Limiting An Insured’s Right To Independent Counsel

Law360, New York (July 17, 2012, 1:35 PM EDT) -- Under Texas law, “when the facts to be adjudicated in [a] liability lawsuit are the same facts upon which coverage depends, the conflict of interest will prevent the insurer from conducting the defense.” N. Cnty. Mut. Ins. Co. v. Davalos, 140 S.W.3d 685, 688 (Tex. 2004).

In Unauthorized Practice of Law v. American Home Assurance Co., the Texas Supreme Court observed that “the most common conflict between an insurer and an insured” is whether a claim falls within the policy, and that “coverage issues may …...
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