Dynamic Concepts, Inc. v. Truck Insurance Exchange

Opinion

CROSBY, J.

— This appeal is brought by an insured who demanded its liability insurer immediately provide independent counsel pursuant to Civil Code section 2860 when the insurer agreed to defend under a reservation of rights in an action involving covered and uncovered claims. The insured’s ultimatum to its insurer was to retain Cumis 1 counsel forthwith or be considered as not having provided a defense at all. The insured unilaterally settled the case, even though the insurer appointed defense counsel, without allowing that attorney to participate because of the reservation of rights.

Th…