A Nevada Law Blog post recently compared an iconic wild-west film showdown to an upcoming showdown at the Nevada Supreme Court. The showdown will be over of whether the Court will impose Cumis-type obligations on Nevada insurance companies where an assigned defense panel counsel faces an irreconcilable conflict between the interests of the insurance company and those of the policyholder. An order just issued by the U.S. District Court, District of Nevada shows that this high noon showdown about legal ethics will happen much sooner than anyone had imagined.
As reported HERE, Judge Miranda Du of the U.S. District Court, District of Nevada previously found that State Farm owed a duty to its policyholders to pay for a Cumis-type attorney. Hansen v. State Farm Mutual Auto. Ins. Co., Case No. 2:10-cv-01434 MMD RJJ, 202 WL 6205722 (D. Nev. Dec. 12, 2012). At the time the prior blog post was written, the Nevada Law Blogs assumed that the Hansen case would continue toward resolution in the federal court and that the Cumis issue would eventually wend its way to the Nevada Supreme Court via another set of facts in a different case. [Continue reading]