When Should Government Regulate Lawyer-Client Relationships? The Campaign to Prevent Insurers from Managing Defense Costs

66 Pages Posted: 8 Jul 2002

See all articles by Charles Silver

Charles Silver

University of Texas at Austin - School of Law

Abstract

Since 1996, courts and state bar committes have issued an enormous number of opinions regulating insurance carriers' use of staff attorneys, fee audits, litigation management guidelines, and flat fees. On the whole, these opinions have sought to prevent insurers from innovating to reduce defense costs. The purported justification for extensive regulation has been the desire to protect vulnerable policyholders from exploitation.

Unfortunately, regulators have no evidence that policyholders are in danger. An exhaustive search of the opinions and other sources provides no factual basis for believing that modern defense cost management techniques have harmed policyholders. The real motive behind the campaign is the desire to empower defense lawyers and to prevent further reductions in fees.

JEL Classification: K20, K40, K41, K49

Suggested Citation

Silver, Charles M., When Should Government Regulate Lawyer-Client Relationships? The Campaign to Prevent Insurers from Managing Defense Costs. U of Texas Law, Public Law Research Paper No. 36, Available at SSRN: https://ssrn.com/abstract=314919 or http://dx.doi.org/10.2139/ssrn.314919

Charles M. Silver (Contact Author)

University of Texas at Austin - School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States
512-232-1337 (Phone)
512-232-1372 (Fax)

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