Stillinger v. Lumico Life Insurance Company

CourtDistrict Court, D. South Carolina
DecidedJuly 29, 2025
Docket2:24-cv-01853
StatusUnknown

This text of Stillinger v. Lumico Life Insurance Company (Stillinger v. Lumico Life Insurance Company) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stillinger v. Lumico Life Insurance Company, (D.S.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION

BILLIE BETH STILLINGER, ) ) Plaintiff/Counterclaim-Defendant, ) ) No. 2:24-cv-01853-DCN vs. ) ) ORDER LUMICO LIFE INSURANCE COMPANY, ) ) Defendant/Counterclaim-Plaintiff. ) _______________________________________)

This matter is before the court on two of defendant Lumico Life Insurance Company’s (“Lumico”) motions. The first is Lumico’s motion for a protective order regarding certain topics in plaintiff Billie Beth Stillinger’s (“Ms. Stillinger”) notice of Fed. R. Civ. P. 30(b)(6) deposition, ECF No. 40. The second is Lumico’s motion to compel Ms. Stillinger’s responses to its interrogatory requests, ECF No. 41. For the reasons set forth below, the court grants in part and denies in part Lumico’s motion for a protective order and grants in part and denies in part Lumico’s motion to compel. I. BACKGROUND On or about January 6, 2022, Guyman Stillinger (“Mr. Stillinger”) completed a telephonic application for a $400,000 ten-year simplified issue term life insurance policy. ECF No. 5, Countercl. ¶ 7. Mr. Stillinger was asked questions during the recorded call, including: In the past [five] years, have you (a) received treatment by a member of the medical profession for, or (b) been diagnosed or been advised by a member of the medical profession to seek treatment for, or (c) consulted with a medical professional regarding: . . . b. Cirrhosis, Hepatitis C, stroke, brain tumor, leukemia, or any cancer (other than non-metastatic basic cell carcinoma or squamous cell carcinoma)? . . . d. Uncontrolled diabetes or diabetes related complications such as hypoglycemia, retinopathy, neuropathy, cerebrovascular or peripheral vascular disease? Id. ¶¶ 8–9 (alterations in original) (quoting ECF No. 5-3 at 22). Mr. Stillinger responded “no” to each of these questions, and provided a verbal authorization acknowledging that the answers in his application were true and complete to the best of his knowledge and belief and that Lumico’s liability would be limited if the answers he gave were not true. Id. ¶¶ 10–11. On or about January 28, 2022, Lumico issued policy number L2643208 (the “Policy”) based on the answers in Mr. Stillinger’s application, which named Ms. Stillinger as the primary beneficiary on the Policy. Id. ¶¶ 12–14. The Policy also included an “INCONTESTABILITY” section, which stated as follows: Except for non-payment of Premium and fraud in the procurement of the Policy where permitted by applicable law in the state where the Policy is delivered or issued for delivery, [Lumico] cannot contest the coverage after the Policy has been in force during the lifetime of the Insured for two years from its Issue Date [i.e., January 28, 2022]. Coverage will only be contested based on a statement contained in the Application for coverage attached to this Policy and only if the statement is material to the risk accepted or the hazard assumed by Us. Id. ¶ 16 (alterations in original) (quoting ECF No. 5-3 at 13). Sadly, Mr. Stillinger died on November 29, 2022. Id. ¶ 17. Ms. Stillinger then submitted a claim for benefits on the Policy. Id. ¶ 18. During a routine investigation, Lumico discovered that, contrary to his answers in his application, Mr. Stillinger had been diagnosed and received treatment for diffuse large b-cell lymphoma and uncontrolled diabetes during the five-year period preceding his application. Id. ¶¶ 19–21. Lumico claims that, if it had been aware of these medical conditions, it would not have issued the Policy. Id. ¶ 22. Lumico sent Ms. Stillinger a letter on June 16, 2023, to inform her that, based on the discovery of Mr. Stillinger’s medical records, it was denying her claim and rescinding the Policy. ECF No. 5-1 at 1. In this letter, Lumico offered to mutually rescind the

Policy and return all premiums that the Stillingers had paid on the Policy with interest. Id. Ms. Stillinger refused Lumico’s mutual rescission agreement and did not cash Lumico’s check for the returned premium payments. Id. Ms. Stillinger initiated this lawsuit against Lumico on April 12, 2024, based on Lumico’s failure to pay her claim. ECF No. 1, Compl. She alleges causes of action for: (1) breach of contract; (2) insurance bad faith; (3) negligence/recklessness; and (4) unfair claims practices. Id. ¶¶ 41–62. On May 30, 2024, Lumico answered Ms. Stillinger’s complaint and asserted a counterclaim against her for rescission of the Policy. ECF No. 5, Countercl. ¶ 26.

II. STANDARD A. Motion for a Protective Order Standard “The court may, for good cause, issue an order to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense” by forbidding or limiting the scope of discovery. Fed. R. Civ. P. 26(c)(1). “The party moving for a protective order bears the burden of establishing good cause.” Webb v. Green Tree Servicing LLC, 283 F.R.D. 276, 278 (D. Md. 2012). “Normally, in determining good cause, a court will balance the interest of a party in obtaining the information versus the interest of his opponent in keeping the information confidential or in not requiring its production.” UAI Tech., Inc. v. Valutech, Inc., 122 F.R.D. 188, 191 (M.D.N.C. 1988). In other words, “the Court must weigh the need for the information versus the harm in producing it.” A Helping Hand, LLC v. Balt. Cnty., 295 F. Supp. 2d 585, 592 (D. Md. 2003) (internal quotation marks omitted). “The standard for issuance of a protective order is high.” Nix v. Holbrook, 2015 WL 631155, at *2 (D.S.C. Feb. 13, 2015) (citing

Minter v. Wells Fargo Bank, N.A., 258 F.R.D. 118, 125 (D. Md. 2009)). However, courts are afforded broad discretion “to decide when a protective order is appropriate and what degree of protection is required.” Seattle Times Co. v. Rhinehart, 467 U.S. 20, 36 (1984). Additionally, Rule 30(b)(6) of the Federal Rules of Civil Procedure addresses deposition discovery directed to an organization. It provides that a deposition notice “must describe with reasonable particularity the matters for examination,” and the “named organization must designate one or more officers, directors, or managing agents, or designate other persons who consent to testify on its behalf; and it may set out the

matters on which each person designated will testify.” Fed. R. Civ. P. 30(b)(6). Then, the organization must prepare the designated person so that he can “testify as to matters known or reasonably available to the organization.” Id. B. Motion to Compel Standard Federal Rule of Civil Procedure 26 provides that, unless otherwise limited by court order, [p]arties may obtain discovery regarding any non-privileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden of expense of the proposed discovery outweighs its likely benefit.

Fed. R. Civ. P. 26(b)(1).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hickman v. Taylor
329 U.S. 495 (Supreme Court, 1947)
Oppenheimer Fund, Inc. v. Sanders
437 U.S. 340 (Supreme Court, 1978)
Seattle Times Co. v. Rhinehart
467 U.S. 20 (Supreme Court, 1984)
Commissioner v. Banks
543 U.S. 426 (Supreme Court, 2005)
A HELPING HAND, LLC v. Baltimore County, Md.
295 F. Supp. 2d 585 (D. Maryland, 2003)
Minter v. Wells Fargo Bank, N.A.
258 F.R.D. 118 (D. Maryland, 2009)
Webb v. Green Tree Servicing LLC
283 F.R.D. 276 (D. Maryland, 2012)
UAI Technology, Inc. v. Valutech, Inc.
122 F.R.D. 188 (M.D. North Carolina, 1988)
Brittain v. Stroh Brewery Co.
136 F.R.D. 408 (M.D. North Carolina, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
Stillinger v. Lumico Life Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stillinger-v-lumico-life-insurance-company-scd-2025.