This is because general liability policies have notice rules. 

The firm discussed who got to choose defense counsel.  In directors and officers policies, there is usually an approved list for a company to choose the defense counsel from.

The firm discussed the rates the carrier must pay.  According to California Civil Code section 2860, there are certain rates to be paid when there is a duty to defend.  In director and officers insurance policies, there may be no duty to defend.

The firm discussed whether the carrier can allocate defense costs.  The firm went over the case of Buss v. Superior Court. 

The carrier must be informed about the status of the litigation.  There is a duty to cooperate, which brings on privilege issues when there are coverage disputes.  The case Atmel v. St. Paul is an illustration of a denied motion to compel a broker to produce certain documents when acting as a coverage ally to a company.  However, in order to get a carrier to settle a case, the carrier needs to be satisfied on the information it gets.