HSBC Bank USA, National Association v. Stewart Information Services Corporation

CourtDistrict Court, D. Nevada
DecidedFebruary 13, 2023
Docket2:21-cv-00637
StatusUnknown

This text of HSBC Bank USA, National Association v. Stewart Information Services Corporation (HSBC Bank USA, National Association v. Stewart Information Services Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HSBC Bank USA, National Association v. Stewart Information Services Corporation, (D. Nev. 2023).

Opinion

UNITED STATES DISTRICT COURT 1 DISTRICT OF NEVADA 2 * * * 3 HSBC Bank USA, National Association, Case No. 2:21-cv-00637-RFB-BNW 4 Plaintiff, 5 Order v. 6 Stewart Information Services Corporation, et 7 al.,

8 Defendants.

9 10 I. Introduction 11 Pending before the Court is Plaintiff HSBC’s motion to compel. ECF No. 67. Defendant 12 Stewart opposed the motion (ECF No. 69), and Plaintiff replied (ECF No. 70). HSBC seeks to 13 compel Stewart’s Senior Vice President and Chief Underwriting Counsel (Mr. Gosdin) to answer 14 certain questions posed at his deposition about conversations he had with Stewart’s counsel and 15 non-party Fidelity’s counsel. Stewart objected to Mr. Gosdin answering these questions on the 16 basis that they were protected by the common interest privilege. HSBC also requested Stewart 17 and Fidelity’s Common Interest Agreement, which Stewart asserted is privileged and declined to 18 provide. For the reasons discussed below, the Court denies HSBC’s motion to compel. 19 II. Background 20 This is one of the many HOA/lender/title insurance cases in this district. This case, like 21 the other HOA/lender/title insurance cases, stems from allegations that in the 2000s, lenders were 22 insured by title insurers through certain form policies for deeds of trusts. Homeowners’ 23 Associations (HOAs) foreclosed on certain properties. Quiet title actions were then brought to 24 determine whether the lenders’ deeds of trust survived the foreclosure sales. Lenders also made 25 claims to their insurers. The insurers, in turn, determined that the lenders’ claims were not 26 covered by the form policies (or were otherwise excluded from coverage). 27 Here, in short, HSBC had a title insurance policy through Stewart for a particular 1 interest was superior to HSBC’s. This resulted in litigation between the HOA and HSBC. HSBC 2 also made a claim to Stewart under its policies for Stewart to defend and indemnify it. Stewart 3 largely denied HSBC’s claim, and this suit followed. At bottom, the parties disagree about how 4 Stewart’s form policies should be interpreted and what they cover. 5 HSBC contends that the policies should be interpreted to provide coverage and, 6 importantly, that when one looks at how the form policies are discussed in the trade, it becomes 7 clear that Stewart’s policies provide coverage in this situation. In fact, HSBC contends that 8 Stewart’s own Senior Vice President and Chief Underwriting Counsel, Mr. Gosdin, authored a 9 publication that makes this clear. Specifically, Mr. Gosdin authored a publication for the 10 American Bar Association called, “Title Insurance, A Comprehensive Overview.” This 11 publication discusses the form policies at issue in this case and, according to HSBC, confirms that 12 Stewart’s policies provide coverage here. 13 Accordingly, HSBC deposed Mr. Gosdin in this case. Mr. Gosdin disclosed that in 14 preparing for his deposition, he had several discussions with Stewart’s counsel and non-party 15 title-insurer Fidelity’s counsel. Stewart objected, however, to Mr. Gosdin answering any 16 questions about the content of those discussions, asserting that the common interest privilege 17 protected those communications. Stewart also stated that it entered into a Common Interest 18 Agreement with Fidelity, which it asserted was protected by the attorney-client privilege and 19 work product doctrine. HSBC disagreed on both fronts and now seeks to compel Mr. Gosdin to 20 disclose the contents of his communications with Stewart and Fidelity’s counsel, as well as the 21 Common Interest Agreement. 22 III. Analysis 23 There are two issues presented by HSBC’s motion to compel: (1) whether the Common 24 Interest Agreement should be produced and (2) whether Mr. Gosdin’s communications with 25 Stewart and Fidelity’s counsel are protected by the common interest privilege. 26 27 1 A. The Common Interest Agreement 2 On the record before it, the Court declines to decide whether the Common Interest 3 Agreement is privileged. It does not appear that HSBC properly requested this document under 4 the Federal Rules of Civil Procedure or that Stewart has had the opportunity to respond to a 5 proper request under the Rules. It also appears that Stewart has not produced a privilege log 6 (because the document has not been properly requested). And the parties have not briefed the 7 issue of the whether the document is privileged based on the appropriate authority (including 8 whose burden it is to establish that the document is privileged and when that burden shifts based 9 on a privilege log). 10 Accordingly, HSBC may properly seek this document under the Federal Rules of Civil 11 Procedure. Stewart will have 14 days to respond and produce a privilege log, if appropriate. If, 12 after Stewart responds, the parties continue to dispute whether the document is privileged, they 13 must meet and confer. If they still cannot reach a resolution, HSBC may file an appropriate 14 motion and must discuss whose burden it is to show that the document is privileged. 15 B. The Common Interest Privilege 16 The parties agree that Nevada law governs whether the common interest privilege applies. 17 ECF No. 67 at 6, n. 1; ECF No. 69 at 7, 10. The common interest privilege is an extension of the 18 attorney-client privilege, which is codified at NRS § 49.095. NRS § 49.095 provides: 19 A client has a privilege to refuse to disclose, and to prevent any other person from disclosing, confidential communications: 20 21 1. Between the client or the client’s representative and the client’s lawyer or the representative of the client’s lawyer. 22 2. Between the client’s lawyer and the lawyer’s representative. 23 3. Made for the purpose of facilitating the rendition of professional legal services 24 to the client, by the client or the client’s lawyer to a lawyer representing another in a matter of common interest. 25 26 Nev. Rev. Stat. Ann. § 49.095 (West). 27 In other words, for the attorney-client “privilege to apply, the communications must be 1 services, and be confidential.” Wynn Resorts, Ltd. v. Eighth Jud. Dist. Ct. in & for Cnty. of Clark, 2 133 Nev. 369, 374 (2017). The common interest privilege protects communications made to 3 facilitate the rendition of professional legal services to the client when the communications are 4 made by the client or the client’s lawyer to another lawyer representing a different client in a 5 matter of common interest. NRS § 49.095. 6 In determining whether the common interest privilege applies, the Court must engage in a 7 two-step analysis. First, the court must decide whether the information would otherwise be 8 protected by a privilege (e.g., the attorney-client privilege) but for disclosure to a third party. See 9 Cotter v. Eighth Jud. Dist. Ct. in & for Cnty. of Clark, 134 Nev. 247, 250-51 (2018). Second, the 10 court must decide whether disclosing the information to the third party waived the privilege. See 11 id. 12 Here, the parties dispute (1) whether Mr. Gosdin’s communications with Stewart’s 13 counsel are protected by the attorney-client privilege and, (2) if they are, whether the 14 communications with Fidelity’s counsel waived the attorney-client privilege (or are protected by 15 the common interest privilege). The Court will address each issue in turn. 16 i. Whether Mr. Gosdin’s Communications With Stewart’s Counsel Are Protected By the Attorney-Client Privilege 17 18 Mr.

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HSBC Bank USA, National Association v. Stewart Information Services Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hsbc-bank-usa-national-association-v-stewart-information-services-nvd-2023.