Margaret Holland; Donna Ramsey; Carolyn Webster; Garnettealexander, Plaintiff, v. Dewey Bone, Individually and As Principal of Sylviaelementary School, Defendant-appellee,andwilliam Baker, Individually and As County Superintendentofschools of Raleigh County; the Board Ofeducation of the County of Raleigh, Astatutory Corporation, Defendant, v. Continental Casualty Company, a Foreign Corporation, Thirdparty Defendant- Appellant, 818 F.2d 28 (4th Cir. 1987)

Dewey Bone and Continental Casualty Company (Continental) litigated the question of whether Continental was liable for counsel fees for an attorney employed by Bone to represent him in a suit instituted by various teachers against him and other defendants. Continental was the liability insurer of Bone and the other defendants and had covenanted to defend them. The district court ruled Continental liable, and Continental appeals. We affirm.

With commendable candor, Continental, in its reply brief and in oral argument, now tells us that it admits that there was a conflict of interest between Bone and the other insureds which became apparent as the teachers' suit progressed. We think that the nature of the conflict was such that it exi.sted from the onset of the teachers' suit. Although Bone employed his own counsel without proper notice to Continental and without affording Continental the right to select the lawyer to represent Bone, we perceive no prejudice to Continental. It makes no claim that it would have provided either more able or less expensive representation.

It follows that the judgment of the district court should not be disturbed.

AFFIRMED.