Can an insurer who undertakes to defend its insured against a defense attorney who is also an attorney representing Manzanita?
MultiRegion, United States of America
The following excerpt is from Manzanita Park, Inc. v. Insurance Co. of North America, 857 F.2d 549 (9th Cir. 1988):
The clear indication is that Arizona law holds the insurer who undertakes to defend its insured to the standard of fiduciary care assumed by the attorney whom it appoints to conduct the defense. As a predicate of this relationship, Manzanita was entitled to be informed of the conflict of interest and its consequences, and of the early opportunity to have independent advice and counsel. Fulton v. Woodford, 545 P.2d at 982.
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