5th Circ. Weighs Firm’s Right To Pick Malpractice Counsel

Law360, Houston (October 3, 2012, 10:31 PM EDT) -- Coats Rose Yale Ryman & Lee PC told a federal appeals court Wednesday that law firms have the right to pick independent counsel to defend malpractice suits when a firm’s insurance carrier ties coverage to the outcome of the underlying suit.

Arguing before the Fifth Circuit, Coats Rose attorney Byron George Lee said his firm’s malpractice insurer, Navigators Group Inc., created a conflict of interest when it issued a letter he claims implied the carrier was reserving its right to exclude coverage for acts of dishonesty....
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