In the context of defending construction-related litigation which falls within the scope of liability insurance coverage, a number of potential conflicts of interest can exist at the commencement or arise during the pendency of the dispute. This presentation explores some of those situations involving potential conflicts of interest of insurer-retained defense counsel in carrying out his/her representation of insured contractors at the behest of the insurance company. We will begin by identifying the source of the insurer’s right and duty to defend, how insurers typically execute and fulfill this right and duty, and some of the methods that insurers frequently use to control cost and manage litigation. Next, we will identify some of the Rules of Professional Conduct that are implicated in the "tripartite insurance defense" relationship as well as references to relevant Tennessee case law, Tennessee Formal Ethics Opinions, and the Restatement, 3d of the Law Governing Lawyers.

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