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PARADIGM INS. v. LANGERMAN LAW OFFICES

No. 1 CA-CV 98-0509.

2 P.3d 663 (1999)

196 Ariz. 573

PARADIGM INSURANCE COMPANY, a foreign insurance company, Defendant Counter claimant-Appellant, v. The LANGERMAN LAW OFFICES, P.A., a professional association, Plaintiff Counter defendant-Appellee.

Court of Appeals of Arizona, Division 1, Department D.

Review Granted May 23, 2000.

Attorney(s) appearing for the Case

Jones, Skelton & Hochuli by Robert R. Berk and Eileen J. Dennis, Phoenix, Attorneys for Defendant/Counterclaimant-Appellant.

Junker Shiaras & Harrington, P.C. by Larry J. Cohen and Neil J. Harrington, Phoenix, Attorneys for Plaintiff/Counterdefendant-Appellee.

OPINION

RYAN, Presiding Judge.

¶ 1 In this appeal, we must decide whether an attorney-client relationship can be created between an insurer and the attorney it hires to represent its insured. We hold that one can be created, and thus the insurer may sue the attorney for malpractice. We also hold that the insurer may not withhold payment of fees owed to the attorney pending resolution of its malpractice claim against that attorney.

I. BACKGROUND...

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