Adams v. Allstate Insurance

189 F.R.D. 331, 44 Fed. R. Serv. 3d 1046, 1999 U.S. Dist. LEXIS 14503, 1999 WL 744020
CourtDistrict Court, E.D. Pennsylvania
DecidedSeptember 22, 1999
DocketNo. CIV.A. 96-5670
StatusPublished
Cited by12 cases

This text of 189 F.R.D. 331 (Adams v. Allstate Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. Allstate Insurance, 189 F.R.D. 331, 44 Fed. R. Serv. 3d 1046, 1999 U.S. Dist. LEXIS 14503, 1999 WL 744020 (E.D. Pa. 1999).

Opinion

MEMORANDUM

JOYNER, District Judge.

Plaintiff has filed this action against Allstate Insurance Company (“Allstate”) alleging that it acted in bad faith in handling plaintiffs two underinsured motorist (“UIM”) claims. On June 14, 1999, plaintiff filed a Motion to Compel Defendant’s Production of Documents and Answers to Interrogatories. For the reasons that follow, the motion is granted in part and denied in part.

Background

This action arises out of two unrelated automobile accidents that occurred on March 6, 1989 and September 20, 1991. Plaintiff has sued Allstate, alleging bad faith in handling plaintiffs underinsured motorist claims that arose from these accidents. Plaintiff filed a motion to compel on February 25, 1997, which was dismissed without prejudice when the Court placed this ease in civil suspense awaiting final resolution of plaintiffs underlying underinsured motorist claims. Those claims are now resolved, and the case was removed from suspense on March 25, 1999. On June 14, 1999, plaintiff re-filed his [332]*332motion to compel, which is now before the Court.

Discussion

I. DEFENDANT’S PRIVILEGE CLAIMS

In most of the topics discussed below, defendant raises privileges. Federal Rule of Civil Procedure 26(b)(5) requires a party refusing to disclose on the basis of a privilege to describe the nature of the privileged documents in such a way that the court can determine the applicability of the privilege. Although failure to comply with Rule 26(b)(5) in the first instance can lead to waiver of the privilege, courts ordinarily do not apply the rule so harshly. See Wright, Miller & Marcus, Federal Practice and Procedure: Civil 2d § 2016.1 at 231 (1994). Nevertheless, in this case the court cannot make a determination of the applicability of the privileges without further detail from defendant. Thus, the Court will rule on plaintiffs Motion to Compel without considering defendant’s privilege claims.

To the extent that defendant wishes this court to consider its privilege and confidentiality arguments, it should file with this Court a Motion for Protective Order, including adequate detail to satisfy Rule 26(b)(5), within five (5) days of entry of this order. Plaintiff may respond within fourteen (14) days of defendant’s Motion, if any is made. If defendant files such Motion for Protective Order, it is relieved from complying with this Memorandum and Order with regard to materials covered by its Motion.

II. DISCOVERY OF MATERIAL BEYOND THE DATE OF FILING OF COMPLAINT

Defendant argues that plaintiff is not entitled to discover documents and information beyond the filing date of plaintiffs complaint. However, plaintiffs bad faith claim can include evidence of the insurer’s bad faith that occurred after the filing of the complaint. See O’Donnell v. Allstate Insurance Company, 734 A.2d 901 (Pa.Super.1999). Plaintiff is entitled to discover “any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.” Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351, 98 S.Ct. 2380, 57 L.Ed.2d 253 (1978). Certainly, defendant’s documents and files after the filing of plaintiffs complaint could bear on plaintiffs conduct during that period.

Defendant argues that ODonnell includes an exception for post-filing actions of the insurer’s counsel acting in an adversarial role. See, e.g., ODonnell at 906. This argument is not relevant to the scope of discovery. Plaintiff could find relevant evidence of the insurer’s conduct in the requested documents. Thus, defendant is ordered to comply with plaintiffs discovery requests seeking documents and information beyond the filing date of plaintiffs complaint.

III. DISCOVERY OF FILE OF DOLORES MUELLER

Defendant argues that plaintiff is not entitled to discover material in the file of Dolores Mueller, because “under Pennsylvania law, absent an assignment of rights, a third-party claimant cannot assert that an insurer handled a third-party claim against its insured in bad faith” (Defendant’s Response to Motion to Compel at 8). Defendant misunderstands plaintiffs complaint. Plaintiff has not asserted that defendant acted in bad faith toward Ms. Mueller. Rather, plaintiff alleges that defendant used Ms. Mueller’s claim to delay, in bad faith, plaintiffs claim. Accordingly, defendant is ordered to comply with plaintiffs discovery requests regarding Ms. Mueller’s claim.

IV. DISCOVERY OF CLAIMS MANUALS AND COMPANY POLICIES

Plaintiff requests defendant’s claims manual and training materials. Defendant objects on the grounds that these requests are “overly broad and unreasonably burdensome” (Defendant’s Response to Motion to Compel at 9). This Court agrees with Magistrate Judge Rueter that claims manuals are discoverable, but only the portions relevant to processing the claim in question. See Kaufman v. Nationwide Mutual Insurance Co., 1997 WL 703175 at *2 (E.D.Pa.1997). Accordingly, defendant is ordered to produce [333]*333portions of its claims manuals that relate to the processing of either plaintiffs claim or Dolores Mueller’s claim.

Similarly, defendant’s company policies relating to plaintiffs allegations are discoverable. Defendant is therefore ordered to comply with each of the following discovery requests, to the extent that they relate to the processing of either plaintiffs claim or Dolores Mueller’s claim: Plaintiffs Interrogatories Nos. 8-9 (Allstate’s policies regarding independent medical examinations), 14-15 (procedures relating to Allstate’s relationship with its outside counsel in the past five years), 17 (policies regarding uninsured and underinsured policyholders), and 19 (changes Allstate implemented to its policies as a result of plaintiffs claim), as well as Plaintiffs Requests for Production Nos. 17 (Místate training materials) and 22 (documents regarding the training of Allstate personnel).

Allstate’s claims manuals and company policies may include confidential information. Accordingly, plaintiff is ordered to keep confidential all information discussed in this section of this memorandum.

V. DISCOVERY OF CLAIMS BROUGHT BY OTHER INSUREDS

Plaintiff requests documents and information relating to past claims brought by other Allstate insureds. Past claims by other insureds are not relevant to the present bad faith action before the court. See North River Ins. Co. v. Greater N.Y. Mut. Ins. Co., 872 F.Supp. 1411, 1412 (E.D.Pa.1995). Accordingly, defendant need not comply with plaintiffs discovery requests regarding claims brought by its other insureds, except as discussed in Section III supra.

VI. DISCOVERY REGARDING OVERSIGHT OF ALLSTATE’S OUTSIDE COUNSEL

Plaintiff seeks documents and information relating to Allstate’s relationship with its outside counsel, and its oversight of outside counsel. Defendant argues that these requests are irrelevant. This Court disagrees — the information sought could lead to relevant evidence.

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Bluebook (online)
189 F.R.D. 331, 44 Fed. R. Serv. 3d 1046, 1999 U.S. Dist. LEXIS 14503, 1999 WL 744020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-allstate-insurance-paed-1999.