Ethical Lawyers Should Not Take Advantage of Right to Independent Counsel

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Consider Center Foundation v. Chicago Insurance Co., 227 Cal. App. 3d 547, 278 Cal. Rptr. 13 (Cal.App.Dist.2 02/05/1991) The Center for Feeling Therapy and its therapists were sued for medical malpractice and on various intentional tort theories. One of the Center’s insurers, Chicago Insurance Company, following a partially directed verdict in favor of the insureds sued to avoid payment of independent counsel selected by the insured.

In the appellate court’s view, the duty of good faith imposed upon an insured includes the obligation to act reasonably in selecting as independent counsel an experienced attorney qualified to present a meaningful defense and willing to engage in ethical billing practices susceptible to review at a standard stricter than that of the marketplace.