Planalto v. Ohio Casualty Insurance

256 F.R.D. 16, 2009 U.S. Dist. LEXIS 15729
CourtDistrict Court, D. Maine
DecidedFebruary 26, 2009
DocketCivil No. 07-142-P-H
StatusPublished
Cited by1 cases

This text of 256 F.R.D. 16 (Planalto v. Ohio Casualty Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Planalto v. Ohio Casualty Insurance, 256 F.R.D. 16, 2009 U.S. Dist. LEXIS 15729 (D. Me. 2009).

Opinion

MEMORANDUM DECISION ON DISCOVERY DISPUTE/MOTION TO COMPEL

JOHN H. RICH III, United States Magistrate Judge.

In accordance with the terms of my Report of Hearing and Order re: Discovery Dispute dated January 11, 2009 (Docket No. 95), the parties have submitted timely supplemental briefs concerning, inter alia, whether about 1,000 pages of documents, withheld by the plaintiff, Planalto, from the file of the law firm Thompson & Bowie pertaining to its defense of Avian Farms in the case underlying this reach-and-apply action, are protected by the work product doctrine. Those briefs address whether the work performed by Thompson & Bowie in that underlying action was performed solely for Avian Farms, the insured, or for Avian Farms and the insurers who retained Thompson & Bowie. The parties were also directed to examine how this question affected the scope of the application [18]*18of the work product doctrine to materials provided to Granja Planalto by Thompson & Bowie.

For the reasons that follow, I now deny the defendant, Ohio Casualty’s, request seeking to compel the production of the approximately 1,000 pages that have been withheld. I also deny Ohio Casualty’s request for communications between Planalto’s employee experts and Planalto’s counsel pursuant to the attorney-client privilege.

I. The Work Product Issue

With respect to the 1,000 pages at issue, the two questions for supplemental briefing are so phrased largely because Ohio Casualty claims that Fed.R.Civ.P. 26(b)(3) defines the work product doctrine only in terms of parties to the action presently pending. Accordingly, since none of the settling insurers is a party to this action, Ohio Casualty argues that Planalto may not withhold any documents created in the underlying action on the basis of the work product doctrine. Planalto contends that Avian Farms had ceased all business activities at the time of the underlying action and had assigned all of its remaining assets for the benefit of its creditors, so only the insurers who retained Thompson & Bowie could have been, in actuality, the law firm’s clients. Planalto’s Supplemental Memorandum on Discovery Conference Issues (“Planalto Supplement”) (submitted by e-mail to newcases. portland@med.uscourts.gov and thus not appearing on the docket) at 1-4. Ohio Casualty now takes the position that whether the insurers were clients of Thompson & Bowie is irrelevant; the real issue, it asserts, is “for what purpose and on whose behalf the work product was produced.” Defendant Ohio Casualty’s Supplemental Memorandum Regarding its Motion to Compel the Thompson and Bowie Documents that Have Been Withheld by Plaintiff Granja Planalto (“Ohio Casualty Supplement”) (submitted by e-mail to newcases.portland@med.uscourts.gov and thus not appearing on the docket) at 1.

Ohio Casualty appears to concede, Ohio Casualty Supplement at 5, Planalto’s argument that it was no longer adverse to Avian Farms when it obtained the documents at issue pursuant to its settlement agreement with Avian Farms’ insurers,1 contrary to Ohio Casualty’s initial argument that Avian Farms and/or its insurers waived the protection of the work product doctrine when the documents were transferred to Planalto. This concession comports with applicable First Circuit precedent to the effect that the work product doctrine is “not as easily waived as the attorney-client privilege,” and that “only disclosing material in a way inconsistent with keeping it from an adversary waives work product protection.” United States v. Massachusetts Inst. of Tech., 129 F.3d 681, 687 (1st Cir.1997). After the settlement of the underlying case, disclosure of materials held by Thompson & Bowie to Planalto was required by the settlement agreement and was not inconsistent with keeping it from an adversary. Planalto clearly was no longer an adversary of Avian Farms at that point, even assuming that it had been earlier. Nor was it an adversary of the settling insurers.2

[19]*19Ohio Casualty’s argument that Planalto was not involved in a joint defense with Avian Farms at any time and therefore “has no authority to preclude disclosure of work product generated for Avian Farms,” Ohio Casualty Supplement at 5, sets up a straw man. Planalto has never made such an argument, and the case law Ohio Casualty cites is limited to circumstances in which joint defense agreements did exist.

Ohio Casualty devotes considerable effort to its contention that Avian Farms is not a party to the settlement agreement, that Planalto is only required by the terms of that agreement to defend and indemnify the settling insurers, and therefore that it cannot invoke the agreement as the basis of its assertion of work product protection. Id. at 2-5. But that argument ignores the fact that Avian Farms’s assignee is apparently a party to the settlement agreement, see Settlement Agreement and Release (Docket No. 43-4) at 1, whom Planalto did agree to indemnify, id. ¶¶ 3 & 7, making it at least arguable that Planalto has in fact succeeded to Avian Farms’s interest in the documents. Nor is Planalto’s indemnification argument the only basis it asserts for invoking the protection of the doctrine.

Planalto cites case law holding that defense counsel retained by an insurer to defend its insured represents both the insurer and the insured in the absence of a conflict. Planalto Supplement at 4-5; see generally Nevada Yellow Cab Corp. v. Eighth Judicial Dist. Ct., 123 Nev. 44, 152 P.3d 737, 741 (2007) (this is “majority rule”); Spratley v. State Farm Mut. Automobile Ins. Co., 78 P.3d 603, 607 (Utah 2003); Paradigm Ins. Co. v. Langerman Law Offices, P.A., 200 Ariz. 146, 24 P.3d 593, 598 (2001); State Farm Mut. Automobile Ins. Co. v. Federal Ins. Co., 72 Cal.App.4th 1422, 1428-29, 86 Cal.Rptr.2d 20, 24-25 (1999). Given that Avian Farms was, as Planalto terms it, “defunct” by the time that the underlying action was brought, it is difficult to discern how its interests could have conflicted with those of its primary insurers. None of its assets were in jeopardy; it had none.

Ohio Casualty’s view of the strictures of Rule 26(b)(3) is opposite to that of the emerging majority of courts, which hold that work product protection extends from one case to subsequent litigation. See, e.g., Louisiana Muni. Police Emps. Retirement Sys. v. Sealed Air Corp., 253 F.R.D. 300, 309 & n. 3 (D.N.J.2008), and Jumper v. Yellow Corp., 176 F.R.D. 282, 286 (N.D.Ill.1997).

Even more valuable for purposes of the present dispute is Judge Carter’s decision in Maine v. Norton, 208 F.Supp.2d 63 (D.Me. 2002), in which he found that the documents at issue in a discovery dispute had been “created in anticipation of the Defenders of Wildlife suit,” id. at 67, an earlier action in the District of Columbia. He wrote:

In FTC v. Grolier, Inc., 462 U.S. 19, 28, 103 S.Ct. 2209, 76 L.Ed.2d 387 ...

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Cite This Page — Counsel Stack

Bluebook (online)
256 F.R.D. 16, 2009 U.S. Dist. LEXIS 15729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/planalto-v-ohio-casualty-insurance-med-2009.