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Expert Analysis

Policyholders Must Assess Outside Counsel Guidelines

By John Scordo (June 26, 2017, 4:25 PM EDT) -- Liability insurers owe their insureds contractual duties of defense and indemnity. In an effort to control defense costs, insurers will often attempt to restrict the activities and fees of the insured's defense attorney through "litigation management" or "outside counsel" guidelines. Often a power struggle ensues between a policyholder and the insurer regarding whether a defense attorney's representation should be curtailed or restricted. If improperly applied by insurers, outside counsel guidelines can raise ethical issues, especially if they cause defense attorneys to strictly "adhere to insurers' guidelines against their better professional judgment."[1]...

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