Is There Rhyme Or Reason To The Scope Of Permissible Reinsurance-Related Discovery?

Carlton Fields

Courts in numerous jurisdictions continue to consider whether reinsurance-related information is discoverable in insurance coverage litigation. Decisions go both ways. Some courts find that reinsurance information and communications are not relevant, or the requests for such information are too broad, and the reinsurance-related discovery is therefore precluded. Other courts, especially where a bad faith claim is alleged against an insurer, hold that reinsurance discovery is fair game. Is there any rhyme or reason to the various holdings? Does a claim for bad faith mean that, automatically, all reinsurance information must be produced? The answer to the latter question is no. The answer to the former question is maybe.

Decisions Precluding Discovery of Reinsurance Information -

Two recent federal court decisions illustrate what limitations can be placed on the scope of reinsurance discovery and provide guidance to parties and their counsel when seeking, and opposing, reinsurance-related discovery.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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