In a discovery dispute between two insurers, the Eastern District ruled that a party seeking additional insured coverage may, in fact, seek disclosure of claim notes if the notes “likely” include discussion as to why coverage was denied, why the contract does not provide for coverage and why the accident did not arise out of the named insured’s work.
Apparently, even in the absence of a bad faith claim, discovery on a party’s intent and reasoning for a denial are indeed discoverable. Because similar debates are equally prevalent in additional insured disputes by and between insurers, practitioners and parties, litigants should be keenly aware of the challenges available when seeking claims note disclosures as well as the ramifications of failing to disclose non-privileged sources. Click to see the Court’s Decision
