As an experienced legal analyst, I can’t help but concur with NY Marine’s concerns. The risk of Chipman inadvertently or intentionally sharing the insurer’s confidential information with his new firm is a genuine threat. And, unfortunately for Travelers, it seems they’re unable to effectively prevent this conflict of interest from arising.
California law is clear on the matter: “when a ‘tainted attorney was actually involved in the representation of the first client, and switches sides in the same case, no amount of screening will be sufficient, and the presumption of imputed knowledge is conclusive,’ thereby requiring the disqualification of the tainted firm.”
The legal timeline is crucial in understanding this complex case. NY Marine initially retained McCormick Barstow in October 2020 to serve as coverage counsel in its dispute with Travelers, concerning the defense of their mutual insured, Amber Heard, subject to a reservation of rights, in underlying litigation in Virginia. Fast forward to July 2021, Travelers filed a lawsuit against NY Marine, accusing the insurer of not paying its full share of defense costs for the defamation suit Depp brought against Heard in Virginia state court in 2019.
