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

Legal Ethics > Client Relations > Conflicts of Interest

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Legal Ethics > Client Relations > Conflicts of Interest

[HN14] Counsel representing the insurer and the insured owes both a high duty of care and unswerving allegiance. When two clients have diverging interests, counsel must disclose all facts and circumstances to both clients to enable them to make intelligent decisions regarding continuing representation. Model Code of Prof'l Responsibility EC 5-14, 5-15, 5-16 and 5-17 reinforce these constrictions, EC 5-16 states in part that before a lawyer may represent multiple clients he should explain fully to each client the implications of the common representation and should accept or continue employment only if the clients consent.

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