Potomac Electric Power Co. v. California Union Insurance

136 F.R.D. 1, 1990 U.S. Dist. LEXIS 16338, 1990 WL 291497
CourtDistrict Court, District of Columbia
DecidedFebruary 14, 1990
DocketCiv. A. No. 88-2091
StatusPublished
Cited by22 cases

This text of 136 F.R.D. 1 (Potomac Electric Power Co. v. California Union Insurance) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potomac Electric Power Co. v. California Union Insurance, 136 F.R.D. 1, 1990 U.S. Dist. LEXIS 16338, 1990 WL 291497 (D.D.C. 1990).

Opinion

ORDER

JOHN H. PRATT, District Judge.

Since the Fall of 1989, the parties have besieged this Court with six motions to compel. Currently ripe are the last five, four of which require resolution on the merits. Given the deluge of related pleadings we have received, we are tempted to leave the parties to their own resources. Nevertheless, we now address the remaining motions at some length, with the expectation that our discourse will discourage another flood of papers in connection with motions for reconsideration.1

1. Pepco’s Motions to Compel Against Wausau, First State, and National Union

Pepeo, in separate motions, has moved to compel defendants Wausau, First State, and National Union to provide information relating to: (1) communications between these defendants and their reinsurers for the policies that defendants issued to Pep-eo; and (2) third party claims involving pollutants that act similarly to PCBs when spilled on the ground. For the reasons explained below, we hold that Pepeo is not entitled to discovery in the first area, but may conduct limited discovery in the second.

A. Communications With Reinsurers

Rule 26(b)(2) authorizes “discovery of the existence and contents of any insurance agreement under which any person carrying on an insurance business may be liable to satisfy part or all of a judgment which may be entered in the action or to indemnify or reimburse for payments made to satisfy the judgment.” Fed.R.Civ.P. 26(b)(2). Thus, the “existence and contents of” defendants’ reinsurance policies on the Pepeo policies are discoverable.

Defendants assert, however, that correspondence or other documents relating to reinsurance agreements which Pepeo seeks do not fall within the purview of Rule 26(b)(2). We agree, and moreover find that, quite apart from Rule 26(b)(2), the information Pepeo seeks is neither relevant nor “reasonably calculated to lead to the discovery of admissible evidence.” Fed.R. Civ.P. 26(b)(1).

Pepeo demands discovery of “communications which occurred at or around the time” the reinsurance policies were obtained. Pl.Reply Mem. in Supp. of Mot. Against First State and Nat’l Union at 12.2 [3]*3Pepeo baldly asserts that it “is entitled to know what, if anything, [defendants] told their reinsurers^] at the time they applied for reinsurance^] about the terms and conditions of the policies they issued to Pepeo, and about their knowledge of Pepeo and Pepco’s operations.” Id. Pepeo speculates that the correspondence might contain valuable admissions against defendants.

This Court has broad discretion to limit discovery under Rule 26(b)(1). See, e.g., In re Sealed Case, 856 F.2d 268, 271 (D.C.Cir. 1988); In re Multi-Piece Rim Products Liability Litigation, 653 F.2d 671, 679 (D.C.Cir.1981). After carefully examining defendants’ answers to the complaint, we conclude that the correspondence—if it exists—lacks sufficient indicia of relevance. This Court will not authorize a fishing expedition. In addition, the correspondence may well constitute proprietary information or be protected by the attorney-client privilege or the work product doctrine. Therefore, the discovery Pepeo seeks does not appear “reasonably calculated to lead to the discovery of admissible evidence.” In light of these considerations, we hold that defendants need not provide Pepeo with correspondence relating to these reinsurance agreements.

B. Third Party Claims

On the other hand, we hold that Pepeo is entitled to limited discovery in this area. See Independent Petrochemical Corp. v. Aetna Casualty & Surety Co., 117 F.R.D. 283, 286-87 (D.D.C.1986); Carey Canada, Inc. v. California Union Insurance Co., 118 F.R.D. 242, 243-46 (D.D. C. 1986). Defendants shall provide information on third party claims that were either litigated or ultimately paid, and which were filed under similar policies3 for incidents of PCB contamination that occurred during the effective dates of Pepco’s policies with defendants.4

Defendants, aside from objections on the grounds of undue burden and relevance, assert generally that some third party claim information may be protected by the work product doctrine or the attorney-client privilege. We hold that defendants may redact the names of third party insureds from any information they provide. In addition, the precise terms of any settlements need not be disclosed.5 As for any remaining claims of privilege, the Court agrees with Pepeo that the proper procedure is for defendants to compile a privilege log.

II. National Uniones Motion to Compel Against Pepeo

National Union seeks an order compelling Pepeo to answer its First Set of Interrogatories Nos. 9, 25, 26, 27, and 28 more fully. It bases its motion largely on Pep-co’s alleged failure to comply with the procedures for responding to interrogatories outlined under Rule 33. While technically Pepeo may not have adhered to these procedures, we are at a loss to discern how its noncompliance in any way prejudiced National Union. The Court’s time should not be spent on futile exercises. National Union also claims that Pepco’s responses are substantively insufficient. We disagree. In light of the massive amount of discovery that has already taken place in this case, we find that Pepeo has provided National Union with adequate responses, both in form and in substance, to the interrogatories in question.6 Under these circum[4]*4stances, National Union’s continued reliance on the requirements of Rule 33 is without merit.

III. Defendants’ Joint Motion to Compel Against Pepeo

After defendants filed this motion, the parties resolved some of the issues it addressed. The remaining issues are: (1) whether Pepeo must produce documents, including those on its privilege lists, pertaining to its investigation, defense, and settlement of the underlying criminal and civil proceedings for which it seeks insurance coverage; (2) whether Pepeo must produce unredacted copies of legal bills reviewed by attorneys Michael Schatzow and George Mernick in preparation for their depositions; and (3) whether Pepeo must state affirmatively that all responsive documents have been identified. The second and third issues may be dealt with summarily. Pepeo must, consistent with our Orders filed November 6, 1989, and January 5, 1990, produce all documents reviewed by Messrs. Schatzow and Mernick in preparation for their depositions. Additionally, we agree with defendants that Pepco’s privilege logs imply that Pepco’s document production may be incomplete. In order to eliminate any doubt, we shall require Pepeo to inform defendants of whether any documents responsive to defendants’ discovery requests have not been identified.

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Bluebook (online)
136 F.R.D. 1, 1990 U.S. Dist. LEXIS 16338, 1990 WL 291497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potomac-electric-power-co-v-california-union-insurance-dcd-1990.