Claims FIles and Attorney-Client Communications Deemed Discoverabe in Extra-contracutal Claim
In a claim by injured worker against worker’s compensation claims administrator alleging tort of outrage, Alabama Supreme Court holds that claims adjuster’s files were not privileged work-product, and that communications between administrator an its counsel were also subject to disclosure. At issue in Ex Parte Meadowbrook Ins. Group, Inc. (Ala. Dec. 21, 2007) was claimant’s right to “(1) [the] adjuster's claims notes made after [claimant’s] worker's compensation case was filed … up to the filing of this case, and (2) correspondence and e-mails exchanged between [claims administrator] and [counsel hired to defend it] within that time period pertaining to the decision to terminate [claimant’s] worker's compensation benefits.” Court concluded that claims administrator failed to offer evidence indicating contents of claims file were prepared in anticipation of litigation or trial. Court reasoned that since administrator had an independent contractual duty to investigate claim, it could not rely on mere blanket objections, but was required to show when documents were created, why each document was prepared and how it was used. As for communications with counsel, though they were subject to attorney-client privilege, the privilege was deemed waived because administrator was relying on advice of counsel as a defense to the tort claim. Court held that where advice of counsel is asserted in defense to culpability for a decision, plaintiff is entitled to all relevant documents bearing on the decision.
