Golden s policy (attached to her complaint) provides that in the event of an accident, State Farm will pay attorney fees for attorneys chosen by us to defend an insured who is sued (emphasis in original) for damages. 12-3901 its policies that such house counsel may be used. Golden attacks State Farm s practice of using its own in-house attorneys to defend its insureds against third-party claims, alleging that State Farm owes its insureds a duty to explain in 2 No. Cindy Golden brought this purported class action suit against her auto insurer State Farm Mutual Automobile Insurance Company ( State Farm ). ARGUED SEPTEMDECIDED MABefore POSNER, ROVNER, and HAMILTON, Circuit Judges. Appeal from the United States District Court for the Northern District of Indiana, Fort Wayne Division. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant-Appellee. 12-3901 CINDY GOLDEN, Plaintiff-Appellant, v. In the United States Court of Appeals For the Seventh Circuit No. All of her claims depended on the existence of a duty to disclose State Farm had no duty to disclose. The Seventh Circuit affirmed, noting that Golden did not allege that she received deficient representation or that she ever objected to the use of house counsel in her suit. The court denied Golden’s request to certify the question to the Indiana Supreme Court. The district court dismissed, holding that Indiana law creates no obligation to provide advance notification to an insured that an insurer uses house counsel to defend insureds. Golden filed a purported class action, alleging that State Farm owes its insureds a duty to explain in its policies that house counsel may be used. State Farm now routinely uses in-house staff attorneys to represent insureds against such claims. She later filed a purported class action, claiming that “historically and traditionally” State Farm and other insurers defended third-party claims against insureds by hiring private, independent attorneys. Following a collision, Golden was represented by in-house counsel. The mandatory liability portion of her policy provided that State Farm would defend the insured against a third-party lawsuit using attorneys chosen by State Farm. Golden purchased automobile insurance from State Farm.
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