Nev. High Court Says Calif. Cumis Rule Applies There, Too

Law360, New York (September 24, 2015, 10:38 PM EDT) -- Responding to questions certified by a federal judge, the Nevada Supreme Court said Thursday that a conflict of interest requires insurers to provide independent counsel for their insured, applying a California rule laid out in San Diego Navy Federal Credit Union v. Cumis Insurance Society.

U.S. District Judge Miranda M. Du had asked the Nevada court to resolve questions surrounding State Farm Mutual Automobile Insurance Co.’s decision not to provide independent counsel to an insured gang member who injured fleeing party guests when he and others attacked them and he rammed his Jeep into their vehicle.

The court said that, without...

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