San diego navy federal credit union et al., Plaintiffs and Respondents, V. Cumis insurance society, inc., Defendant and Appellant Civ. No. 31043 Court of Appeal of California, Fourth Appellate District, Division One


(3) Attorneys at Law § 15--Attorney-client Relationship--Conflict of Interest and Remedies of Former Clients



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(3) Attorneys at Law § 15--Attorney-client Relationship--Conflict of Interest and Remedies of Former Clients. --The basis for the rule against an attorney representing conflicting interests is broader than the basis for the attorney-client evidentiary privilege. The evidentiary privilege and the ethical duty not to disclose confidences both arise from the need to encourage clients to disclose all possible pertinent information to their attorneys, and both protect only the confidential information disclosed. The duty not to represent conflicting interests, on the other hand, is an outgrowth of the attorney-client relationship itself, which is confidential, or fiduciary, in a broader sense. Not only do clients at times disclose confidential information to their attorneys, they also repose confidence in them. The privilege is founded only on the first of these attributes, the conflicting-interest rule, on both.
(4) Insurance Contracts and Coverage § 107--Extent of Loss of Insured and of Liability of Insurer--Liability and Indemnity Insurance--Obligation to Defend Insured--Duty of Attorney. --Counsel representing both an insurer and the insured owes both a high duty of care and unswerving allegiance.



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