Skip to content

Opinion 659

Question Presented

May a Texas lawyer represent one insured in settling a claim and later represent that client’s insurance company in defending another insured’s claim that arises out of the same incident?

A and B are involved in an automobile accident.  Each has a policy issued by the same insurance company.  A’s liability policy has a coverage limit of $30,000.  B has both liability coverage and uninsured/under-insured (UM/UIM) coverage.

B sued A.  A’s lawyer, provided by the insurance company, litigated the case and eventually settled B’s claim against A for the full $30,000 limit of A’s policy.

B also sought additional recovery under her own policy’s UM/UIM coverage, which the insurance company denied.  In B’s lawsuit against the insurance company, the lawyer who represented A now represents the insurance company.  The insurance company’s position in B’s lawsuit is that the $30,000 that B collected under A’s policy was sufficient to cover all of B’s damages in the accident.

Bluebook Citation

Tex. Comm. On Professional Ethics, Op. 659 (2016)