O'Kun v. State Farm General Ins. Co.
A lawsuit was filed against appellant Lan O'Kun, alleging that he vandalized parking spaces at a condominium complex where he resided. O'Kun tendered his defense to his insurer, respondent State Farm General Insurance Company, which it accepted. A coverage dispute arose between State Farm and O'Kun. State Farm gave O'Kun the election of 1) waiving any conflict and accepting retained counsel from State Farm at no cost, or 2) retaining independent counsel which State Farm would compensate at insurance defense rates pursuant to Civil Code section 2860.
Court consider whether a conflict occurred sufficient to trigger application of Civil Code section 2860, the propriety of State Farm's conduct in defending O'Kun, and his entitlement to costs incurred in defending the underlying action. Court modify the judgment but otherwise affirm.
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