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California Legal Ethics Keyed to Wydick, 12th Ed.
Employers Insurance of Wausau v. Albert D. Seeno Construction Co.
Citation:
692 F. Supp. 1150 (1988)Facts
Seeno Construction obtained various insurance policies from Wausau in connection with its construction of homes. Buyers of several hundred homes brought claims against Seeno for alleged construction defects. After Seeno submitted these claims to Wausau, disputes arose regarding coverage and the proper handling of these claims. Wausau reserved its rights to deny coverage, and in March 1986, Seeno exercised its right to engage independent Cumis counsel paid for by Wausau. Seeno requested that Wausau handle unlitigated claims, while Seeno’s Cumis counsel handled litigated claims. In August 1986, Wausau filed this declaratory judgment action seeking a declaration of non-liability. Both parties subsequently moved to disqualify each other’s counsel, with Wausau arguing that Seeno’s counsel had a conflict by representing Seeno in both liability and coverage matters, and Seeno arguing that Wausau’s counsel had improperly represented Seeno’s interests.
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