Insured Entitled To Have Independent Counsel Representation.

Plaintiff hired a contractor to design and build a residence, and later brought an action against the contractor for breach of contract and several other causes of action. The contractor tendered its defense to its insurance company, which company appointed counsel and defended subject to a reservation of rights. The insurer filed a separate declaratory relief action against the contractor. The contractor hired a law firm to move to disqualify the firm hired by its insurance company and determine the contractor had a right to independent counsel. In the underlying action, plaintiff alleged the contractor acted through its employees; but in answers to interrogatories prepared by the firm hired by the insurance company, the contractor stated he primarily contracted with subcontractors in the project. The trial judge disqualified counsel who represented both the insured and the insurer appealed. The appellate court found no error, noting that it had to assume the firm hired by the insurer received confidential information concerning whether the contractor hired subcontractors.  Schaefer v. Elder (Castlepoint National Insurance Company, as Intervener)  (Cal. App. Third Dist.; June 12, 2013) 217 Cal.App.4th 1, [157 Cal.Rptr.3d 654].