Civil Litigation,
Insurance
May 9, 2017
Reservations of rights undermine attorney-client trust
James 3, the leading case on the issue, was wrongly decided -- a "Buss reservation" breaks the bonds of trust between attorney and client beyond repair.
Jordan S. Stanzler
Stanzler Law GroupPhone: (650) 739-0200
Email: jstanzler@stanzlerlawgroup.com
Univ of Chicago Law School; Chicago IL
Insurance companies often agree to provide a defense to liability claims, while reserving their rights to deny coverage and to seek reimbursement of defense costs that they pay. This "sword of Damocles" presents the threat of a lawsuit by the insurance company to recoup every dollar the insurance company has spent in defending a claim.
The right to reimbursement was established in Buss v. Superior Court, 16 Cal. 4th 35 (1997), where the California Supreme Court held...
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