In Schaefer v. Elder, 217 Cal. App. 4th 1 (2013), the 3rd District Court of Appeal held that the policyholder was entitled to independent counsel when a liability insurer reserved the right to decline coverage if the insured's workers were independent contractors rather than employees. The insurer-appointed defense attorney was disqualified and removed from the case.
This second holding - that panel counsel can be disqualified...
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