When disputes arise out of an attorney’s handling of a legal matter, the parties involved are generally the attorney and the client. It is a basic concept that attorneys are only liable to their clients for their errors and omissions. But, as is the case with most rules, there can be gray areas.
What happens, for example, when someone other than the client is paying the legal fees? In most circumstances, an attorney does not owe any duties to a person who is simply paying the legal bills associated with the representation of another. However, this issue is even more complicated when an insurance company is overseeing the representation and paying the bills.
