Century Aluminum Co. v. AGCS Marine Insurance

285 F.R.D. 468, 2012 WL 3647484, 2012 U.S. Dist. LEXIS 122242
CourtDistrict Court, N.D. California
DecidedAugust 28, 2012
DocketNo. 11-cv-02514 YGR (NC)
StatusPublished
Cited by3 cases

This text of 285 F.R.D. 468 (Century Aluminum Co. v. AGCS Marine Insurance) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Century Aluminum Co. v. AGCS Marine Insurance, 285 F.R.D. 468, 2012 WL 3647484, 2012 U.S. Dist. LEXIS 122242 (N.D. Cal. 2012).

Opinion

ORDER GRANTING CENTURY’S MOTION TO COMPEL PRODUCTION OF ROBB DOCUMENTS RE: WEATHER CONDITIONS

NATHANAEL M. COUSINS, United States Magistrate Judge.

The issue presented is whether defendant AGCS waived the attorney-client and work product privileges by selectively providing discovery about some of coverage counsel Geoff Robb’s communications but shielding other communications with Robb about defendants’ weather investigation. Century seeks to compel AGCS to produce the shielded Robb documents, arguing that AGCS waived any applicable privileges by its selective disclosure. AGCS counters that documents at issue were not selectively produced and that AGCS has therefore not waived any privileges.

The Court held a hearing on the motion to compel on August 22, 2012. Dkt. No. 207. The Court finds that AGCS, by its selective disclosures, waived any privileges attached to Robb’s communications about the weather investigation. The Court therefore grants Century’s motion to compel as to this category of Robb’s documents.

I. BACKGROUND

This bad faith insurance action arises from a business interruption loss and repair claim made by plaintiff Century and its wholly-owned subsidiary, Nor dural, under a commercial insurance policy issued by defendant AGCS Marine Insurance. See Joint Case Management Statement at 2, Dkt. No. 21. Plaintiffs allege that the insurance policy should cover multi-million dollar losses they suffered when a Nordural transformer was severely damaged while in transit from Norway to Iceland on July 11, 2010. Id. AGCS denied the claim. Id. Century contends that the denial was a breach of contract and that AGCS’s handling of the claim also breached the implied covenant of good faith and fair dealing. Id. AGCS contends that there is no coverage under the policy for Century’s claims for repairs to the transformer and for consequential business interruption, and [470]*470AGCS therefore properly denied Century’s claims. Id.

A. Discovery Dispute regarding AGCS Privilege Assertions.

On July 27, 2012, the parties filed a joint letter brief outlining a dispute as to AGCS’ privilege claims. Joint Letter Brief, Dkt. No. 129. There, Century asserted that AGCS failed to produce hundreds of documents and portions of documents based on improper claims of attorney-client privilege or other protections. Id. at 1. In a supplemental brief regarding waiver of privilege, Century asserts that AGCS selectively produced privileged material that it found favorable, while withholding information less favorable to AGCS. Pl.’s Mot. Compel at 5-6, Dkt. No. 181. The bulk of these documents include communications involving and testimony about attorney Geoff Robb. Id. at 5.

In opposition, AGCS contends that Century can only point to three documents as having been selectively produced: (1) Inouye Ex. 41; (2) Oppermann Ex. 22/Zachariades Ex. 41; and (3) Oppermann ex. 31/Zachar-iades Ex. 46. Def.’s Opp’n Mot. Compel at 3, Dkt. No. 198. AGCS asserts that these documents are either not subject to privilege or were inadvertently disclosed. Id.

1. Coverage Counsel Robb

AGCS hired Robb as coverage counsel soon after Century reported the transformer claim to AGCS. Id. at 2. Century alleges that Robb was “intimately involved in each stage of the claim, Robb was copied on routine claim communications, contacted dozens of potential experts (especially regarding weather/sea conditions), and ultimately was the sole drafter of Allianz’s denial letter, signed by Zachariades without edits.” Id. In addition, Century asserts that AGCS, through Robb, engaged weather expert Bob Cohen. Id. at 3. The Cohen reports and communications have not been produced to Century but instead withheld as privileged. Id. Century asserts that AGCS has intentionally revealed Robb documents concerning the weather/sea conditions investigation that AGCS believes supports its position. Id.

2. Disclosed Exhibits

The first allegedly privileged exhibit that Century points to as selectively produced is Inouye Ex. 41, which contains handwritten notes of an AGCS underwriter in which she notes “A1 Warrington1 reviewing ‘sufficient packaging.’ ” Def.’s Opp’n Mot. Compel at 4. AGCS asserts that the document is not privileged. Id.

The second exhibit Century references is Oppermann Ex. 22/Zachariades Ex. 41, which includes notes of a telephone conference that Robb attended. Id. AGCS again asserts that the notes do not indicate any confidential attorney-client communications were revealed. Id.

Century asserts that in recent depositions AGCS’ counsel permitted examination and testimony about the third exhibit, Opper-mann Ex. 31/Zachariades Ex. 46, a privileged communication from Robb to the “Nordural Team.” Pl.’s Mot. Compel at 4; see also Myers Decl. ¶ 4, Ex. 3 (Zachariades Depo. 309:4-9). AGCS contends that the document is privileged and work product protected and “that [it] was neither voluntarily nor intentionally disclosed by AMIC.” Def.’s Opp’n Mot. Compel at 5. Instead, AGCS asserts that Oppermann brought the un-Bates stamped original document to his deposition. Def.’s Opp’n at 5. The document was then provided to Century’s counsel because AGCS’ counsel mistakenly believed that it had been previously produced. Id. The privileged communication was then marked as Ex. 31 to the Oppermann deposition and subsequently as Ex. 46 to the Zachariades deposition. Id. AGCS claims that this was all in error and now requests that the document be returned under the terms of the parties’ protective order. Id.

II. STANDARD OF REVIEW

Subject matter waiver is governed by Federal Rule of Evidence 502, which applies to [471]*471disclosures of information covered by attorney-client privilege and work product protection. Fed.R.Evid. 502.1 2 Under Rule 502(a), a waiver of the attorney-client privilege or work product protection “extends to an undisclosed communication or information in a federal ... proceeding only if: (1) the waiver is intentional; (2) the disclosed and undisclosed communications or information concern the same subject matter; and (3) they ought in fairness to be considered together.” Fed.R.Evid. 502(a).

III. DISCUSSION

A. Selective Disclosure of Robb Document Amounts to Waiver.

Century contends that it has been “prevented from exploring the critical weather element of the claims ‘investigation’ and denial by [AGCS’] selective invocation of privilege over Robb documents.” Pl.’s Reply at 2. AGCS maintains that the individual documents identified by Century reveal that the documents are either “not subject to privilege or work-product protection or were inadvertently produced by AGCS.” Joint Letter Brief at 4.

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Bluebook (online)
285 F.R.D. 468, 2012 WL 3647484, 2012 U.S. Dist. LEXIS 122242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/century-aluminum-co-v-agcs-marine-insurance-cand-2012.