Liberty National Enterprises v. Chicago Title Insurance

Respondent Liberty National Enterprises, L.P. (Liberty), owns the Broadway Trade Center (BTC) in downtown Los Angeles. In May 2002, Liberty was served with an action that challenged its exclusive ownership of BTC. Liberty tendered the defense of this action to appellant Chicago Title Insurance Company (sometimes referred to as Chicago), which was refused. Liberty, represented by Attorney Donald C. McDougal, brought an action against Chicago in which it alleged that Chicago’s denial was in bad faith.

The trial was divided into three phases. Coverage was the first phase. When this concluded favorably to Liberty, Chicago changed counsel; new counsel moved to disqualify McDougal. Chicago contended that McDougal had learned confidential information about its claims policies when McDougal represented Chicago from time to time prior to 1995 and that McDougal should also be disqualified because he was a witness in the case. The trial court denied the motion and Chicago has appealed from this order. We affirm.

ATTORNEY McDOUGAL AND CHICAGO TITLE INSURANCE COMPANY

Prior to 1995, McDougal was hired by Chicago approximately 12 times to represent individuals or entities that had…