Appellate Court Orders Independent Counsel for Insured Builders

ELGIN, Ill. - The Appellate Court of Illinois on Feb. 6 ordered American Family Mutual Insurance Co. to pay for counsel retained by an insured who maintains that its interests in defending a mold and construction defect case are in conflict with the carrier's. American Family Mutual Insurance Co. v. W.H. McNaughton Builders Inc., No. 2-05-0063 (Ill. App. Ct., 2nd Dist.).

The 2nd District panel reversed a trial court finding that there is no present conflict between American Family and W.H. McNaughton Builders Inc., which is defending a lawsuit brought by homeowners Fred and Marianne Begy.

The Begys contend that …