Cumis Counsel

Tuesday, October 15, 2013

Will Nevada Adopt the Cumis Requirement?

The Cumis requirement is now a reality in Nevada—at least according to one federal district court interpreting Nevada Supreme Court precedent. This article describes the development of case and statutory law in California and Nevada governing conflicts of interest on the part of insurance carrier-retained defense counsel when the defending carrier reserves its rights to deny coverage. In addition, this article identifies typical situations creating a disqualifying conflict of interest, as well as practice pointers regarding the method of analysis, negotiating attorney fee rates, and resolving Cumis conflicts. Mr. Bolender presented this article, along with a slideshow and live presentation, to Nevada attorneys in October 2013 in a seminar co-sponsored by the Insurance and Health Law Section and the Construction Law Section of the Nevada State Bar.

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