Opinions of the General Counsel, 0313 ALBJ, 74 The Alabama Lawyer 138 (2013)

• Author: J. Anthony McLain

OPINIONS OF THE GENERAL COUNSEL

Vol. 74 No. 2 Pg. 138

Alabama Bar Lawyer

March 2013

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0 J. Anthony McLain

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0The Tripartite Relationship of Insurance Defense Counsel

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0QUESTION:

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0“The purpose of this letter is to request an opinion from the Alabama State Bar concerning whether our firm has a conflict of interest in representing a defendant, A & B Trucking Company, in a lawsuit filed against it by the XYZ Insurance Company.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0“A & B Trucking Company is a regular client of our firm for which we have handled numerous legal matters. Our firm also represents insureds of XYZ in some litigation. Our firm does not have any cases where we represent XYZ directly. All of the current files we have are where we represent an insured of XYZ in some type of litigation and XYZ is providing the defense and indemnity for any judgment.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0“The suit filed by XYZ against A & B is a claim for fraud arising out of workers’ compensation insurance issued by XYZ to a company named Acme Driver Leasing, Inc. A & B’s involvement in the case arises out of the fact that it leased truck drivers from Acme Driver Leasing. The allegation by XYZ is that Acme Driver Leasing, A & B and the insurance broker conspired to defraud XYZ by misrepresenting the nature of the Acme Driver Leasing operation and the relationship of that company to A & B. XYZ alleges that it is entitled to additional workers’ compensation insurance premiums for a three-and-a-half-year period because of those misrepresentations. A & B, Acme Driver Leasing and the insurance broker are all defendants in the lawsuit filed by XYZ.

\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0\xA0“Our firm has never been involved in any litigation similar to the lawsuit filed by XYZ. By virtue of our representation of XYZ’s insureds in the past and at present, our firm has never been privy to or had access to any information which would have any bearing on the issues in the XYZ lawsuit. All of these facts have been disclosed to A & B and A &amp...