So You Think You Know the Law…(Answers to the Winter Edition 2012 of Gray Matters)
January 2012
3. If a complaint alleges punitive damages, it automatically entitles the insured to appointment of independent counsel. (True or False)
False: The fact that a complaint alleges punitive damages does not automatically entitle the insured to appointment of independent counsel. Rather, under Civil Code § 2860(b), the inquiry is based on whether the outcome of the coverage dispute can be controlled by the defense counsel retained by the insurer.
For any questions you may have regarding insurance coverage/bad faith, please contact Wendy Lin Suh in our Encino office.
Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.
