Swinerton Builders v. Lexington Insurance Company

District Court, W.D. Washington·Decided May 26, 2022·No. 2:21-cv-00259·Unknown

Opinion

1 2 3 WESTERN DISTRICT OF WASHINGTON 6 SWINERTON BUILDERS, Case No. 2:21-cv-259-RAJ-TLF 7 Plaintiff, v. ORDER 8 LEXINGTON INSURANCE COMPANY, 9 Defendant. 10 11 This matter comes before the Court on the parties’ supplemental briefing (Dkt 57, 12 Dkt. 59) concerning plaintiff’s request for in camera review pursuant to the Court’s 13 protective order (Dkt 30) and plaintiff’s motion to apply Washington law to attorney-client 14 privilege issues in this action (Dkt. 92). 16 The trial court should not automatically grant a request for inspection of 17 documents in camera simply because a party makes a request. United States v. Zolin, 18 491 U.S. 554, 571 (1989); Commentary on Protection of Privileged ESI, Sedona 19 Conference Journal, Vol. 17 at 138-139 (2016). In camera review of information that has 20 been withheld from discovery on the basis of a legal privilege or protection is required 21 only if the party who challenges the privilege designation provides the Court with a 22 “factual basis sufficient to support a reasonable, good faith belief that in camera 23 inspection may reveal evidence that information in the materials is not privileged.” In re 24 1 Grand Jury Investigation, 974 F.2d 1068, 1075 (9th Cir. 1992); Rock River Comm’ns, 2 Inc. v. Universal Music Group, Inc., 745 F.3d 343, 353 (9th Cir. 2014) (The trial court’s 3 decision to deny in camera review is not an abuse of discretion when the party 4 challenging the privilege designation identifies little more than an unfounded suspicion 5 as the basis for their request for in camera inspection).

6 The question of whether the party challenging the designation has provided a 7 sufficient factual showing to require the Court to conduct in camera review is not a 8 stringent threshold – it is meant only “to prevent ‘groundless fishing expeditions’”. United 9 States v. Christensen, 828 F.3d 763, 800-805 (9th Cir. 2016), quoting, In re Grand Jury 10 Investigation, 974 F.2d at 1073. By submitting documents to the Court for in camera 11 review, a party does not waive or otherwise affect the privilege. See, United States v. 12 Zolin, 491 U.S. 554, 568 (1989) (disclosure of documents to the district court for the 13 purpose of determining the merits of a claim of privilege does not terminate the 14 privilege).

15 In this case, plaintiff contends all of the attorney-client communications and 16 counsel’s work product information concerning the insurance claims files for the 17 concrete slab and bus duct claims should be discoverable under Cedell v. Farmers Ins. 18 Co., 176 Wn.2d 686, 697 (2013). Dkt. 92, Plaintiff’s Motion Regarding Choice of Law on 19 Attorney-Client Privilege, at 1, 3-4. And plaintiff contends the defendant cannot rebut the 20 Cedell presumption of discoverability, because the defendant cannot show that their 21 attorney(s) was not participating in any quasi-fiduciary claim handling tasks. Dkt. 57, 22 Plaintiff’s Supplemental Briefing Regarding Privilege Issues, at 8-10. Plaintiff also 23 asserts that the civil fraud exception applies. Dkt. 57 at 11. 24 1 The defendant counters these arguments by pointing out that Lexington’s 2 coverage counsel, CWP, was not retained or requested to perform adjustment activities 3 for any of the claims at issue in this case. Dkt. 59, Lexington’s Brief Regarding 4 Discovery of Privileged Documents, at 3; Dkt. 61, Declaration of Stacy Stracener, at 4. 5 They also assert that Washington State law should not be applied to the issue of

6 attorney-client privilege, because the locations where CWP attorneys were working for 7 the defendant, and the individuals receiving attorney-client advice on behalf of 8 defendant (from Lexington, Crawford, or EFI) were in Texas, California, Mississippi, 9 Illinois, or New York -- outside of Washington State. Dkt. 95, Lexington’s Response to 10 Plaintiff’s Motion Regarding Choice of Law on Attorney Client Privilege, at 2, 4-6. 11 In addition, defendant points out that the timeline of the claim investigation shows 12 that before Lexington retained CWP, the investigation and denial of Swinerton’s claims 13 had been assessed. Dkt 59, Defendant’s Brief Regarding Discovery of Privileged 14 Documents, at 3. The defendant also argues that plaintiff fails to identify any factual

15 foundation for allegations of fraud, and fails to identify specific objections to the privilege 16 log entries. Id. 17 Under the Erie Doctrine, a federal court considering a diversity jurisdiction case 18 will apply federal procedural law, and state substantive law. Erie R.R. v. Tompkins, 304 19 U.S. 64, 78 (1938); Freund v. Nycomed Amersham, 347 F.3d 752, 761 (9th Cir. 2003). 20 Under Fed. R. Evid. 501, “state law governs privilege regarding a claim or defense for 21 which state law supplies the rule of decision.” The District Court applies the forum 22 state’s choice-of-law rules to resolve which state’s privilege law controls if there are 23 factual connections to more than one state. Atl. Marine Const. Co. v. U.S. Dist. Court for 24 1 W. Dist. Of Texas, 571 U.S. 49, 65 (2013); Patton v. Cox, 276 F.3d 493, 495 (9th Cir. 2 2002). The federal court utilizes federal civil procedure law to decide whether in camera 3 review is necessary. Ingenco Holdings LLC v. Ace American Ins. Co., No. C13-543 4 RAJ, 2014 WL 6908512 (W.D. Wash. Dec. 8, 2014) at *8. 5 Under Washington law, the threshold question is whether there is an actual

6 conflict with another state’s law. Burnside v. Simpson Paper Co., 123 Wn.2d 93, 103 7 (1994). “An actual conflict of law exists where the result of an issue is different under the 8 laws of the interested states.” Woodward v. Taylor, 184 Wn.2d 911, 917 (2016). If such 9 a conflict exists, the Court would then consider Section 139 of the Restatement 10 (Second) of Conflict of Laws to resolve it. State v. Donahue, 105 Wn. App. 67 (2001). 11 With respect to work product doctrine, Federal Rule of Civil Procedure 26(b)(3) 12 governs assertions of work product protection in federal court. United Coal Cos. v. 13 Powell Constr. Co., 839 F.2d 958, 966 (3rd Cir. 1988); see, Admiral Ins. Co. v. United 14 States Dist. Ct. for Dist. Of Ariz., 881 F.2d 1486, 1494 (9th Cir. 1989); MKB

15 Constructors v. Am. Zurich Ins. Co., No. C13-611 JLR, 2014 WL 2526901 (W.D. Wash. 16 May 27, 2014) at *18-*23. Work product is a qualified immunity protecting a party from 17 discovery of documents and tangible items prepared by a party, or the party’s 18 representative, in anticipation of litigation. Hickman v. Taylor, 329 U.S. 495, 510-511 19 (1947); FRCP 26(b)(3). It protects “certain materials prepared by an attorney ‘acting for 20 [their] client in anticipation of litigation.’” United States v. Nobles, 422 U.S. 225, 237-238 21 (1975) (quoting Hickman v.

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

Swinerton Builders v. Lexington Insurance Company, (W.D. Wash. 2022).

Swinerton Builders v. Lexington Insurance Company (Swinerton Builders v. Lexington Insurance Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hickman v. Taylor
329 U.S. 495 (Supreme Court, 1947)
United States v. Nobles
422 U.S. 225 (Supreme Court, 1975)
United States v. Zolin
491 U.S. 554 (Supreme Court, 1989)
United States v. Richey
632 F.3d 559 (Ninth Circuit, 2011)
Burnside v. Simpson Paper Co.
864 P.2d 937 (Washington Supreme Court, 1994)
In Re General Agents Insurance Co. of America
224 S.W.3d 806 (Court of Appeals of Texas, 2007)
Jackson Medical Clinic for Women v. Moore
836 So. 2d 767 (Mississippi Supreme Court, 2003)
Harlandale Independent School District v. Cornyn
25 S.W.3d 328 (Court of Appeals of Texas, 2000)
Escalante v. Sentry Insurance
743 P.2d 832 (Court of Appeals of Washington, 1987)
United States v. Terry Christensen
828 F.3d 763 (Ninth Circuit, 2016)
Cedell v. Farmers Insurance
295 P.3d 239 (Washington Supreme Court, 2013)
Woodward v. Taylor
366 P.3d 432 (Washington Supreme Court, 2016)
State v. Donahue
105 Wash. App. 67 (Court of Appeals of Washington, 2001)
Fresenius Med. Care Holdings, Inc. v. Hood
269 So. 3d 36 (Mississippi Supreme Court, 2018)