Carey-Canada, Inc. v. California Union Insurance

118 F.R.D. 242, 1986 U.S. Dist. LEXIS 24860, 1986 WL 15892
CourtDistrict Court, District of Columbia
DecidedMay 29, 1986
DocketCiv. A. No. 83-1105
StatusPublished
Cited by13 cases

This text of 118 F.R.D. 242 (Carey-Canada, Inc. v. California Union Insurance) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carey-Canada, Inc. v. California Union Insurance, 118 F.R.D. 242, 1986 U.S. Dist. LEXIS 24860, 1986 WL 15892 (D.D.C. 1986).

Opinion

MEMORANDUM OPINION

JOHN H. PRATT, District Judge.

Pending before the court are two motions to compel, one filed by the plaintiff and the other submitted collectively by the remaining defendants.1 We have been absolutely deluged with pleadings.2 Not only is the sheer volume of these papers an abuse of the process and adds unmeasur-ably to the expense of this litigation, but the fact that the parties and their counsel have previously tested many of the same issues raised in these motions in other fora compounds the unnecessary burden the parties have placed on the court. All of the parties have long been experienced in asbestos-related litigation and thus they should have been able to work out all or most of these disputes among themselves. We are strongly tempted to leave them to this task. Nevertheless, we consider these motions in turn below in order to discourage another flood of papers in connection with motions to reconsider.

1. Plaintiffs Motion to Compel

On May 7, 1985, we denied plaintiff’s motion for partial summary judgment with respect to whether the term “asbestosis” as used in the various policies at issue is clear and unambiguous.3 We held in that decision that “the evidence to date regarding the meaning and use of the word asbestosis establishes the ambiguity of the term” and that the defendants would thus be permitted “to present extrinsic evidence of the use of the word at trial.” Memo. Opin. at 9. Having been unsuccessful in its efforts to establish the absence of ambiguity in the contracts at issue, plaintiff now seeks to discover the very kind of extrinsic evidence we examined at some length in our memorandum opinion and which the defendants in their opposition to plaintiff’s motion insisted vigorously was relevant and admissible on the question of ambiguity. Although we canvassed categories of extrinsic evidence only in explicit connection with the “admissibility” of such evidence, we are certain that defendants are well aware that the test for discovera-bility is that the information sought be “relevant to the subject matter” and “appears reasonably calculated to lead to the discovery of admissible evidence.” Fed.R. Civ.P. 26(b)(1). For the reasons discussed below, we thus grant plaintiff’s motion to compel with modifications.

The principle thrust of plaintiff’s motion is the disclosure of documents related to the single asbestosis-only issue. For this reason, it seeks to examine the asbestosis and asbestos-related exclusions in insurance policies sold by the defendants to non-[244]*244party insureds.4 Plaintiffs requests thus encompass claims files and payment records, as well as underwriting and policy files.5 Defendants depict such requests as seeking “essentially every document concerning each insured involved in the sale or manufacture of asbestos,” Home Opp. at 10. Defendants contend that such requests are legally irrelevant, overbroad, and unreasonably burdensome.6

A. Relevance

We find defendants’ objections on the grounds of relevance meritless. Defendants essentially argue that policies issued to non-party insureds are not relevant to the actual intent of the negotiating parties at the time the insurance policies at issue were agreed to. However, not only did we cite two policies sold by some of the defendants to non-party insureds in our May 7, 1985 memorandum opinion, but every court to date of which we are aware and which has considered such requests in related asbestos litigation has likewise concluded that such discovery is both relevant and discoverable. See In re Asbestos Insurance Coverage Cases, Judicial Council Coordination Proceeding No. 7072 (Superi- or Court, San Francisco) (“California Coordination Actions”);7 Celotex Corp. v. Aet-na Casualty & Surety Co., No. 79-5885 (Cir.Ct.Hillsborough Cty., Fla.);8 Maryland Casualty Co. v. W.R. Grace & Co., No. 83 Civ. 7451 (S.D.N.Y.) (Bernikow, Mag.). Even were we to accept the parameters of relevancy set out by the defendants, the information about non-party insureds sought by plaintiff arguably bears on the intent of at least one negotiating party, the underwriter, at the time these agreements were reached.9

The relevance of such information, however, cannot be so narrowly defined, as defendants attempt to do. Indeed, they overlook the significance of industry usage in the interpretation of insurance contracts. As one authority has noted “courts have stated that in interpreting insurance contracts, reference should be made to considerations of business and insurance practices. And evidence of usage is admissible to explain a clause in a contract of insurance ... where ambiguous words are employed____” 13 J. Appleman & J. Appleman, Insurance Law & Practice § 7388 (1976); cf. Sunstream Jet Express, Inc. v. International Air Service Co., 734 F.2d 1258, 1269 n. 8 (7th Cir.1984) (under Illinois law, once it is determined that extrinsic and parol evidence is admissible, any relevant evidence is admissible to explain the negoti[245]*245ations between the parties, including evidence of industry custom).

B. Overbreadth

Defendants’ position that plaintiff’s requests are overbroad simply is an amplification of the relevancy argument just discussed and rejected. They contend that plaintiff’s request for documents related to non-party insureds are overbroad in seeking information about policies which (1) were written by underwriters not involved in the policies at issue in the instant litigation and/or (2) were entered into subsequent to the policies at issue in the instant case. Again, defendants choose to ignore our explicit reference to such policies in our May 7, 1985 memorandum opinion. Moreover, defendants’ own discovery requests belie their position. In their own motion to compel, they request counsel’s drafts of portions of Jim Walter Corporation’s annual reports. Although defendants contend that these drafts relate to the contemporaneous understanding of the Jim Walter Corporation of the asbestosis exclusions, nowhere in this motion do defendants restrict these requests to documents relating only to attorneys who worked with the brokers who negotiated the policies before the court. Likewise, in seeking these documents which describe policy revisions of asbestos-related coverage, defendants impliedly acknowledge the probative relevance of subsequent revisions of exclusionary clauses.10 Defendants, in effect, have requested the mirror image of what they object to producing to plaintiff.

C. Burdensomeness

We are, however, fully aware of the enormity of the discovery sought and the heavy burden such would impose on the defendants. The descriptions by some of the defendants of their experiences in the California Coordination Actions are instructive and give us pause. Although the burden of such discovery must be evaluated in light of how much is at stake in this litigation, we must also weigh the likely value of the discovery sought.

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Cite This Page — Counsel Stack

Bluebook (online)
118 F.R.D. 242, 1986 U.S. Dist. LEXIS 24860, 1986 WL 15892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carey-canada-inc-v-california-union-insurance-dcd-1986.