Ex Parte Cuna Mut. Ins. Soc.

822 So. 2d 379, 2001 WL 1450652
CourtSupreme Court of Alabama
DecidedNovember 16, 2001
Docket1001532
StatusPublished
Cited by4 cases

This text of 822 So. 2d 379 (Ex Parte Cuna Mut. Ins. Soc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex Parte Cuna Mut. Ins. Soc., 822 So. 2d 379, 2001 WL 1450652 (Ala. 2001).

Opinion

822 So.2d 379 (2001)

Ex parte CUNA MUTUAL INSURANCE SOCIETY.
(In re Para L. Gaston et al.
v.
Cuna Mutual Insurance Society).

1001532.

Supreme Court of Alabama.

November 16, 2001.

*380 Richard H. Gill, John A. Henig, Jr., and Shannon L. Holliday of Copeland, Franco, Screws & Gill, P.A., Montgomery; and Benjamin H. Brooks III, Vincent A. Noletto, Jr., and Stewart L. Howard of Brooks & Hamby, P.C., Mobile, for petitioner.

Wyman O. Gilmore, Jr., and Hardie B. Kimbrough of Gilmore Law Office, Grove Hill; Clinton W. Watkins, Brentwood, Tennessee; and Seth R. Lesser of Bernstein, Litowitz, Berger & Grossman, L.L.P., New York, New York, for respondent.

LYONS, Justice.

CUNA Mutual Insurance Society ("CUNA") petitions, for a writ of mandamus directing Judge Harold L. Crow of the Clarke Circuit Court to vacate his order of May 25, 2001, denying CUNA's motion for a protective order and directing him to enter such a protective order, or, in the alternative, to grant CUNA's amended motion for a protective order. For the reasons discussed below, we deny the petition.

The underlying litigation is a breach-of-contract and unjust-enrichment action, currently in the class-certification phase. CUNA provides group credit-disability and life insurance to credit unions across the country. Each of the named plaintiffs purchased insurance coverage from CUNA through their credit unions' group policies and they assert the right to represent two distinct subclasses of similarly situated persons. One prospective subclass of insureds alleges that CUNA rejected their claims because they had disabilities resulting from preexisting medical conditions or became disabled because of normal pregnancies. They further allege that such exclusions from coverage were not disclosed in the applications or were not approved by state insurance regulators and, thus, that CUNA could not enforce the exclusions against them. The second prospective subclass of insureds alleges that, while the insureds have not made claims on their policies for disabilities resulting from preexisting medical conditions or from normal pregnancies, they have overpaid for their insurance coverage because, although their applications did not reflect exclusions for disabilities caused by these conditions, the company has serviced policies so as to exclude such claims. In the class-certification phase below, CUNA has conceded the existence of the element of numerosity.

*381 The insureds sought to obtain, through discovery, the names, telephone numbers, and addresses of all insureds whose claims have been denied on the basis of disabilities resulting from preexisting conditions or from normal pregnancies. On March 19, 2001, after a hearing, the trial court issued an order establishing discovery guidelines for the class-certification phase. In its order, the court stated that the insureds requested two categories of discovery:

"(A) The forms provided by CUNA and used by credit unions for the sale of credit disability insurance, and the forms submitted by CUNA and approved by the state insurance departments throughout the United States relating to the sale of credit disability insurance for the period beginning six years prior to February 24, 1998, until the date of this Order; and,
"(B) The identification, telephone number, and address of CUNA insureds who have had credit disability claims denied based on a pre-existing condition or normal pregnancy exclusion for the period beginning six years prior to February 24, 1998, until the date of this Order."

The trial court noted in the March 19 order that the insureds had "significantly narrowed their discovery requests relative to whether the requested putative class should or should not be certified." The court stated that a review to determine any differences between the CUNA forms that were actually used and those forms approved by state insurance departments would assist the court in determining typicality and the necessity of subclasses. The trial court continued:

"The Court also determines that Plaintiffs are entitled to perform their own discovery concerning any differences in CUNA forms used by credit unions as contrasted with CUNA forms approved by the relevant state departments of insurance. By ordering that Plaintiffs be allowed to obtain the identities and location of prospective claims denied class members, the Plaintiffs will be able to perform their own investigation and/or cross check of information provided by CUNA, so as to verify any differences in the CUNA forms used, as contrasted with CUNA forms approved by the relevant state departments of insurance and to verify any locations and the periods of time where the forms were used without Plaintiffs' having to rely solely on information furnished by CUNA. The Plaintiffs, as the parties bearing the burden of proof on the issue of class certification, are entitled to fully explore factual issues that underlie or are pertinent to commonality, typicality, and numerosity of the putative class, or of any putative subclasses, and therefore, identity and location of prospective claims denied putative class members are necessary to facilitate any investigation and review by Plaintiffs."

The order did not state the form in which the information was to be produced or a deadline for its production. The trial court also appointed a special master to decide all discovery disputes in the case.

On April 27, 2001, the insureds, after making an informal request, served on CUNA a request for production, seeking in electronic form the names, addresses, and telephone numbers of denied claimants. On May 3, 2001, CUNA moved for a protective order. CUNA objected to producing the names, addresses, and telephone numbers of the claimants; information regarding the nature of the claimants' disabilities or medical records, other than whether the claim had been denied on the basis of pregnancy or a preexisting condition; and electronic copies of any closed-end lending-form documents.

*382 The special master noted that the March 19 order had already determined that the insureds were entitled to perform their own discovery as to the names, addresses, and telephone numbers of claimants. Thus, the special master allowed discovery of this information. However, he agreed with CUNA as to the other issues. He determined that, at this time, any information about the nature of claimants' disabilities beyond the basic information that their claims had been denied because of pregnancy or a preexisting condition should not be discoverable. He also determined that because the issues presently involve only open-end loan transactions, electronic copies of closed-end lending-form documents were not discoverable.

On May 24, 2001, the trial court adopted the special master's report, ordered the parties to comply with the special master's findings and determinations, and denied CUNA's motion for a protective order regarding the names, addresses, and telephone numbers of denied claimants. On May 25, 2001, one day after the trial judge denied its motion for a protective order, CUNA filed an amendment to its motion for a protective order. In its amendment, CUNA asked the trial court to permit it to submit the names, addresses, and telephone numbers of denied claimants to a professional survey research firm, chosen by agreement between the parties, to conduct a survey to provide the insureds with independent information for the purpose of determining the type of enrollment forms used by prospective class members.

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Bluebook (online)
822 So. 2d 379, 2001 WL 1450652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-cuna-mut-ins-soc-ala-2001.