State Farm Mutual Automobile Insurance Co. v. K.A.W.

The Schlesinger law firm (defendant) represented the Wilkerson family, including husband David, in a personal injury suit against several insurance companies (plaintiffs) after a car accident, and separately in a related malpractice suit over their daughter's treatment; after the firm discovered David's own negligence may have caused the accident, David was fired as a client and later added as a defendant when his wife and daughter amended their complaint, with the firm continuing to represent the wife and daughter while David consented to being sued up to his insurance coverage limit and to the firm's continued representation of his family. The insurance companies, facing potential liability for any damages assessed against David, moved to disqualify the firm, arguing it could use David's confidential disclosures against him; the trial court declined to disqualify the firm, finding the insurers lacked standing and hadn't shown prejudice, and the court of appeal denied review.