N.M. Court Of Appeals

ATTORNEYS, ARBITRATION – The New Mexico Court of Appeals found that arbitration is adversarial, and an attorney representing a client in arbitration is not liable for aiding and abetting a breach of the client’s fiduciary duty unless the attorney acted outside the scope of representation, acted only in his or her own self-interest and contrary to the client’s interest, or acted in a manner that would fall within the “crime or fraud” exception to the attorney-client privilege. Durham v. Guest           INSURANCE, ATTORNEYS – The New Mexico Court of Appeals rejected the indemnification claim of an insurer whose insured had a former employee embezzle more than $600,000. The appeals court held that the claim fails because the insurer failed to show that derivative liability was established by the defendant’s professional negligence. Affirmed. New Mexico Public Schools Insurance Authority v. Arthur J. Gallagher & Co.