Farris v. Fireman's Fund Insurance Co

In Farris v. Fireman's Fund Insurance Co. (2004) 119 Cal.App.4th 671, the court applied these principles to disqualify attorney James H. Wilkins and his law firm from representing an insured in a bad faith/breach of insurance contract action against the insurer (FFIC) where Wilkins had previously represented FFIC in coverage matters. (Farris v. Fireman's Fund Insurance Co., supra, 119 Cal.App.4th at pp. 676-677.) Before starting his own law firm in 1997, Wilkins had worked at the McCormick law firm for 13 years as a key member of the firm's insurance coverage department. During that time, Wilkins participated in confidential communications with senior FFIC employees and gave coverage and claims handling advice to FFIC, including discussions of settlement, litigation and claims handling strategies in connection with coverage matters. He was also a presenter in educational seminars for FFIC employees on issues related to coverage disputes and bad faith actions. (Id. at p. 677.) The Farris court explained that "the inquiry under Jessen v. Hartford Casualty Ins. Co. (2003) 111 Cal.App.4th 698 focuses 'upon the general features of the matters involved and inferences as to the likelihood that confidences were imparted by the former client that could be used to adverse effect in the subsequent representation.' " (Farris v. Fireman's Fund Ins. Co., supra, 119 Cal.App.4th at p. 681.) The court noted the undisputed evidence that Wilkins's relationship with FFIC was personal and direct, and, based on "the evidence of Wilkins's pervasive participation, and indeed his personal role in shaping, FFIC's practices and procedures in handling California coverage claims," concluded there was a substantial relationship between his successive representations of FFIC and Farris which compelled Wilkins's disqualification from representing an insured in litigation against FFIC. (Id. at pp. 679, 688.)