Guarantee Insurance v. Heffernan Insurance Brokers, Inc.

300 F.R.D. 590, 2014 WL 2653480, 2014 U.S. Dist. LEXIS 80757
CourtDistrict Court, S.D. Florida
DecidedJune 13, 2014
DocketNo. 13-23881-CIV
StatusPublished
Cited by5 cases

This text of 300 F.R.D. 590 (Guarantee Insurance v. Heffernan Insurance Brokers, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guarantee Insurance v. Heffernan Insurance Brokers, Inc., 300 F.R.D. 590, 2014 WL 2653480, 2014 U.S. Dist. LEXIS 80757 (S.D. Fla. 2014).

Opinion

OMNIBUS DISCOVERY ORDER

JONATHAN GOODMAN, United States Magistrate Judge.

This Cause is before the Undersigned to resolve an outstanding issue related to Socius Insurance Services, Inc.’s (“Socius,” and, together with Heffernan Insurance Brokers, Inc., “Defendants”) Renewed Motion to Compel Production of Documents and Privilege Log from Plaintiff. [ECF No. 91]. Certain other issues in the motion, as well as those in several other discovery motions, were addressed in prior Orders issued by the Undersigned on May 7, 2014 and May 30, 2014. [ECF Nos. 106; 124]. However, there remains an issue regarding potential waiver of certain privileged and/or work-product-protected documents under the at-issue doctrine or through a previous, intentional disclosure of a potentially privileged attorney-client communication containing extensive attorney work product. This Order addresses those waiver theories.1

In short, the Undersigned finds that Plaintiff has not waived either the attorney-client privilege or work product protection by placing causation at issue in this case. However, by disclosing an opinion letter from counsel containing extensive analysis of the underlying state litigation (the settlement of which led to this current litigation), Plaintiff has waived the attorney-client privilege for communications on that same specific subject matter (as described and defined below) and any work product protection that letter would otherwise be afforded—but not the work product protection afforded other materials.

I. Factual Background

Plaintiff, a worker’s compensation insurer, filed this case on the same day that it settled an underlying state litigation. That state litigation (the “Leon Tort Claim”) was brought by a worker’s compensation claimant who sued Plaintiff for intentional infliction of emotional distress based on how it handled his claim.

Defendants in the instant federal case are Plaintiffs insurance agent and insurance broker. Plaintiff alleges that the Defendants failed to timely notify its excess carrier insurer, Catlin, about the Leon Tort Claim, and that, as a result, Catlin refused to cover any portion of the Leon settlement amount. [593]*593Plaintiffs claims against Defendants, for negligence and breach of fiduciary duty, seek as damages the amount that Catlin would have paid to Plaintiff for the Leon settlement if it covered the claim in full. One critical issue in this case is whether Defendants’ alleged breaches actually caused Plaintiffs damages, and whether that causation issue is even subject to litigation in this proceeding.2 Many of the discovery disputes to date have related to materials on these points.

On February 17, 2014, Defendants propounded requests for production to Plaintiff that requested, among other things, a wide variety of materials related to the Leon Tort Claim. Plaintiff, in response, asserted that much of these materials are protected from disclosure by the attorney-client privilege or work product protection. This issue was briefed extensively and the Court held two hearings on these and other related discovery issues. The privilege issues are resolved in this Order.

II. At-issue Waiver

In response to Plaintiffs assertions that certain materials related to the Leon Tort Claim or its settlement are protected as work product or by the attorney-client privilege, Defendants argue, in part, that any applicable privilege is waived here by the “at-issue” doctrine. According to Defendants, Plaintiff waived the attorney-client privilege and work product protection when it brought this suit because the litigation necessarily places at issue the merits of the Leon Tort Claim and the reasonableness of its settlement. Materials related to those issues would substantiate Defendants’ theory that Catlin would not have provided full coverage, or perhaps any coverage, for the Leon Tort Claim even if Catlin was timely notified of the claim.

This is a federal diversity action. As such, state law, and specifically Florida state law, governs attorney-client privilege issues, while federal law governs work product doctrine issues. Milinazzo v. State Farm Ins., 247 F.R.D. 691, 696-700 (S.D.Fla. 2007) (citing E. Epstein, The Attorney-Client Privilege and the Work-Product Doctrine, 1131-32 (5th ed. 2006), and noting that attorney-client communication issues are substantive in nature and are therefore governed by the forum state’s law, while work product doctrine issues are considered procedural, and are therefore governed by the Federal Rules of Civil Procedure and federal case law). Both Florida and federal law provide for privilege waiver via the “at-issue” doctrine, though the analysis differs somewhat under each standard. See, e.g., Coates v. Akerman, Senterfitt & Eidson, P.A., 940 So.2d 504, 508 (Fla. 2nd DCA 2006) (applying Florida “at-issue” waiver doctrine); Chick-fil-A v. ExxonMobil Corp., No. 08-61422-CIV, 2009 WL 3763032, at *7 (S.D.Fla. Nov. 10, 2009) (applying federal “at-issue” waiver doctrine).

a. At-issue Waiver of the Attorney-Client Privilege Under Florida Law

Florida law disfavors waiver of the attorney-client privilege. Compare Coates, 940 So.2d at 508 (noting attorney-client privilege waiver is not favored in Florida and refusing to find waiver based on the at-issue doctrine) with Christenbury v. Locke Lord Bissell & Liddell, LLP, 285 F.R.D. 675, 683 (N.D.Ga.2012) (applying Georgia law, discussing Coates, and finding waiver via the at-issue doctrine because, unlike Florida courts, Georgia courts “confine the attorney-client privilege ‘to its narrowest permissible limits’ ”) (internal citation omitted). Under Florida law, at-issue waiver only occurs “when a party ‘raises a claim that will necessarily require proof by way of a privileged communication.’” Coates, 940 So.2d at 508 (quoting Jenney v. Airdata Wiman, Inc., 846 So.2d 664, 668 (Fla. 2nd DCA 2003)) (emphasis in original). It follows that a party does not waive the privilege simply by bringing or [594]*594defending a lawsuit. Id. (internal citations omitted).

This case is similar to several others in Florida courts where no at-issue waiver was found. In Coyne v. Schwartz, Gold, Cohen, Zakarin & Kotler, P.A., 715 So.2d 1021, 1022 (Fla. 4th DCA 1998), for example, the plaintiff sued defendants for legal malpractice and defendants argued that a successor law firm provided advice identical to its own allegedly wrong advice, “thereby raising possible issues of causation and intervening negligence.” Id. Defendants argued that any attorney-client privilege between plaintiff and that successor counsel was waived when defendants asserted that successor counsel was negligent. The court refused to find waiver, noting that while it recognized “that the fact that respondents have pointed to the negligence of the successor firm as a defense to the malpractice suit may make the requested documents relevant ... the mere relevance of those documents does not override the privilege.” Id. at 1023.

Other Florida courts have reached similar results. The Coates court, also dealing with an attorney malpractice claim where the defense was that other professionals negligently provided advice, put it this way:

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300 F.R.D. 590, 2014 WL 2653480, 2014 U.S. Dist. LEXIS 80757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guarantee-insurance-v-heffernan-insurance-brokers-inc-flsd-2014.