MATTHEW W. BRANN, District Judge.
Pending before the Court is a motion to compel discovery, filed by Defendant International Insurance Company of Hannover LTD and International Insurance Company of Hannover SE (hereinafter "Defendants") against Plaintiff Heller's Gas, Inc. (hereinafter "Plaintiff").
The parties engaged in a telephone conference with this Court on April 21, 2016, after which an Order was entered, directing the parties to file simultaneous briefs.
This case arises from an insurance claim filed by Plaintiff, who had been issued a commercial output insurance program property insurance policy by Defendants. Plaintiffs used this policy to insure property that housed six 30,000 gallon tanks filled with approximately 136,800 gallons of liquid propane. On October 11, 2013, Plaintiffs found evidence of a sinkhole beneath the tanks, which had allegedly damaged them. Plaintiff then removed the liquid propane from the tanks, transported the liquid propane to other facilities, disassembled the tanks, and moved them to stable ground at considerable expense. Defendants denied coverage for the loss, aside from $5,000 under emergency removal expense coverage within the policy. Plaintiff subsequently filed the current action, alleging one count of breach of contract and one count of statutory bad faith.
Defendants argue that, after receiving information from various third parties requested through subpoenas, Defendants discovered that Plaintiff failed to produce relevant and discoverable information. For example, Defendants received an email from a records custodian who admitted in the email that there was no physical damage to the propane tanks. This email was discovered, not through documents produced by Plaintiff, but from documents produced from a third party. Defendants request that this Court compel Plaintiff to produce more complete responses to discovery.
Federal Rule of Civil Procedure 26(b)(1), recently amended as of December 1, 2015, provides that "[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense and proportional to the needs of the case . . ."
The party objecting to discovery must state the grounds for the objection with specificity.
As stated above, Defendants seek more complete responses to discovery requests. Plaintiff states, in response, that it has already produced four hundred and thirty-one pages of documents at Defendants' request and that Defendants have suffered no prejudice, as they received the disputed documents, albeit from third parties. Plaintiff's counsel also states that he is "amenable to revisiting the issue with Plaintiff and issuing an appropriate discovery certification."
In its letter dated April 15, 2016, Plaintiff argues that Defendants' Privilege Log contains inadequate descriptions of the withheld and redacted documents. It points to examples where Defendants describe documents that contain "legal analysis" or "legal advice;" these descriptions are arguably too vague to determine the scope of the document and the precise reason for preserving its confidentiality.
Additionally, Plaintiffs argue that much of the information that Defendants seek to protect does not fall within the attorney-client privilege, the work product doctrine, or reserve information. Plaintiffs contend that all but one document is either sent to or from employees of Energi Insurance Services, Inc. (hereinafter "Energi") or York Risk Services Group, Inc. (hereinafter "York"), neither of whom are subsidiaries of or owned by Defendants. According to Plaintiff, therefore, the documents do not fall within the protection of the attorney-client privilege or the work product doctrine.
Defendants argue that the redacted and withheld information is, in fact, protected and need not be disclosed. In their Answer, Defendants do not assert an agency relationship with either Energi, Defendants' broker or third-party administrator, or York, Defendants' authorized claim representative. Curiously, Defendants advance just the opposite in their papers.
Following a review of the parties' supporting briefs and the seventy pages of redacted documents provided to Plaintiff, this Court directed Defendants to submit the documents, unredacted, so that the Court could conduct an in camera review. After thoroughly examining the documents, this Court finds that the information redacted appropriately falls within the attorney-client privilege and work product doctrine and is consequently information directly related to or referencing legal strategy regarding the instant litigation. The correspondence further supports Defendants' latterly-advanced argument that Energi and York are essentially agents of Defendants.
For the reasons set forth herein, Defendants' motion to compel discovery is granted and Plaintiff's request for discovery and for the production of a more detailed Privilege Log is denied.
An appropriate Order follows.