#ThrowbackThursday to another landmark legal decision ... this one that is important for every insured driver in Nevada! Following an accident, State Farm agreed to defend its at-fault insured, but did so under a reservation of rights. The insured then settled with Hansen (the injured driver of the other vehicle). He then assigned his rights to sue State Farm to Hansen. Hansen proceeded to sue State Farm for bad faith, because the insurer refused to provide its insured with independent legal counsel. Eventually, the case escalated to the Nevada Supreme Court, which clarified crucial aspects of Nevada’s conflict-of-interest rules in insurance litigation: (1) Nevada law mandates that insurers must provide independent counsel to their insured when a conflict of interest arises; and (2) An insurer is compelled to provide this independent counsel when there is an actual conflict of interest, not just a potential one. Based on this ruling, insured individuals have the right to receive fair and independent legal representation -- paid for by their insurance company -- when the insurer's interests diverge from its insured's interests. If you are the defendant in a lawsuit and you believe your insurance company -- and the attorneys they hired for you -- are not looking out for your interests, you can give us a call. Attorney Jason Lather will review the facts of your case for free.
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