FIFTH CIRCUIT DENIES EN BANC REVIEW OF INDEPENDENT COUNSEL DECISION

On Wednesday, the Fifth Circuit denied en banc review of the decision in Downhole Navigator v. Nautilus. The Fifth Circuit did so without issuing an opinion.  Downhole involved the insured’s rejection of panel counsel after the insurer issued a reservation of rights letter.  Downhole then sued Nautilus for refusing to provide independent counsel.  As reported in the Texas Insurance Law Newsbrief on July 20, 2012, the Fifth Circuit held that the insurer did not owe the insured independent counsel.  Downhole Navigator, L.L.C. v. Nautilus Ins. Co., --- S.W.3d ---, 2012 WL 2477846, No. 11–20469 (5th. Cir. June 29, 2012).