eQHealth AdviseWell, Inc. v. Homeland Insurance Company of New York

CourtDistrict Court, M.D. Louisiana
DecidedOctober 18, 2022
Docket3:22-cv-00050
StatusUnknown

This text of eQHealth AdviseWell, Inc. v. Homeland Insurance Company of New York (eQHealth AdviseWell, Inc. v. Homeland Insurance Company of New York) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
eQHealth AdviseWell, Inc. v. Homeland Insurance Company of New York, (M.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF LOUISIANA

EQHEALTH ADVISEWELL, INC. CIVIL ACTION F/K/A EQHEALTH SOLUTIONS, INC.

VERSUS NO. 22-50-BAJ-EWD HOMELAND INSURANCE COMPANY OF NEW YORK

RULING AND ORDER

Before the Court is the Motion to Compel Responses to Requests for Production (“Motion to Compel”), filed by Plaintiff eQHealth AdviseWell, Inc. (“Plaintiff’). The Motion to Compel is opposed by Defendant Homeland Insurance Company of New York (“Homeland”).1 The 0F information sought, related to loss reserve information as to the claim asserted by Plaintiff, is relevant to Plaintiff’s bad faith claims in this case. However, because Homeland’s privilege log and the Declaration of Linda Unger are insufficient, Homeland will be ordered to provide a revised privilege log that complies with Local Civil Rule 26(c). The Motion to Compel will be terminated to permit further discussions among the parties regarding the withheld reserve information after a revised privilege log is provided. Additionally, Homeland’s Motion for Leave to File Sur-Reply (“Motion for Leave”) will be denied.2 1F I. BACKGROUND

On July 28, 2022, a telephone conference was held with the parties to discuss three motions to compel discovery requests propounded by Plaintiff on Homeland.3 After the guidance provided, 2F Plaintiff voluntarily withdrew its motion to compel responses to requests for admissions, and the

1 R. Docs. 54, 75 and see Reply at R. Doc. 78. 2 R. Doc. 87. 3 See R. Doc. 70. parties resolved all the issues raised in the other two motions to compel, except for Plaintiff’s Request for Production (“RFP”) No. 20, which seeks “All documents reflecting your loss reserve for the present claim.”4 In its supplemental and amended objections and responses, Homeland objected to 3F RFP No. 20 on the grounds that: “[RFP No. 20 is] irrelevant and not reasonably calculated to lead to the discovery of admissible evidence as the law is clear that an insurer’s reserve estimate does not represent an undisputed amount to be paid by an insurer, reserves are highly speculative and unreliable, and often include information protected by privilege. Homeland further objects to Request for Production No. 20 to the extent it seeks production of information that is not required to be produced pursuant to the attorney-client privilege, [or] the work product doctrine….”5 4F Homeland produced a privilege log. According to Homeland, the last log entry corresponds to the documents withheld in response to RFP No. 20.6 5F II. LAW AND ANALYSIS

A. Applicable Legal Standards Under Rule 26 of the Federal Rules of Civil Procedure, parties may obtain discovery regarding any nonprivileged matter that is relevant to a claim or defense7 and proportional to the 6F needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the

4 R. Doc. 75-5, p. 20. 5 R. Doc. 75-5, p. 20. Homeland’s response to RFP No. 20, reproduced in the Motion to Compel at R. Doc. 54-1, p. 21, was Homeland’s original response, which contained an objection as to vagueness that Homeland later withdrew. Homeland also originally objected to RFP No. 20 on the ground that the information sought was confidential and proprietary; however, as Homeland notes, this objection has been mooted by the entry of a joint protective order agreed to by the parties. R. Docs. 75, p. 4 and R. Doc. 86. 6 R. Doc. 75-6. 7 Crosby v. Louisiana Health Service and Indem. Co., 647 F.3d 258, 262 (5th Cir. 2011) (“Generally, the scope of discovery is broad and permits the discovery of ‘any nonprivileged matter that is relevant to any party’s claim or defense.’”), citing Fed. R. Civ. P. 26(b)(1) and Wyatt v. Kaplan, 686 F.2d 276, 283 (5th Cir. 1982). proposed discovery outweighs its likely benefit.8 “For purposes of discovery, relevancy is 7F construed broadly to encompass any matter that bears on, or that reasonably could lead to other matters that could bear on, any issue related to the claim or defense of any party.”9 “It is well settled 8F law that magistrate judges are afforded broad discretion in ruling on discovery matters.”10 9F B. The Loss Reserve Information is Relevant to Plaintiff’s Bad Faith Claim

Plaintiff has alleged that Homeland wrongfully denied coverage over a claim asserted by Plaintiff under the parties’ insurance contract. Plaintiff also asserts that Homeland engaged in bad faith under Louisiana law when it denied coverage.11 Plaintiff asserts that the loss reserve 10F information sought in RFP No. 20 is relevant because the loss reserves contain Homeland’s opinion regarding its potential liability in the case, which is dependent on whether coverage exists—an issue in this case. Plaintiff also asserts that loss reserves are relevant to Homeland’s bad faith in denying coverage and may lead to the discovery of admissible evidence regarding the thoroughness of Homeland’s investigation and consideration of Plaintiff’s claim.12 According to Plaintiff, loss 11F reserves “could well belie a later claim that the insurer thought in good faith that there was no possibility of the claim falling within coverage.”13 12F Homeland contends that the production of loss reserves will not lead to the discovery of admissible evidence because reserves are based on opinion, which may be speculative.14 Relying 13F

8 Fed. R. Civ. P. 26(b)(1). 9 Chisum v. Mercedes-Benz USA, LLC, 534 F.Supp.3d 608, 614 (M.D. La. 2021). 10 Albemarle Corp. v. Chemtura Corp., No. 05-1239, 2008 WL 11351528, at *1 (M.D. La. Apr. 22, 2008), citing Merritt v. International Bro. of Boilermakers, 649 F.2d 1013 (5th Cir. 1981). 11 See R. Doc. 31 regarding Plaintiff’s claims, and in particular, p. 9 (alleging bad faith). 12 R. Doc. 54-1, p. 22, citing Culbertson v. Shelter Mutual Insurance Co., No. 97-1609, 1998 WL 743592 (E.D. La. Oct. 21, 1998) and R. Doc. 78. 13 R. Doc. 78, p. 2, citing Trinity East Energy, LLC v. St. Paul Surplus Lines Ins. Co., No. 11-814, 2013 WL 12124022, at *2 (N.D. Tex. Mar. 8, 2013) (quotation marks and citation omitted) and see id., citing Alta Vista Productions, LLC v. St. Paul Fire & Marine Ins. Co., No. CIV.A. 10-1948, 2011 WL 3290395, at *2 (E.D. La. Aug. 1, 2011) (“The setting of reserves bears some relationship to the insurer’s calculation of potential liability, and have been found to be discoverable when bad faith is asserted”), quoting Brothers Petroleum, LLC v. Underwriters at Lloyd’s London, 2008 WL 11509278, *2 (E.D. La. July 2, 2008). 14 R. Doc. 75, p. 5.

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eQHealth AdviseWell, Inc. v. Homeland Insurance Company of New York, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eqhealth-advisewell-inc-v-homeland-insurance-company-of-new-york-lamd-2022.