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Attorney-Client Privilege as Between the Insured, the Insurer and Their Attorney

By Lewis E. Hassett and Katherine R. Lahnstein
January 05, 2006

The attorney-client privilege is a long-standing, well-respected principle. However, given that the privilege acts to limit the scope of discovery, it is frequently as challenged as it is respected. For example, the scope of privilege as between the insured, the insurer and the attorney representing their interests creates a peculiar problem for the courts. In this particular instance, the very basis of the privilege creates the problem.

The privilege, obviously, protects the communications between attorney and client. In the situation where an insurer has hired an attorney to represent its insured, however, the problem is the identification of the client. When the interests of the insured and the insurer are aligned, problems likely will not arise. However, when the insured and the insurer have a conflict ' be it over coverage, settlement, or even the extent of the attorney's representation ' the privilege issue will come to the forefront.

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