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FCA Does Not Authorize In-House Counsel/Relator to Reveal Client Confidences

Client Alert | 1 min read | 11.18.13

In Fair Lab. Practices Assocs. v. Quest Diagnostics (Oct. 25, 2013), the Second Circuit affirmed the dismissal of a qui tam suit that was brought by a general partnership formed for the purpose of bringing the suit because (1) the partnership included the defendant's former general counsel, and (2) the former general counsel violated his ethical obligations by divulging confidential client information in pursuit of the litigation, notwithstanding that a non-lawyer member of the partnership initiated the suit. While the Second Circuit did not create a bright-line rule barring all in-house lawyers from using client information in FCA cases, it did strike a balance between a lawyer's ethical obligations to the client and the government's competing interest in encouraging "whistleblowers" to report fraud, finding that the disclosure exceeded what was necessary to prevent the client from committing a crime.


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Client Alert | 5 min read | 06.01.26

California Court Upholds Insurer’s Duty to Defend After Covered Claim Is Dismissed

On April 30, 2026, the U.S. District Court for the Northern District of California issued a significant ruling in an insurance coverage dispute between a commercial general liability insurer and its policyholder. The decision addresses several critical issues in insurance law, including the scope and continuity of the duty to defend and the standard for insurer reimbursement of defense costs in mixed-claim actions. The court ruled largely in favor of the insured, SVO Building One, LLC ("SVO"), and the matter now heads toward settlement or trial on SVO's remaining counterclaims....