Cumis Counsel

An attorney employed by a defendant in a lawsuit when there is an insurance policy supposedly covering the claim, but there is a conflict of interest between the insurance company and the insured defendant. A common conflict of interest is when the insurance company denies or refuses to defend all or part of a claim under a liability insurance policy, such as when an insurance company pays for the defense of a policyholder under a reservation of rights. (A "reservation of rights" letter usually states that the insurance company reserves its rights to later deny the claim should facts surface that prevent coverage, such as facts which would preclude coverage under a policy term or exclusion).

Cumis Counsel is needed to avoid the prospect of defense counsel shading the defense of the policyholder to the advantage of the insurer so that the reservation of rights would be used to later deny coverage. Not every reservation of rights creates a conflict of interest. Instead it depends on the nature of the coverage issue as it relates to the issues in the underlying case.

In some states (notably California) the defendant can demand that the insurance company pay the fees of his own attorney rather than use an insurance company lawyer. In other words, this independent defense Cumis Counsel is paid for by the insurer but chosen and controlled by the policyholder. It takes an experienced attorney to navigate you through this ticket. Please be certain to get a lawyer that knows the way.

"Cumis” is named after a case decided by the California Court of Appeals for the Fourth Appellate District on December 3, 1984 in San Diego Federal Credit Union v. Cumis Ins. Soc’y, (1984) 162 Cal.App.3d 358. The most important paragraph from the Cumis decision is as follows:

We conclude the Canons of Ethics impose upon lawyers hired by the insurer an obligation to explain to the insured and the insurer the full implications of joint representation in situations where the insurer has reserved its rights to deny coverage. If the insured does not give an informed consent to continued representation, counsel must cease to represent both. Moreover, in the absence of such consent, where there are divergent interests of the insured and the insurer brought about by the insurer's reservation of rights based on possible noncoverage under the insurance policy, the insurer must pay the reasonable cost for hiring independent counsel by the insured. The insurer may not compel the insured to surrender control of the litigation . . . Disregarding the common interests of both insured and insurer in finding total nonliability in the third party action, the remaining interests of the two diverge to such an extent as to create an actual, ethical conflict of interest warranting payment for the insureds' independent counsel.

Since then, Civil Code §2860 and court rulings have interpreted the original Cumis decision. If you have a case involving your insurance company, call Charles P. Charlton at (310) 651-9906 for a free consultation.

Charles P. Charlton specializes in both the defense and prosecution of civil lawsuits. Sometimes, people get sued and do not have insurance. No matter if he represents a plaintiff or a defendant, if you are suing or being sued, Mr. Charlton will be aggressive. Mr. Charlton works actively to gather the facts. He knows the law and how to best present your case to a favorable conclusion.

If you need to speak with a devoted, assertive, concerned and experienced lawyer, please contact Mr. Charles P. Charlton for a free consultation immediately at (310) 651-9906.


Areas Served

Counties Served:

We serve all counties in California: Alameda County, Alpine County, Amador County, Butte County, Calaveras County, Colusa County, Contra Costa County, Del Norte County, El Dorado County, Fresno County, Glenn County, Humboldt County, Imperial County, Inyo County, Kern County, Kings County, Lake County, Lassen County, Los Angeles County, Madera County, Marin County, Mariposa County, Mendocino County, Merced County, Modoc County, Mono County, Monterey County, Napa County, Nevada County, Orange County, Placer County, Plumas County, Riverside County, Sacramento County, San Benito County, San Bernardino County, San Diego County, San Francisco County, San Joaquin County, San Luis Obispo County, San Mateo County, Santa Barbara County, Santa Clara County, Santa Cruz County, Shasta County, Sierra County, Siskiyou County, Solano County, Sonoma County, Stanislaus County, Sutter County, Tehama County, Trinity County, Tulare County, Tuolumne County, Ventura County, Yolo County, Yuba County.

Cities Served:

Los Angeles County, CA: Agoura, Altadena, Alhambra, Bellflower, Beverly Hills, Burbank, Calabasas, Century City, Chatsworth, Compton, Culver City, Diamond Bar, Downey, Downtown Criminal Court, El Segundo, East Los Angeles, Eastlake, Encino, El Monte, Glendale, Glendora, Hermosa Beach, Hidden Hills, Hollywood, Huntington Park, Inglewood, Los Angeles Lawyer, La Canada, LAX Court, Los Padrinos, Long Beach, Los Angeles Attorney, Malibu, Manhattan Beach, Marina Del Rey, Newhall, Norwalk, Palos Verdes, Pasadena, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, San Dimas, San Fernando, San Marino, San Pedro, Santa Clarita, Sherman Oaks, Sierra Madre, Santa Monica, South Gate, South Pasadena, Sylmar, Torrance, Universal City, Valencia, Van Nuys, West Covina, West Hollywood, Walnut, Westchester, West Hollywood, Westlake Village, Whittier, Woodland Hills, California. Orange County, CA: Anaheim, Anaheim Hills, Buena Park, Costa Mesa, Fullerton, Garden Grove, Huntington Beach, Irvine Attorney, Laguna Beach, Laguna Hills, Laguna Niguel, La Habra, La Palma, Mission Viejo, Newport Beach, Orange, Orange County Lawyer, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Tustin, Villa Park, Westminster, Yorba Linda, California. Ventura County, CA: Camarillo, Moorpark, Oxnard, San Buenaventura, Simi Valley, Thousand Oaks, Westlake Village. San Bernardino County, CA: Ontario, Rancho Cucamonga, Upland.

© 2010 Charles P. Charlton Law Firm All Rights Reserved : Webmaster Kevin Grey Lee