Long

— After agreeing to provide a defense to its insured under a reservation of rights, an insurer elects not to have counsel representing its own interests participate in the third party action and instead allows counsel selected by the insured to conduct and control the entire defense. Is a subsequent fee dispute between the insured’s counsel and the insurer subject to mandatory arbitration under Civil Code section 2860, subdivision (c), which applies whenever an insurer, because of a conflict of interest, has a duty to provide independent (Cumis) counsel to represent its insured? (See San Diego Federal Credit Union v. Cumis Ins. Society, Inc. (1984) 162 Cal.App.3d 358 [ 208 Cal.Rptr. 494 ].)

Contending the answer to this question must be no, Jay B. Long argues the trial court erred in dismissing his first amended complaint against Century Indemnity Company and eight other insurance companies seeking to recover additional fees for the representation of his client, G. Harris International (Harris), in an environmental cleanup lawsuit. In fact, the correct answer to the question is yes, provided the reservation of rights creates a conflict of interest that trigger the…