2006-3.

• Case Date: April 25, 2006
• Court: Alaska

Alaska Ethics Opinion 2006. 2006-3. ALASKA BAR ASSOCIATIONETHICS OPINION NO. 2006-3Disclosure of Confidential Insurance Defense Attorney Bills to Non-Insurer Contractors for Electronic Or Computerized "Screening"QUESTIONS The Committee has been asked to give an opinion as to whether it is proper for a lawyer to send confidential defense bills, at the request of a client's insurer, to a computer contractor that is not the insurer for screening through a computerized software program. A secondary question is whether the practice would be allowed without the informed consent of the insured. CONCLUSION It is the committee's opinion that Ethics Opinion 99-1 controls this issue. The lawyer may not disclose, through electronic means, or otherwise confidences and secrets of the client to an outside contractor that is not the insurer without the informed consent of the insured client. DISCUSSION I. Facts The facts presented with this question are helpful in setting the stage for the discussion which follows. In the scenario presented to the Committee, an insurance defense firm is retained by Insurer to represent its insureds in litigation in Alaska. The Insurer agrees to pay defense costs as part of its insurance agreement with the Insured client of the law firm. Insurer requests that the lawyer transmit billings through a third-party computer contractor for initial review and screening. The lawyer's billings contain detailed and confidential statements discussing the lawyer's work on the client's behalf. In the usual case, the bills are "screened" by a computer software program for comparison to certain guidelines established by Insurer. If the lawyer's billings pass the software screen, then the billing is automatically forwarded to Insurer for review and payment by Insurer's claims personnel (a human being). The electronic screen may also raise an electronic red flag which is similarly forwarded automatically to Insurer. In the normal course, the Computer Contractor's employees do not review the lawyer's billings. However, in case of computer malfunction, or other glitch, the employees of Computer Contractor are able to review the confidential billings, for the purpose of correcting possible hardware or software malfunctions. The process is intended to be fully automated. II. Analysis In Alaska Bar Association Ethics Opinion 99-1, the...