Assurance Co. of America v. Haven

Opinion

DAVIS, J.

In this case, a liability insurer defended its insured under a reservation of rights that created a conflict of interest between the two of them. The issue on appeal is whether a liability insurer can sue its insured’s Cumis counsel 1 for negligence based on a breach of statutory duty for failing — in contravention of Civil Code section 2860 — to inform and consult with the insurer in a timely manner, to disclose to the insurer all nonprivileged information, and to cooperate in exchanging information with insurer-provided counsel. (Civ. Code, § 2860, subds. (d), (f).) We…