Uniroyal, Inc. v. St. Paul Fire & Marine Insurance Co.

540 So. 2d 1357, 1989 Ala. LEXIS 72
CourtSupreme Court of Alabama
DecidedFebruary 17, 1989
Docket87-1086
StatusPublished
Cited by2 cases

This text of 540 So. 2d 1357 (Uniroyal, Inc. v. St. Paul Fire & Marine Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uniroyal, Inc. v. St. Paul Fire & Marine Insurance Co., 540 So. 2d 1357, 1989 Ala. LEXIS 72 (Ala. 1989).

Opinion

MADDOX, Justice.

This petition for a writ of mandamus presents the question of whether an “opinion letter” written by an attorney to an insurance company is discoverable by the insured in a declaratory judgment action involving an issue of coverage.

By its petition, Great American Surplus Lines Insurance Company (hereinafter referred to as “Great American”) asks this Court to order Circuit Judge Josh Mullins to vacate his order compelling Great American to produce a “coverage opinion letter” of Great American’s legal counsel.

For an understanding of the question involved in this petition, the facts may be briefly stated. This case arises out of a dispute between an insured and the insurer [1358]*1358regarding coverage for claims brought in connection with certain landowners’ suits involving water and soil contamination.

The lawsuits were filed against respondents and claimed damages for bodily injuries and property damage allegedly resulting from the presence of chemical contaminants alleged to have come from groundwater beneath respondents’ manufacturing facility. After the lawsuits were filed, respondents demanded coverage pursuant to a policy issued to them by Great American. Great American denied coverage, basing its denial on exclusions contained in the policy.

After respondents questioned Great American’s denial of coverage, Great American responded by notifying respondents that it would submit the matter to legal counsel for a review. In subsequent correspondence with respondents, Great American informed respondents that legal counsel had agreed with Great American’s denial, and that Great American was standing by its original denial of coverage.

Respondents subsequently filed a complaint seeking a judgment declaring their rights under the policy. During the discovery phase of the ensuing litigation, respondents demanded the production of, inter alia, the “opinion letter” written by Great American’s legal counsel relating to the denial of coverage. Great American objected to the request for production, but Judge Mullins entered, an order compelling Great American to produce it.

The question before us is whether the “opinion letter” was discoverable.

Petitioner argues that the “opinion letter” falls within the purview of the attorney-client privilege and/or the “work product doctrine” and is, thus, not discoverable.

Respondents contend that the “opinion letter” is not protected under the work product doctrine because it was not solicited during, or in anticipation of, the lawsuit. Respondents further contend that any attorney-client privilege that might have been asserted Was waived when Great American informed respondents that it had submitted the policy in dispute to legal counsel for an opinion. We disagree with the first contention and find the second contention inappropriate.

The attorney-client privilege, of course, is quite distinct from the work product doctrine. We will examine both.

The purpose of the privilege is to encourage candid “communication between attorneys and their clients and thereby promote broader public interest in the observance of law and administration of justice.” Upjohn Co. v. United States, 449 U.S. 383, 389, 101 S.Ct. 677, 682, 66 L.Ed.2d 584 (1981). See United States v. El Paso Co., 682 F.2d 530 (5th Cir.1982) cert denied, 466 U.S. 944, 104 S.Ct. 1927, 80 L.Ed.2d 473; “Developments in the Law — Privileged Communications,” 98 Harv.L.Rev. 1450 (1985).

The advantage of the privilege ordinarily inured to the attorney and protected both his honor and the oath of his office. By the late eighteenth century, however, the emphasis shifted to the protection of the client. The privilege is now viewed as the exclusive prerogative of the client. VIII Evidence, 3. Wigmore, § 2321 (J. McNaughton rev. 1961); L. Zell, “Scope and Application of the Attorney-Client Privilege — An Overview,” 47 Ala.Lawyer 100 (1986); Connolly v. State, 500 So.2d 57 (Ala.Crim.App.1985), affirmed, 500 So.2d 68 (Ala.1986); “The Attorney-Client Privilege as Applied to Corporations,” 65 Yale L.J. 953 (1956).

With respect to the facts before us, we find that the “opinion letter” represents a communication from the attorney to the client, and that it is, therefore, a privileged communication. Any further discussion of this issue is unnecessary.

The general rule is that an attorney cannot disclose the advice he gave to his client about matters concerning which he was consulted professionally, nor can the client be required to divulge the advice that his attorney gave him. Sawyer v. Stanley, 241 Ala. 39, 1 So.2d 21 (1941). Of course, the privilege can be waived. That is what respondents say happened here. They argue that “the evidence before the court dictated that the court find that the re[1359]*1359quested materials were not protected by the attorney-client privilege for two reasons.” First, they say, “any privilege which might attach to the material had been waived” and, second, they argue that “because the attorneys’ opinion was intended to be disclosed to Uniroyal, no privilege ever attached to the opinion.”

While we recognize that the attorney-client privilege “may he waived, either directly or constructively, by the client,” Swain v. Terry, 454 So.2d 948, 954 (Ala.1984), and that this can he done by disclosing part of the communication, Louisville & Nashville R.R. v. Hill, 115 Ala. 334, 22 So. 63 (1897), we are of the opinion that no such waiver occurred in this case.

Respondents- earnestly insist that this Court’s case of Louisville & Nashville R.R. v. Hill, supra, is controlling; specifically, they argue that when the petitioner relayed to the respondents the fact that its attorney had advised it that there was no coverage, this action was a partial disclosure of the confidential communication, and, therefore, amounted to a waiver of the privilege. Because of the insistence by counsel that Louisville & Nashville R.R. v. Hill is controlling, we quote from that opinion:

“... Assignments from 15 to 23, inclusive, and 35 and 36 relate to the same matter and may be considered together. The witness, Hagan, under whose orders the trees were cut, was asked, while being examined by defendant, who introduced him, ‘Did you not consult a lawyer with reference to moving people back fifty feet?’ He answered, ‘He did consult Capt. McClellan, railroad attorney.’ On the cross-examination, the witness was asked when this was, the extent of the order, and what passed between him and the attorney. The evident object of the question as asked by defendant, was to show that the witness was acting in what he did on legal advice, and to get the benefit of his answer as made, that in committing the trespass he was not guilty of any willful disregard of plaintiffs’ rights. The answer tended to show this. The questions propounded to him on the cross, which were objected to and allowed, were intended, and had a tendency to that end, to rebut the effect of the answer to the question in chief.

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Related

Ex Parte Great Am. Surplus Lines Ins. Co.
540 So. 2d 1357 (Supreme Court of Alabama, 1989)

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Bluebook (online)
540 So. 2d 1357, 1989 Ala. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uniroyal-inc-v-st-paul-fire-marine-insurance-co-ala-1989.