Henke v. Iowa Home Mutual Casualty Co.

Henke (plaintiff) lost two negligence suits, incurring liability exceeding his insurance coverage. In those suits he was represented by a law firm his insurer, Iowa Home Mutual (defendant), had retained; the insurer shared confidential information with the firm but not with Henke. Henke sued for the insurer's bad faith and negligence in failing to settle, and obtained a discovery order for the insurer's communications with the firm, which the insurer appealed.

Whether attorney-client privilege prevents a lawyer representing two parties with mutual interests from sharing one party's confidential communication with the other party where doing so protects the other party's interests.