Preview:

STATE OF MINNESOTA
IN COURT OF APPEALS
C1-01-670

Pine Island Farmers Coop, et al.,
Appellants,

vs.

Erstad & Riemer, P.A., et al.,
Respondents.


Filed December 11, 2001
Affirmed in part, reversed in part, and remanded
Foley, Judge*


Wabasha County District Court
File No. C700266

William A. Moeller, Dustin J. Cross, Gislason & Hunter LLP, 2700 South Broadway, P.O. Box 458, New Ulm, MN 56073-0458 (for appellants)
Kay Nord Hunt, Phillip A. Cole, Lommen, Nelson, Cole & Stageberg, P.A., 1800 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402 (for respondents)
Considered and decided by Shumaker, Presiding Judge, Schumacher, Judge, and Foley, Judge.
S Y L L A B U S
1.
         When an insurance company retains defense attorneys for the insured, the insured is the sole client of the defense attorneys and the attorney-client relationship does not extend to the insurer.

2.
         The doctrine of equitable subrogation does not apply in this case to give standing to the insurer to sue defense attorneys for malpractice in their representation of the insured in the underlying suit.


O P I N I O N FOLEY, Judge
            Appellants, insurer and insured, contend that the district court erred in holding that the insurer does not have an attorney-client relationship with respondents.  Appellants also argue that the district court properly granted the insurer standing to sue respondents for legal malpractice under the doctrine of equitable subrogation. Because the district court properly held that the insurer did not have an attorney-client relationship
with respondents, we affirm this holding, but we reverse the holding that the insurer can sue respondents under
equitable subrogation.   In addition, we  remand the  case  for further proceedings pursuant to the parties

Download c101670.pdf

Minnesota Law