Opinion 179

P and D are involved in an automobile collision. D has a "5 and 10" insurance policy issued by I. P sustained such injuries that if it finds in his favor on liability, an average jury would allow him $20,000.00 damages. The evidence, both physical and eye witness testimony, is such that it is a toss-up whether the jury will hold for P or D on the question of liability. P employs Attorney A to handle his case. Before suit is filed, A writes D, informing him that P has employed A to handle his case; and P has assigned to A an undivided one-half interest in his cause of action; and offering to settle the cause of action for $10,000.00. A hears nothing from D, and A files suit for P against D for $40,000.00. I employs Attorney B to defend the suit, and B files an Answer for D.

1. Was A guilty of unethical practice in writing said letter to D?
2. Is D B's client in the case?
3. If the answer to question No. 2 is "Yes," at what instant did D become B's client?
4. As between D and I, does B owe more duty to one than he does to the other?
5. If the answer to question No. 4 is "Yes," to which does B owe his primary duty?
6. Is there a conflict of interest between D and I?
7. If the answer to question No. 6 is "Yes," does Canon 6 require (not whether B may do it, or whether the Attorney for the insurance company usually would do it; but would it be a violation of Canon 6 if he did not do it) B to fully inform D of the conflict between his interest and that of I?
8. If the answer to question No. 7 is "Yes," at what stage of the case is B required to make such disclosure to D?
9. Would Canon 6 require that B go so far as to inform D of the holding in the Stowers case?