Williams v Illinois Union Plaintiff motion to compel docs.pdf
Williams v Illinois Union Plaintiff motion to compel docs.pdf
Williams v Illinois Union Plaintiff motion to compel docs.pdf
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Case 3:10-cv-00518-TJC-JBT Document 12 Filed 10/28/10 Page 1 of 25<br />
UNITED STATES DISTRICT COURT<br />
FOR THE MIDDLE DISTRICT OF FLORIDA<br />
JACKSONVILLE DIVISION<br />
HERBERT WILLIAMS<br />
and FLORIDA HYDRO, INC.,<br />
CASE NO. 3:10-cv-518-J-32JBT<br />
vs.<br />
<strong>Plaintiff</strong>s,<br />
ILLINOIS UNION INSURANCE<br />
COMPANY,<br />
Defendant<br />
_________________________________/<br />
PLAINTIFFS’ MOTION TO COMPEL (1) PRODUCTION OF DOCUMENTS<br />
RESPONSIVE TO THEIR FIRST REQUEST FOR PRODUCTION AND (2) BETTER<br />
ANSWERS TO THEIR FIRST SET OF INTERROGATORIES<br />
<strong>Plaintiff</strong>s, Herbert <strong>Williams</strong> and Florida Hydro, Inc., by and through undersigned<br />
counsel, and pursuant <strong>to</strong> Federal Rule of Civil Procedure 37 and Middle District of Florida Local<br />
Rule 3.04(a), move this Court for the entry of an Order <strong>compel</strong>ling Defendant, <strong>Illinois</strong> <strong>Union</strong><br />
Insurance Company (“<strong>Illinois</strong> <strong>Union</strong>”), <strong>to</strong> produce documents responsive <strong>to</strong> their First Request<br />
for Production and <strong>to</strong> provide better answers <strong>to</strong> their First Set of Interroga<strong>to</strong>ries, as follows: 1<br />
I. INTRODUCTION AND BACKGROUND<br />
This is an action for damages for breach of contract arising out of the Defendant’s<br />
wrongful failure <strong>to</strong> defend and indemnify the <strong>Plaintiff</strong>s for loss arising from a third-party claim,<br />
covered under <strong>Illinois</strong> <strong>Union</strong> liability policy number BMI20036234 (the “Policy”).<br />
The<br />
1 Undersigned counsel certifies that <strong>Plaintiff</strong>s have attempted, without success, <strong>to</strong> resolve this discovery dispute with<br />
opposing counsel pursuant <strong>to</strong> Middle District of Florida Local Rule 3.01(g). See Letter from R. H. Lumpkin <strong>to</strong> R. S.<br />
Newman, of 9/30/10; Email from R. H. Lumpkin <strong>to</strong> R. S. Newman, of 10/6/10; Email from R. H. Lumpkin <strong>to</strong> R. S.<br />
Newman, of 10/11/10; and Email from R. H. Lumpkin <strong>to</strong> R. S. Newman, of 10/14/10 (attached as Composite<br />
Exhibit A).
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CASE NO. 3:10-cv-518-J-32JBT<br />
<strong>Plaintiff</strong>s filed suit against <strong>Illinois</strong> <strong>Union</strong> on June 17, 2010 [D.E. 1], and <strong>Illinois</strong> <strong>Union</strong> filed its<br />
answer and affirmative defenses on July 28, 2010 [D.E. 8].<br />
On August 5, 2010, the <strong>Plaintiff</strong>s propounded their First Request for Production and First<br />
Set of Interroga<strong>to</strong>ries on <strong>Illinois</strong> <strong>Union</strong> (attached as Composite Exhibit B).<br />
The Defendant<br />
requested and received a fifteen-day extension <strong>to</strong> respond.<br />
On September 20, 2010, <strong>Illinois</strong><br />
<strong>Union</strong> served its response (without an accompanying privilege log) and answers, both containing<br />
numerous objections, and produced less than fifty pages of documents that the <strong>Plaintiff</strong>s already<br />
had. (The Defendant’s response and answers are attached as Composite Exhibit C).<br />
In an effort <strong>to</strong> resolve the matters raised by <strong>Illinois</strong> <strong>Union</strong>’s objections without court<br />
intervention, the <strong>Plaintiff</strong>s sent a detailed letter <strong>to</strong> the carrier on September 30, 2010, outlining<br />
the deficiencies in the Defendant’s discovery responses. <strong>Illinois</strong> <strong>Union</strong>, however, has refused <strong>to</strong><br />
withdraw its unsubstantiated objections, file an amended response and answers, produce<br />
documents responsive <strong>to</strong> the <strong>Plaintiff</strong>s’ requests, and/or serve a privilege log.<br />
The <strong>Plaintiff</strong>s respectfully request that this Court enter an Order (a) overruling <strong>Illinois</strong><br />
<strong>Union</strong>’s objections <strong>to</strong> the <strong>Plaintiff</strong>s’ First Request for Production and First Set of Interroga<strong>to</strong>ries;<br />
(b) <strong>compel</strong>ling <strong>Illinois</strong> <strong>Union</strong> <strong>to</strong> immediately produce all documents responsive <strong>to</strong> Request Nos.<br />
2-6 and 8-12; and (c) <strong>compel</strong>ling <strong>Illinois</strong> <strong>Union</strong> <strong>to</strong> immediately provide better answers <strong>to</strong><br />
Interroga<strong>to</strong>ry Nos. 2-3 and 5-8.<br />
II.<br />
ARGUMENT<br />
Pursuant <strong>to</strong> Middle District of Florida Local Rule 3.04(a), the <strong>Plaintiff</strong>s’ requests and<br />
interroga<strong>to</strong>ries, and <strong>Illinois</strong> <strong>Union</strong>’s responses and answers are set forth verbatim below,<br />
followed by the reasons production and better answers must be <strong>compel</strong>led. We first address the<br />
carrier’s failure <strong>to</strong> produce a privilege log, as it alone justifies the relief requested by this <strong>motion</strong>.<br />
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A. <strong>Illinois</strong> <strong>Union</strong> Waived Any Privilege Objections It May Have Had By<br />
Electing Not To Provide A Privilege Log<br />
Florida federal courts recognize that where “a general objection of privilege is made<br />
without attaching a proper privilege log, the objection of privilege may be deemed waived.”<br />
Consumer Elec. Ass’n v. Compras and Buys Magazine, Inc., No. 08-21085-CIV, 2008 WL<br />
4327253, at *3 (S.D. Fla. Sept. 18, 2008); see Horowitch v. Diamond Aircraft Indus., Inc., No.<br />
6:06-CV-1703-Orl-19JGG, 2007 WL 1192401, at *2-4 (M.D. Fla. Apr. 23, 2007).<br />
The party<br />
resisting discovery bears the burden of demonstrating the applicability of the privilege or<br />
immunity and is required <strong>to</strong> produce a log or index of the withheld information detailing “the<br />
authors and their capacities, the recipients (including copy recipients) and their capacities, the<br />
subject matter of the document, the purpose for its production, and a detailed, specific<br />
explanation of why the document is privileged or immune from discovery.” Universal City Dev.<br />
Partners, Ltd. v. Ride & Show Eng’g, Inc. 230 F.R.D. 688, 695 (M.D. Fla. 2005).<br />
Without a<br />
privilege log, there is simply no information available <strong>to</strong> a requesting party (or a court) <strong>to</strong><br />
determine the nature of the allegedly protected documents being withheld.<br />
Federal courts have long recognized that a failure <strong>to</strong> substantiate privilege/immunity<br />
objections can (and should) result in a waiver of such objections. See, e.g., Pitts v. Francis, No.<br />
5:07cv169/RS/EMT, 2008 WL 2229524, at *4-5 (N.D. Fla. May 28, 2008) (holding that a party<br />
waived its privilege objections by failing <strong>to</strong> produce a privilege log); Capital Corp. Mergers &<br />
Acquisitions, Inc. v. Arias Co., Ltd., No. 6:04-CV-158-ORL-28JGG, 2006 WL 1208012, at *3<br />
(M.D. Fla. May 4, 2006) (a privilege log is due at the time of the written discovery response <strong>to</strong><br />
avoid waiver of the privilege); Eureka Fin. Corp. v. Hartford Acc. and Indem. Co., 136 F.R.D.<br />
179, 184 (E.D. Cal. 1991) (holding that when the “responding party states a general objection <strong>to</strong><br />
an entire discovery document on the basis of privilege, or generally asserts a privilege objection<br />
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within an individual discovery response, the resulting ‘blanket objection’ is decidedly improper”<br />
and can result in waiver of the claimed privileges); Peat, Marwick, Mitchell & Co. v. West, 748<br />
F.2d 540, 541-42 (10th Cir. 1984) (holding that a blanket, non-specific at<strong>to</strong>rney-client privilege<br />
or work product objection was insufficient and effected a waiver of the privilege).<br />
<strong>Illinois</strong> <strong>Union</strong>’s Response <strong>to</strong> the <strong>Plaintiff</strong>s’ First Request for Production was not<br />
accompanied by a privilege log, and the carrier has yet <strong>to</strong> provide one more than five weeks<br />
later.<br />
<strong>Illinois</strong> <strong>Union</strong> has accordingly waived its right <strong>to</strong> assert privileges and should be<br />
<strong>compel</strong>led <strong>to</strong> produce all withheld discovery.<br />
We now turn <strong>to</strong> the specific requests and<br />
interroga<strong>to</strong>ries at issue.<br />
B. <strong>Illinois</strong> <strong>Union</strong>’s Responses/Objections To Request Nos. 2-6 And 8-12 Are<br />
Legally Improper<br />
Request No. 2: Your entire claim and/or investigative file(s) pertaining <strong>to</strong> the<br />
Claims, whether local, field, regional or home office, including files held by any<br />
entity affiliated, contractually or otherwise, with You. This Request includes but<br />
is not limited <strong>to</strong> the claim file jacket(s), notes, daily diaries, statistical and coding<br />
information, letters, reports, pho<strong>to</strong>graphs with original negatives, invoices and<br />
billing, records of phone calls, emails, or other Documents.<br />
Response <strong>to</strong> Request No. 2: Objection. <strong>Plaintiff</strong>’s request is irrelevant,<br />
immaterial, overbroad, premature, violative of at<strong>to</strong>rney-client and/or work<br />
product privileges. <strong>Plaintiff</strong> is not entitled <strong>to</strong> request such materials until the<br />
merits of claim for benefits (i.e. – <strong>Plaintiff</strong>’s breach of contract claim) have been<br />
fully and finally adjudicated. See, for example, Allstate Insurance Company v.<br />
Shupack, 335 So. 2d 620 (Fla. 3d DCA 1976). See also, Allstate Indemnity<br />
Company v. Ruiz, 899 So. 2d 1121 (Fla. 2005); XL Specialty Insurance Company<br />
v. Aircraft Holdings, LLC, 929 So. 2d 578 (Fla. 1st DCA 2006); and Old<br />
Republic National Title Insurance Company v. Homeamerican Credit, Inc., 844<br />
So. 2d 818 (Fla. 5th DCA 2003).<br />
Reason(s) To Compel Production<br />
<strong>Illinois</strong> <strong>Union</strong>’s boilerplate objections are ineffective and should thus be overruled.<br />
A<br />
party has the burden of proving the basis for its objections and cannot shirk its discovery<br />
obligations through conclusory, boilerplate statements. See, e.g., AIG Centennial Ins. Co. v.<br />
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O’Neill, No. 09-cv-60551-WJZ, at 22 (S.D. Fla. Oct. 18, 2010) (discovery order) (refusing <strong>to</strong><br />
consider overbreadth and burdensomeness objections where the insurer provided no support for<br />
those assertions) (attached as Exhibit D); Oliver v. City of Orlando, No. 6:06-cv-1671-Orl-<br />
31DAB, 2007 WL 3232227, at *2 (M.D. Fla. Oct. 31, 2007) (an objection that a request is<br />
unduly burdensome, irrelevant, overbroad, or oppressive must be specifically described); Cutrale<br />
Citrus Juices USA, Inc. v. Zurich Am. Ins. Group, No. 5:03-cv-420-Oc-10GRJ, 2005 WL<br />
5177325, at *1 (M.D. Fla. June 8, 2005) (finding that a generalized and inadequate objection,<br />
“by itself, falls far short of satisfying Defendants’ burden of proof”); Viking Yacht Co. v.<br />
Affiliated FM Ins. Co., 07-80341-CIV-Marra/Johnson, at 3-5 (S.D. Fla. Feb. 7, 2008) (discovery<br />
order) (“<strong>to</strong> even merit consideration, an objection must show specifically how a discovery<br />
request is overly broad, burdensome or oppressive, by submitting evidence or offering evidence<br />
which reveals the nature of the burden”) (attached as Exhibit E).<br />
This District routinely holds that an insured is entitled <strong>to</strong> a carrier’s claim file in a<br />
coverage action.<br />
See, e.g., St. Joe Co. v. Liberty Mut. Ins. Co., No. 3:05-cv-1266-J-25MCR,<br />
2006 WL 3391208, at *2-3 (M.D. Fla. Nov. 22, 2006); Au<strong>to</strong> Owners Ins. Co. v. Totaltape, Inc.,<br />
135 F.R.D. 199, 201-04 (M.D. Fla. 1990); Cutrale Citrus Juices USA, Inc. v. Zurich Am. Ins.<br />
Group, No. 5:03-cv-420-Oc-10GRJ, 2004 WL 5215191, at *2 (M.D. Fla. Sept. 10, 2004). The<br />
state court citations provided by <strong>Illinois</strong> <strong>Union</strong> are of no consequence here: “Florida state court<br />
cases regarding the discoverability of claims files are not binding on federal courts.” St. Joe<br />
Co., 2006 WL 3391208, at *3 (emphasis added). “While several Florida courts have held that<br />
claims files are off limits until coverage has been proven, federal courts regularly permit<br />
discovery of an insurer’s claims file.” Id. (emphasis added).<br />
Information in the claims file “could reasonably lead <strong>to</strong> other matters that could bear on,<br />
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any issue that is or may be in the case,” and, thus, is relevant. Id.; see also Au<strong>to</strong>-Owners Ins. Co.<br />
v. Southeast Floating Docks, Inc., 231 F.R.D. 426, 430 (M.D. Fla. 2005) (relevance is “construed<br />
broadly <strong>to</strong> encompass any matter that bears on, or that reasonably could lead <strong>to</strong> other matter that<br />
bears on, any issue that is or may be in the case”). The party resisting discovery bears the burden<br />
<strong>to</strong> show that the requested information is not relevant. See Gober v. City of Leesburg, 197<br />
F.R.D. 519, 521 (M.D. Fla. 2000) (holding that the party trying <strong>to</strong> avoid discovery “must<br />
demonstrate <strong>to</strong> the court that the requested ... information either do[es] not come within the broad<br />
scope of relevance defined pursuant <strong>to</strong> Fed. R. Civ. P. 26(b)(1) or else [is] of such marginal<br />
relevance that the potential harm occasioned by discovery would outweigh the ordinary<br />
presumption in favor of broad disclosure”). The discovery provisions of the Federal Rules of<br />
Civil Procedure “require the disclosure of all relevant information” so that the parties may fully<br />
develop and crystallize concise factual issues for trial and so that “the ultimate resolution of<br />
disputed issues in any civil action may be based on a full and accurate understanding of the true<br />
facts.” U.S. v. Lowe, No. 3:08-cv-475-J-16MCR, 2008 WL 4500224, at *1 (M.D. Fla. Oct. 3,<br />
2008); see also Lerer v. Ferno-Wash., Inc., No. 06-CV-81031, 2007 WL 3256585, at *3 (S.D.<br />
Fla. Nov. 2, 2007) (citing Burns v. Thiokol Chem. Corp., 483 F.2d 300, 304 (5th Cir. 1973)). 2<br />
Relevance for purposes of discovery “is much broader than relevance for trial purposes . . . .<br />
Discovery should ordinarily be allowed . . . unless it is clear that the information sought has no<br />
possible bearing on the subject matter of the action.”<br />
Dunkin Donuts Inc. v. Mary’s Donuts,<br />
Inc., No. 01-0392-Civ-Gold, 2001 WL 34079319, at *2 (S.D. Fla. Nov. 1, 2001) (emphasis<br />
added). Put succinctly, the Federal Rules “permit fishing for evidence as they should.” Jeld-<br />
Wen, Inc. v. Nebula Glasslam Int’l, Inc., 248 F.R.D. 632, 639 (S.D. Fla. 2008) (emphasis added)<br />
2 Decisions rendered in the Fifth Circuit prior <strong>to</strong> close of business on September 30, 1981, are binding precedent. See<br />
Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc).<br />
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(quoting Fed. R. Civ. P. advisory committee’s notes); O’Neill, No. 09-cv-60551-WJZ, at 6<br />
(same). Thus, any documents within an insurer’s claims file that are not protected either by the<br />
at<strong>to</strong>rney-client privilege or the work product doctrine – unless waived, as is the case here – are<br />
discoverable. See St. Joe Co., 2006 WL 3391208, at *3.<br />
<strong>Illinois</strong> <strong>Union</strong> objects that this request seeks documents that are at<strong>to</strong>rney-client privileged<br />
and/or work product protected. The carrier, however, has failed <strong>to</strong> provide the <strong>Plaintiff</strong>s with a<br />
privilege log that would allow for an evaluation of those assertions. See supra pages 3-4.<br />
Further, there is no blanket protection of the claims file, as either at<strong>to</strong>rney-client or work product<br />
protected. See St. Joe Co., 2006 WL 3391208, at *3; see also 1550 Brickell Assoc. v. QBE Ins.<br />
Corp., No. 07-22283-CIV, 2008 WL 4279538, at *1 (S.D. Fla. July 8, 2008) (the claims file is<br />
not afforded a blanket privilege). “Instead, it is treated like any other collection of documents,<br />
which may contain both discoverable and undiscoverable components.” 1550 Brickell, 2008 WL<br />
4279538, at *1. Without a privilege log there is simply no information available <strong>to</strong> the <strong>Plaintiff</strong>s<br />
(or <strong>to</strong> this court) <strong>to</strong> determine the nature of the allegedly protected documents being withheld.<br />
The burden of establishing at<strong>to</strong>rney-client privilege rests on the party asserting the<br />
privilege. See Tyne v. Time Warner Entm’t Co., L.P., 212 F.R.D. 596, 598 (M.D. Fla. 2002).<br />
When that party is a corporation, its claims of privilege are subject <strong>to</strong> a heightened level of<br />
scrutiny “<strong>to</strong> minimize the threat of corporations cloaking information with the at<strong>to</strong>rney-client<br />
privilege in order <strong>to</strong> avoid discovery.” S. Bell Tel. & Tel. Co. v. Deason, 632 So. 2d 1377, 1383<br />
(Fla. 1994) (emphasis added).<br />
In Deason, the Supreme Court of Florida held that for a<br />
communication <strong>to</strong> fall within the at<strong>to</strong>rney-client privilege, it must satisfy five requirements: (1)<br />
the communications would not have been made but for the contemplation of legal services; (2)<br />
the employee making the communication did so at the direction of his or her corporate<br />
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supervisor; (3) the superior made the request of the employee as part of the corporation’s effort<br />
<strong>to</strong> secure legal advice or services; (4) the content of the communication relates <strong>to</strong> the legal<br />
services being rendered, and the subject matter of the communication is within the scope of the<br />
employee’s duties; and (5) the communication is not disseminated beyond those persons who<br />
because of the corporate structure, need <strong>to</strong> know its contents. Id.; see also St. Joe Co., 2006 WL<br />
3391208, at *4. <strong>Illinois</strong> <strong>Union</strong> has failed <strong>to</strong> sustain its burden.<br />
Florida law holds that the at<strong>to</strong>rney-client privilege does not extend <strong>to</strong> communications<br />
with at<strong>to</strong>rneys performing claims-handling or investiga<strong>to</strong>ry functions.<br />
This is because “in the<br />
insurance context, ‘no privilege attaches when an at<strong>to</strong>rney performs investigative work in the<br />
capacity of an insurance claims adjuster, rather than a lawyer . . . .” Cutrale Citrus Juices, 2004<br />
WL 5215191, at *3; see also Deason, 632 So. 2d at 1383-1384; St. Joe Co., 2006 WL 3391208,<br />
at *5 (“When an at<strong>to</strong>rney is not acting in the capacity of a legal advisor – for instance, when an<br />
at<strong>to</strong>rney is providing purely business advice – then the communications are not protected.”);<br />
1550 Brickell, 597 F. Supp. at 1337 (citing Bankers Ins. Co. v. Fla. Dep’t of Ins. & Treasurer,<br />
755 So. 2d 729 (Fla. 1st DCA 2000)) (at<strong>to</strong>rney client privilege did not apply <strong>to</strong> communications<br />
between an insurer and an at<strong>to</strong>rney retained “<strong>to</strong> assist [the insurer] in developing the<br />
investigation, securing Examinations Under Oath and . . . propounding documents requests and<br />
things of that nature . . .” because these were “activities of someone whom would be hired even<br />
if litigation were not remotely contemplated”); St. Joe Co. v. Liberty Mut. Ins. Co., No. 3:05-CV-<br />
1266-J-25MCR, 2007 WL 141282, at *3 (M.D. Fla. Jan. 16, 2007); W. Nat’l Bank of Denver v.<br />
Employers Ins. of Wassau, 109 F.R.D. 55, 57 (D. Colo. 1985) (holding the portions of the file of<br />
a law firm retained by an insurer reflecting the factual investigation of a claim by the at<strong>to</strong>rneys<br />
are not work product); Chicago Meat Processors, Inc. v. Mid-Century Ins. Co., No. 95 C 4277,<br />
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1996 WL 172148, at *3 (N.D. Ill. Apr. 10, 1996) (“[i]n the insurance context, <strong>to</strong> the extent that<br />
an at<strong>to</strong>rney acts as a claims adjuster, claims process supervisor, or claims investigation moni<strong>to</strong>r,<br />
and not as a legal advisor, the at<strong>to</strong>rney-client privilege does not apply”).<br />
“Just because a<br />
communication is between an at<strong>to</strong>rney and a client does not mean the privilege au<strong>to</strong>matically<br />
arises; the relevant question is whether an at<strong>to</strong>rney was retained <strong>to</strong> render legal services.” St. Joe,<br />
2006 WL 3391208, at *5; see also Bankers Ins. Co. v. Fla. Dep’t of Ins., 755 So. 2d 729 (Fla. 1st<br />
DCA 2000) (holding no privilege exists where the at<strong>to</strong>rney is “a conduit” for the insurer).<br />
The work product doctrine only shields discovery of documents or information “prepared<br />
in anticipation of litigation or for trial.” FED. R. CIV. P. 26(b)(3). “A party must anticipate<br />
litigation at the time the documents were drafted for [work product] protections <strong>to</strong> apply.<br />
Materials or documents drafted in the ordinary course of business are not protected.” Milinazzo<br />
v. State Farm Ins. Co., 247 F.R.D. 691, 698 (S.D. Fla. 2007); see also CSK Transp., Inc. v.<br />
Admiral Ins. Co., No. 93-132-CIV-J-10, 1995 WL 855421, at *2 (M.D. Fla. July 20, 1995).<br />
Therefore, a court needs “<strong>to</strong> determine when the document was created, and why it was created.”<br />
Milinazzo, 247 F.R.D. at 698. The fact that litigation did in fact occur, that a party has consulted<br />
or retained an at<strong>to</strong>rney, that a party has undertaken an investigation, or engaged in negotiations<br />
over the claim is insufficient <strong>to</strong> establish a reasonable anticipation of litigation . . . .” Harper v.<br />
Au<strong>to</strong>-Owners Ins. Co., 138 F.R.D. 655, 660 (S.D. Ind. 1991).<br />
As the party asserting the<br />
protection, <strong>Illinois</strong> <strong>Union</strong> has the burden of proving the applicability of the work product<br />
doctrine. See Grand Jury Proceedings v. U.S., 156 F.3d 1038 (10th Cir. 1998). To overcome<br />
the Harper presumptions, <strong>Illinois</strong> <strong>Union</strong> must demonstrate, by specific evidentiary proof of<br />
objective facts: (1) that it reasonably anticipated litigation when each document was generated or<br />
received; (2) that the document was prepared and used solely <strong>to</strong> prepare for that litigation; and<br />
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(3) that the document was not created <strong>to</strong> arrive at or buttress a tentative claims decision. See<br />
Harper, 138 F.R.D. at 664. <strong>Illinois</strong> <strong>Union</strong> has failed <strong>to</strong> sustain its burden as <strong>to</strong> this protection as<br />
well.<br />
Florida federal courts have determined that in the insurance context, “documents<br />
constituting any part of a factual inquiry in<strong>to</strong> or evaluation of a claim, undertaken in order <strong>to</strong><br />
arrive at a claim decision, are produced in the ordinary course of an insurer's business and,<br />
therefore, are not work product.”<br />
Cutrale Citrus Juices, 2004 WL 5215191, at *2 (citing<br />
Harper, 138 F.R.D. at 662); see also St. Joe Co., 2006 WL 3391208, at *7.<br />
Florida federal<br />
courts also hold that there is a rebuttable presumption that documents prepared before a final<br />
decision on an insured’s claim are prepared in the ordinary course of business and are not work<br />
product. See O’Neill, No. 09-cv-60551-WJZ, at 18-19; Royal Bahamian Ass’n, Inc. v. QBE Ins.<br />
Corp., No. 10-21511-CIV-MORENO/GOODMAN, 2010 WL 3452368, at *1 (S.D. Fla. Sept. 3,<br />
2010); Essex Builders Group, Inc. v. Amerisure Ins. Co., No. 6:04-CV-1838-Orl-22JGG, 2006<br />
WL 1733857, at *2 (M.D. Fla. June 20, 2006); Cutrale Citrus Juices, 2004 WL 5215191, at *2;<br />
1550 Brickell, 597 F. Supp. 2d at 1336; U.S. Fid. & Guar. Co. v. Liberty Surplus Ins. Corp., 630<br />
F. Supp. 2d 1332, 1337-38 (M.D. Fla. 2007); Milinazzo, 247 F.R.D. at 701.<br />
Documents created up until the date the <strong>Plaintiff</strong>s filed suit – June 17, 2010 – are<br />
accordingly not work product protected, as the carrier had not yet made its final decision on the<br />
<strong>Plaintiff</strong>s’ claims. In fact, the insurer continues <strong>to</strong> evaluate entitlement <strong>to</strong> defense costs. See,<br />
e.g., Email from N. Ron <strong>to</strong> J. Middle<strong>to</strong>n of 8/20/09; Letter from J. Adler <strong>to</strong> R. Hugh Lumpkin of<br />
4/28/10; Letter from J. Adler <strong>to</strong> R. Hugh Lumpkin of 6/24/10; Letter from J. Adler <strong>to</strong> J.<br />
Middle<strong>to</strong>n of 9/1/09 (attached as Composite Exhibit F).<br />
Also, the insurer’s official statement<br />
letter regarding coverage for the settlement, dated September 1, 2009, cannot be construed as a<br />
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“final decision” on the <strong>Plaintiff</strong>s’ claims for two reasons: First, the letter contains language that<br />
suggests that it was not meant <strong>to</strong> operate as a “final” denial of the claim for the settlement<br />
amount.<br />
Second, the insurer was still investigating and evaluating the <strong>Plaintiff</strong>s’ claim for<br />
defense costs at that point.<br />
The carrier even stated in its September 1, 2009, letter that “[a]fter you have reviewed the<br />
letter, if there is additional information that you would like me <strong>to</strong> consider, please forward same<br />
<strong>to</strong> me.” Letter from J. Adler <strong>to</strong> J. Middle<strong>to</strong>n of 9/1/09 (Composite Exhibit F). The <strong>Plaintiff</strong>s did<br />
exactly that and responded, providing additional information and explaining, among other things,<br />
why the settlement is covered under the Policy.<br />
Further, the fact that the <strong>Plaintiff</strong>s disagreed<br />
with <strong>Illinois</strong> <strong>Union</strong>’s preliminary coverage positions does not, without more, create a reasonable<br />
anticipation of litigation.<br />
See Harper, 138 F.R.D. at 659-60 (“Because litigation can be<br />
anticipated, in a general sense, at the time almost any incident occurs . . . ,” courts interpreting<br />
Rule 26(b)(3) “require a more substantial and specific threat of litigation before a party’s<br />
anticipation will be considered reasonable and justifiable motivating force.”).<br />
As is often the<br />
case, various discussions and negotiations between an insurer and its insureds take place before it<br />
becomes apparent that litigation is necessary <strong>to</strong> resolve a coverage dispute.<br />
Regarding the second reason, see, e.g., Email from N. Ron <strong>to</strong> J. Middle<strong>to</strong>n of 8/20/09<br />
(“[P]lease submit copies of all invoices incurred since [July 2, 2009]. Based upon . . . my review<br />
of the bills, we can further discuss an allocation for defense fees incurred since claim<br />
submission.”); Letter from J. Adler <strong>to</strong> R. Hugh Lumpkin of 4/28/10 (“[P]lease provide us with<br />
copies of defense fees and costs invoices related <strong>to</strong> this matter”); Letter from J. Adler <strong>to</strong> R. Hugh<br />
Lumpkin of 6/24/10 (“[I]n order <strong>to</strong> properly consider reimbursement for defense costs, please<br />
provide information explaining the services that were provided by each of the two law firms<br />
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defending this matter and why it was necessary <strong>to</strong> have two law firms.<br />
How did their roles<br />
differ? Please explain what services were provided in the defense of Herbert <strong>Williams</strong>. Again,<br />
please provide this information as soon as possible so that the carrier can make an appropriate<br />
determination for purposes of allocating defense costs.”) (Composite Exhibit F).<br />
Thus, because the Defendant continues <strong>to</strong> actively evaluate the <strong>Plaintiff</strong>s’ claims, <strong>Illinois</strong><br />
<strong>Union</strong> is only entitled <strong>to</strong> work product protection for documents created after June 17, 2010. See<br />
Royal Bahamian, 2010 WL 3452368, at *2-3.<br />
Request No. 3: All Documents Relating <strong>to</strong> the Claims and/or <strong>to</strong> the Policy<br />
and/or <strong>to</strong> the <strong>Plaintiff</strong>s in the possession, cus<strong>to</strong>dy and/or control of You or Insurer<br />
Counsel.<br />
Response <strong>to</strong> Request No. 3: Objection. <strong>Plaintiff</strong>’s request is neither clear,<br />
concise nor reasonably particularized. <strong>Plaintiff</strong>’s request is overly broad. See,<br />
Section III.A.1., Middle District Discovery (2001) at 10. Additionally, <strong>Plaintiff</strong>’s<br />
request is vague, irrelevant, immaterial, premature, violative of at<strong>to</strong>rney-client<br />
and/or work product privilege. <strong>Plaintiff</strong> seeks the same materials included within<br />
those requested in Request 2 above. And, for the same reasons, is not entitled <strong>to</strong><br />
same.<br />
Without waiving such objections, Defendant attaches as Composite Exhibit “B”<br />
(IU-000027 through IU-000076) correspondence in its possession regarding<br />
unprivileged or unprotected communications by and between the insured, its agent<br />
and counsel and the carrier.<br />
Reason(s) To Compel Production<br />
The <strong>Plaintiff</strong>s’ request is clear, concise, and reasonably particularized, as it seeks a<br />
certain, limited category of documents:<br />
documents that are related <strong>to</strong> the Claims, the Policy,<br />
and/or <strong>to</strong> the <strong>Plaintiff</strong>s, which are all terms defined in the <strong>Plaintiff</strong>s’ First Request for Production.<br />
Moreover, the Defendant’s response is wholly improper: “[I]t is common practice for a<br />
party <strong>to</strong> assert boilerplate objections and then state that . . . the party will respond <strong>to</strong> the<br />
discovery request, ‘subject <strong>to</strong> or without waiving the objection.’ Such an objection and answer<br />
preserves nothing and wastes the time and resources of the parties and the court. Further, this<br />
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practice leaves the requesting party uncertain as <strong>to</strong> whether the opposing party has fully<br />
answered its request.” Martin v. Zale Del., Inc., No. 8:08-CV-47-T-27EAJ, 2008 WL 5255555,<br />
at *2 (M.D. Fla. Dec. 15, 2008) (emphasis added).<br />
With respect <strong>to</strong> the remainder of <strong>Illinois</strong> <strong>Union</strong>’s response, see Reason(s) To Compel<br />
Production of Request No. 2.<br />
Request No. 4: All notes, logs, minutes, memoranda, emails, or other<br />
Documents reflecting any decisions, meetings, discussions or deliberations by or<br />
on behalf of You concerning the Claims and/or the Policy and/or <strong>to</strong> the <strong>Plaintiff</strong>s.<br />
Response <strong>to</strong> Request No. 4: Other than documents produced in response <strong>to</strong><br />
Request 3 above, Defendant adopts and incorporates by reference the same<br />
objections as set forth in its responses <strong>to</strong> Request for Production 2 and 3.<br />
Reason(s) To Compel Production<br />
See Reason(s) To Compel Production of Request Nos. 2 and 3.<br />
Request No. 5: All Documents Relating <strong>to</strong> Communications by and between<br />
You and the <strong>Plaintiff</strong>s Relating <strong>to</strong> the Policy and/or <strong>to</strong> the Claims.<br />
Response <strong>to</strong> Request No. 5: Other than documents produced in response <strong>to</strong><br />
Request 3 above, Defendant adopts and incorporates by reference the same<br />
objections as set forth in is responses <strong>to</strong> Request for Production 2 and 3.<br />
Reason(s) To Compel Production<br />
See Reason(s) To Compel Production of Request Nos. 2 and 3.<br />
Request No. 6: All Documents Relating <strong>to</strong> Communications by and between<br />
You and any other Person or entity, including, but not limited <strong>to</strong>, <strong>Plaintiff</strong>s’<br />
Defense Counsel, regarding the <strong>Plaintiff</strong>s and/or the Policy and/or the Claims.<br />
Response <strong>to</strong> Request No. 6: Defendant adopts and incorporates by reference its<br />
response <strong>to</strong> Request 3 above. More particularly, Defendant objects <strong>to</strong> the<br />
production of documents relating <strong>to</strong> “any other person or entity” because the only<br />
such documents in Defendant’s possession involve communications with counsel<br />
and/or documents that were created in connection with communications with<br />
counsel and, therefore, those documents are protected by the at<strong>to</strong>rney-client<br />
and/or work product privileges.<br />
Reason(s) To Compel Production<br />
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See Reason(s) To Compel Production of Request Nos. 2 and 3.<br />
Request No. 8: All Documents in Your possession, cus<strong>to</strong>dy, or control that You<br />
relied on in denying coverage in whole or in part for the Claims.<br />
Response <strong>to</strong> Request No. 8:<br />
Production 1, above.<br />
See, Defendant’s response <strong>to</strong> Request for<br />
Reason(s) To Compel Production<br />
<strong>Illinois</strong> <strong>Union</strong> refers only <strong>to</strong> the Policy in its Response <strong>to</strong> Request No. 1. The <strong>Plaintiff</strong>s<br />
asked in their September 30, 2010, letter <strong>to</strong> <strong>Illinois</strong> <strong>Union</strong> that the insurer confirm that it did not<br />
consider any Document, other than the Policy, in making its determination(s) as <strong>to</strong> the Claims.<br />
The carrier indicated in an email from R. S. Newman <strong>to</strong> R. H. Lumpkin, of 10/14/10 that its<br />
Response <strong>to</strong> Request No. 8 requires clarification.<br />
The <strong>Plaintiff</strong>s request that the carrier<br />
accordingly file an amended response <strong>to</strong> Request No. 8.<br />
Request No. 9: All communications between You and the Florida Department of<br />
Insurance, or any Florida government agency or official, at any time between<br />
1980 and 2006 Relating <strong>to</strong> the adoption, interpretation, approval for use, or<br />
application of the Employment Exclusion.<br />
Response <strong>to</strong> Request No. 9: Objection. Overbroad, harassing, irrelevant,<br />
immaterial, not appropriately limited in time or scope inasmuch as <strong>Plaintiff</strong>’s<br />
request spans 26 years and the policy form and endorsements at issue in this<br />
proceeding were not printed for circulation and use until June and July, 2005.<br />
Reason(s) To Compel Production<br />
Based on <strong>Illinois</strong> <strong>Union</strong>’s response that “the policy form and endorsements at issue in this<br />
proceeding were not printed for circulation and use until June and July, 2005,” the <strong>Plaintiff</strong>s<br />
agreed in their September 30, 2010, letter <strong>to</strong> limit Request No. 9 <strong>to</strong> the time period of 2005 <strong>to</strong> the<br />
present, and requested that the carrier confirm that that alteration fully addresses the insurer’s<br />
overbroad, harassing, immaterial and “not appropriately limited in time or scope” objections.<br />
<strong>Illinois</strong> <strong>Union</strong> did not respond.<br />
<strong>Illinois</strong> <strong>Union</strong>’s relevancy objection <strong>to</strong> this request is improper.<br />
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Compel Production of Request No. 2. Courts routinely require insurers <strong>to</strong> produce this type of<br />
documentation. See, e.g., Nat’l <strong>Union</strong> Fire Ins. Co. of Pittsburgh, Pa. v. F. Vicino Drywall II,<br />
Inc., et al., No. 10-60273-CIV-GOLD/MCALILEY (S.D. Fla. Oct. 22, 2010) (discovery order)<br />
(<strong>compel</strong>ling production of communications with state departments of insurance, insurance<br />
regula<strong>to</strong>rs, and insurance trade organizations) (attached as Exhibit G); Mach. Movers, Riggers &<br />
Mach. Erec<strong>to</strong>rs Local 136 Defined Contribution Pension Plan v. Fid. & Deposit Co. of Mary,<br />
No. 06 C 2439, 2007 WL 3120029, at *2-3 (N.D. Ill. Oct. 19, 2007) (communications with<br />
insurance industry associations).<br />
The information the <strong>Plaintiff</strong>s have requested plainly would help in resolving the disputed<br />
issues in this case, because it bears on how <strong>Illinois</strong> <strong>Union</strong> has interpreted the exclusion at issue in<br />
its past dealings with regula<strong>to</strong>rs and insurance industry associations. Such information includes<br />
<strong>Illinois</strong> <strong>Union</strong>’s relevant correspondence with state regula<strong>to</strong>rs and insurance industry<br />
associations showing how it marketed policies containing the exclusion and information about<br />
how <strong>Illinois</strong> <strong>Union</strong> has handled other claims raising similar coverage issues.<br />
These materials<br />
could be important <strong>to</strong> evaluating the merits of <strong>Illinois</strong> <strong>Union</strong>’s position in this case.<br />
Request No. 10: All Communications between You and any insurance trade<br />
association, including, but not limited <strong>to</strong>, the National Bureau of Casualty<br />
Underwriters, Mutual Insurance Rating Bureau, American Mutual Insurance<br />
Alliance, Insurance Services Office, Inc., American Insurance Association, the<br />
Insurance Information Institute, the Insurance Rating Board, the Insurance Rating<br />
Bureau, and any of their predecessors, between 1980 and 2006 Relating in whole<br />
or in part <strong>to</strong> the Employment Exclusion.<br />
Response <strong>to</strong> Request No. 10: Defendant adopts and incorporates by reference its<br />
objections <strong>to</strong> Request for Production 9, above.<br />
Reason(s) To Compel Production<br />
See Reason(s) To Compel Production of Request No. 9.<br />
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Request No. 11: All underwriting manuals or guidelines Relating in whole or in<br />
part <strong>to</strong> the Employment Exclusion in use between 2006 and the present, including<br />
any modifications there<strong>to</strong>.<br />
Response <strong>to</strong> Request No. 11: Objection. Defendant’s manuals, guidelines and<br />
other similar materials, if any, are not subject <strong>to</strong> discovery in a proceeding of this<br />
nature until the merits of <strong>Plaintiff</strong>’s claim for benefits have been fully and finally<br />
determined. See, Allstate Indemnity Company v. Ruiz, 899 So. 2d 1121 (Fla.<br />
2005) and Old Republic National Title Insurance Company v. Homeamerican<br />
Credit Inc., 844 So. 2d 818 (Fla 5th DCA 2003).<br />
Reason(s) To Compel Production<br />
Based on the Defendant’s Responses <strong>to</strong> Request Nos. 9 and 10 that “the policy form and<br />
endorsements at issue in this proceeding were not printed for circulation and use until June and<br />
July, 2005,” the <strong>Plaintiff</strong>s modified this request <strong>to</strong> the time period of 2005 <strong>to</strong> the present in their<br />
September 30, 2010, letter <strong>to</strong> <strong>Illinois</strong> <strong>Union</strong>.<br />
Request No. 11 seeks common interpretive materials, which are routinely ordered<br />
produced in coverage cases involving policy interpretation. See F. Vicino Drywall, No. 10-<br />
60273-CIV-GOLD/MCALILEY (<strong>compel</strong>ling production of underwriting manuals and<br />
guidelines, and other interpretive materials, including home or regional office directives and<br />
bulletins); O’Neill, No. 09-cv-60551-WJZ, at 15, 21-23 (granting <strong>motion</strong> <strong>to</strong> <strong>compel</strong> production<br />
of underwriting and other interpretive materials); Del Monte Fresh Produce v. Ace Am. Ins. Co.,<br />
No. 00-4792-CIV-Huck/Turnoff, at 4-5 (S.D. Fla. Sept. 3, 2002) (discovery order) (same)<br />
(attached as Exhibit H); Milinazzo, 24 F.R.D. at 703 (recognizing that where policy terms are<br />
potentially ambiguous, “underwriting related documents could be used <strong>to</strong> resolve that<br />
ambiguity”); Viking Yacht, No. 07-80341-CIV-MARRA/JOHNSON, at 4; Totaltape, 135 F.R.D.<br />
at 203 (insurer’s claims manual and policy interpretation guidelines are relevant <strong>to</strong> insured’s<br />
breach of contract claim; granting <strong>motion</strong> <strong>to</strong> <strong>compel</strong> production of insurer’s claim manuals and<br />
guidelines); Allstate Ins. Co. v. Levesque, No. 8:08-CV-2253-T-33EAJ, 2010 WL 376777, at *1-<br />
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2 (M.D. Fla. Jan. 26, 2010) (claims handling materials relating <strong>to</strong> plaintiff’s claim discoverable<br />
in breach of contract suit).<br />
Such materials would illuminate the meaning – and possible ambiguity – of the exclusion<br />
at issue, the “Employment Exclusion,” and may confirm the interpretation advanced by the<br />
<strong>Plaintiff</strong>s or at least that their interpretation is reasonable.<br />
Under Florida law, any such<br />
ambiguity in an insurance policy must be construed in favor of coverage. Documentary evidence<br />
showing <strong>Illinois</strong> <strong>Union</strong>’s own impression of how its Policy must be interpreted and applied<br />
would also provide insight for the Court’s determination as <strong>to</strong> whether <strong>Illinois</strong> <strong>Union</strong> breached its<br />
Policy here.<br />
Because the exclusion at issue is potentially susceptible <strong>to</strong> different interpretations, the<br />
<strong>Plaintiff</strong>s are entitled <strong>to</strong> explore whether the Defendant internally agrees with their interpretation.<br />
See Del Monte, No. 00-4792-CIV-Huck/Turnoff, at 4-5; Viking Yacht, No. 07-80341-CIV-<br />
MARRA/JOHNSON, at 4 (“drafting his<strong>to</strong>ry and extrinsic evidence of interpretative materials is<br />
discoverable at this early stage of litigation when questions concerning ambiguity have not been<br />
resolved”).<br />
<strong>Illinois</strong> <strong>Union</strong>’s internal construction of the exclusion upon which it is relying <strong>to</strong><br />
deny coverage and the terms of the Policy that may have been negotiated or modified are thus<br />
relevant and discoverable in this case.<br />
Federal courts in jurisdictions following Florida’s interpretive principles also routinely<br />
order production of documents bearing on the interpretation of insurance policy language. See,<br />
e.g., Chubb Cus<strong>to</strong>m Ins. Co, No. 2:07-CV-1285, 2009 WL 243034, at *8-9 (S.D. Ohio Jan. 30,<br />
2009) (underwriting materials relevant and discoverable); Taco, Inc. v. Fed. Ins. Co., No. 07-<br />
27S, 2007 WL 4269810, at *3 (D.R.I. Nov. 30, 2007) (finding insurer’s internal underwriting<br />
and claims manuals were relevant and discoverable since such materials were germane <strong>to</strong> the<br />
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interpretation of the policies and exclusions at issue); ALP Corp. v. Aetna Cas. & Sur. Co, 91<br />
F.R.D. 10, 14-15 (D. Md. 1980) (<strong>compel</strong>ling production of defendant’s claims manuals,<br />
interpretive and investigative materials concerning defendant’s interpretation of inven<strong>to</strong>ry<br />
exclusion in plaintiff’s policy and rejecting trade secret objection); Young v. Liberty Mut. Ins.<br />
Co., No. 3:96-CV-1189 (EBB), 1999 WL 301688, at *5 (D. Conn. Feb. 16, 1999) (“To facilitate<br />
a full understanding of the meaning of an insurance policy’s terms, many courts have allowed<br />
discovery of the drafting his<strong>to</strong>ry and interpretations of standard form CGL policy language,<br />
reinsurance information, and other insured’s claims.”); Arkwright Mut. Ins. Co. v. Nat’l <strong>Union</strong><br />
Fire Ins. Co., No. 90 CIV. 7811, 1993 WL 437767, at *1-2 (S.D.N.Y. Oct. 26, 1993) (drafting<br />
his<strong>to</strong>ry documents are discoverable); Champion Int’l Corp. v. Liberty Mut. Ins. Co., 129 F.R.D.<br />
63, 67 (S.D.N.Y. 1989) (finding that liability insurers’ drafting his<strong>to</strong>ry documents, claims<br />
manuals, and instructions <strong>to</strong> sales personnel on how <strong>to</strong> market and sell policies were<br />
discoverable as clearly germane <strong>to</strong> interpretation of policy at issue).<br />
As in Viking Yachts and Del Monte, federal courts recognize that interpretive materials<br />
are discoverable in insurance coverage disputes prior <strong>to</strong> any finding of ambiguity by the court<br />
and regardless of whether either party specifically claimed the policy language <strong>to</strong> be ambiguous.<br />
See Young, 1999 WL 301688, at *5 (“even if the Court were <strong>to</strong> ultimately conclude that the CGL<br />
policies at issue were unambiguous, this should not prevent the plaintiffs from discovering<br />
evidence which may present an ambiguity in the CGL policies at issue”); Arkwright, 1993 WL<br />
437767, at *1-2 (holding that, even where neither party had claimed the policy <strong>to</strong> be ambiguous,<br />
the parties’ contrasting interpretations of key provisions was sufficient <strong>to</strong> make drafting his<strong>to</strong>ry<br />
of policy relevant and discoverable); Nestle Food Corps. v. Aetna Cas. & Sur. Co., 135 F.R.D.<br />
101, 105-106 (D. N.J. 1990) (holding drafting his<strong>to</strong>ry and interpretations of policy language<br />
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relevant and discoverable though there had not yet been a finding of ambiguity).<br />
Request No. 12: All home or regional office bulletins or directives Relating <strong>to</strong><br />
the use, interpretation, pricing for and/or interpretation of the Employment<br />
Exclusion.<br />
Response <strong>to</strong> Request No. 12: Objection. Defendant’s bulletins, directives or<br />
other similar materials, if any, are not subject <strong>to</strong> discovery in a proceeding of this<br />
nature until the merits of <strong>Plaintiff</strong>’s claim for benefits have been fully and finally<br />
determined. See, Allstate Indemnity Company v. Ruiz, 899 So. 2d 1121 (Fla.<br />
2005) and Old Republic National Title Insurance Company v. Homeamerican<br />
Credit Inc., 844 So. 2d 818 (Fla 5th DCA 2003).<br />
Reason(s) To Compel Production<br />
See Reason(s) To Compel Production of Request No. 11.<br />
C. <strong>Illinois</strong> <strong>Union</strong>’s Answers/Objections To Interroga<strong>to</strong>ry Nos. 2-3 And 5-8 Are<br />
Legally Improper<br />
Interroga<strong>to</strong>ry No. 2: Identify every one of Your employees or Agents, former or<br />
current, who participated in the offer, negotiation, sale, assembly, underwriting,<br />
drafting or preparation of the Policy, and with respect <strong>to</strong> each such Person,<br />
describe the nature of his or her involvement, the Date(s) of that involvement,<br />
position held at the time of his or her involvement and presently, his or her full<br />
name, the name of the Person’s present employer, and his or her current business<br />
address. If the Person is no longer employed by You, and You do not know the<br />
Person’s current whereabouts, please provide the Person’s last known address,<br />
telephone number, and date of birth.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 2: <strong>Illinois</strong> <strong>Union</strong> objects <strong>to</strong> the instant<br />
interroga<strong>to</strong>ry on the grounds that it is irrelevant, immaterial, unduly burdensome,<br />
requires undue time, labor and expense for compliance and is beyond the scope of<br />
the issues framed by the <strong>Plaintiff</strong>’s Complaint, <strong>to</strong> wit: whether the Defendant<br />
breached a duty <strong>to</strong> defend and indemnify under the policy issued <strong>to</strong> the <strong>Plaintiff</strong>.<br />
(See Paragraph 31 of <strong>Plaintiff</strong>’s Complaint). <strong>Plaintiff</strong>’s Complaint raises no issue<br />
regarding the “offer, negotiation, sale, assembly, underwriting, drafting or<br />
preparation of the policy.” Accordingly, Defendant should not be required <strong>to</strong><br />
respond and/or <strong>Plaintiff</strong>’s Interroga<strong>to</strong>ry should be limited in scope <strong>to</strong> address the<br />
issues actually raised in the Complaint.<br />
Reason(s) To Compel Better Answer<br />
The discovery sought by this interroga<strong>to</strong>ry is not irrelevant or immaterial, and addresses<br />
matters that bear on the issues in this case – whether the carrier breached its duty <strong>to</strong> defend and<br />
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indemnify the <strong>Plaintiff</strong>s. Interroga<strong>to</strong>ry No. 2 seeks identification of persons whom the <strong>Plaintiff</strong>s<br />
can depose <strong>to</strong> clarify the type of coverage they purchased from <strong>Illinois</strong> <strong>Union</strong> and <strong>to</strong> provide<br />
additional insight in<strong>to</strong> the interpretation of the Policy’s provisions and exclusions.<br />
These<br />
individuals might also shed light on <strong>Illinois</strong> <strong>Union</strong>’s solicitation of the <strong>Plaintiff</strong>s <strong>to</strong> purchase the<br />
Policy and will inform as <strong>to</strong> what fac<strong>to</strong>rs were considered by <strong>Illinois</strong> <strong>Union</strong> in setting the<br />
Policy’s premium.<br />
This interroga<strong>to</strong>ry is not unduly burdensome; it is narrowly tailored and does not impose<br />
an excessive burden. As the party resisting discovery, <strong>Illinois</strong> <strong>Union</strong> is required <strong>to</strong> establish how<br />
the request imposes an undue burden. See Gober, 197 F.R.D. at 521. It has failed <strong>to</strong> do so. In<br />
Baine v. General Mo<strong>to</strong>rs Corp., 141 F.R.D. 328 (M.D. Ala. 1991) the court explained the<br />
con<strong>to</strong>urs of this objection:<br />
“The law applicable <strong>to</strong> an objection <strong>to</strong> production on grounds of<br />
burdensomeness [sic] and expense is fairly clear. The mere fact that producing documents would<br />
be burdensome and expensive and would interfere with the party’s normal operations is not<br />
inherently a reason <strong>to</strong> refuse an otherwise legitimate discovery request.” Id. at 330 (emphasis<br />
added).<br />
Simply put, <strong>Illinois</strong> <strong>Union</strong> has improperly objected merely because locating responsive<br />
persons might involve some effort and expense on its part. See Checkers Drive-In Rests., Inc. v.<br />
Titan Holdings, LLC, No. 6:06-cv-300-Orl-28KRS, 2007 WL 1877826, at *1 (M.D. Fla. June 28,<br />
2007) (dismissing “unduly burdensome” objection in absence of supporting evidence); St. Paul<br />
Reinsurance Co. v. Comm. Fin. Corp., 198 F.R.D. 508, 511-13 (N.D. Iowa 2000) (holding that<br />
“the mere statement by a party that the interroga<strong>to</strong>ry or request for production was overly broad,<br />
burdensome, oppressive and irrelevant is not adequate <strong>to</strong> voice a successful objection,” and that<br />
evidence or affidavits are required <strong>to</strong> support such objections); see also Kooima v. Zacklift<br />
Intern., Inc., 209 F.R.D. 444, 447 (D. S.D. 2002) (“boilerplate objections are unacceptable”).<br />
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This information is readily available within <strong>Illinois</strong> <strong>Union</strong>’s record keeping system and can be<br />
produced without the extraordinary effort implied by the carrier. <strong>Illinois</strong> <strong>Union</strong>, after all, chose<br />
the methods by which it creates, s<strong>to</strong>res, and maintains claim documents and information and<br />
cannot now be heard <strong>to</strong> complain of the expense associated with producing them.<br />
In its Rule 26 Disclosures, <strong>Illinois</strong> <strong>Union</strong> identified Daniel O’Connor and Veronica<br />
DeVoe as witnesses likely <strong>to</strong> possess knowledge relative <strong>to</strong> the application, brokering,<br />
placement, procurement and submissions related <strong>to</strong> the Policy. The <strong>Plaintiff</strong>s requested in their<br />
September 30, 2010, letter that the Defendant confirm that no other of <strong>Illinois</strong> <strong>Union</strong>’s<br />
Employees or Agents (as those terms are defined in the <strong>Plaintiff</strong>s’ First Set of Interroga<strong>to</strong>ries),<br />
former or current, participated in the offer, negotiation, sale, assembly, or preparation of the<br />
Policy. <strong>Illinois</strong> <strong>Union</strong> has not responded.<br />
Interroga<strong>to</strong>ry No. 3: Identify every one of Your employees or Agents, former or<br />
current, who was or is involved, directly or indirectly, in the investigation,<br />
handling, review, adjustment and/or analysis of the Claims, and with respect <strong>to</strong><br />
each such Person, please identify that person, describe the nature of his or her<br />
involvement, the Date(s) of that involvement, and position held at the time of his<br />
or her involvement and presently. If the Person is no longer employed by You,<br />
and You do not know the Person’s current whereabouts, please provide the<br />
Person’s last known address, telephone number, and date of birth.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 3: George T. Glavas, Esq., Natalia Ron, Esq.<br />
As described in Defendant’s Rule 26 Initial Disclosure, Mr. Glavas responded on<br />
behalf of the insurer <strong>to</strong> the initial notice received on or about 3/8/07. Ms. Ron<br />
responded on behalf of the carrier following the notification received from<br />
At<strong>to</strong>rney James Middle<strong>to</strong>n on 7/2/09.<br />
Reason(s) To Compel Better Answer<br />
The <strong>Plaintiff</strong>s requested in their September 30, 2010, letter that the Defendant confirm<br />
that no other of <strong>Illinois</strong> <strong>Union</strong>’s supervisors, direc<strong>to</strong>rs, managers, or administra<strong>to</strong>rs, former or<br />
current, were involved in the investigation, handling, review, adjustment and/or analysis of the<br />
Claims, as those terms are defined in the <strong>Plaintiff</strong>s’ First Set of Interroga<strong>to</strong>ries. <strong>Illinois</strong> <strong>Union</strong><br />
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has not responded.<br />
Interroga<strong>to</strong>ry No. 5: Please quote verbatim any provision of the Policy upon<br />
which you rely <strong>to</strong> limit or exclude coverage in this matter. With respect <strong>to</strong> each<br />
such provisions, identify who drafted that provision, and state the date when it<br />
was first used by You.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 5: Please refer <strong>to</strong> the at issue policy, Endorsement<br />
#2, Paragraphs 2a and 3. See, also, Section C “Exclusions,” Paragraphs f.i. and<br />
f.ii. <strong>Illinois</strong> <strong>Union</strong>s is unable <strong>to</strong> identify the person or persons who drafted the<br />
provisions referenced above and, likewise, is unable <strong>to</strong> provide the date these<br />
provisions were first used in an <strong>Illinois</strong> <strong>Union</strong> policy. <strong>Illinois</strong> <strong>Union</strong> can state,<br />
however, that the policy form and the endorsement were not available for<br />
inclusion in insurance policies, in general, until June and July, 2005, respectively.<br />
Reason(s) To Compel Better Answer<br />
<strong>Illinois</strong> <strong>Union</strong> states that it is “unable <strong>to</strong> identify the person or persons who drafted the<br />
provisions referenced above and, likewise, is unable <strong>to</strong> provide the date these provisions were<br />
first used in an <strong>Illinois</strong> <strong>Union</strong> policy.”<br />
<strong>Illinois</strong> <strong>Union</strong>, however, has a duty in this District <strong>to</strong><br />
ensure that a “reasonably inquiry” has been made, “including a review of documents likely <strong>to</strong><br />
have information necessary <strong>to</strong> respond <strong>to</strong> interroga<strong>to</strong>ries.” Middle District Discovery (2001) at<br />
16. The <strong>Plaintiff</strong>s requested in their September 30, 2010, letter that the Defendant identify and<br />
describe the efforts employed by <strong>Illinois</strong> <strong>Union</strong> <strong>to</strong> comply with this requirement. <strong>Illinois</strong> <strong>Union</strong><br />
has not responded.<br />
Interroga<strong>to</strong>ry No. 6: Identify every one of Your employees or Agents, former or<br />
current, who has been deposed or who has otherwise testified in the past five (5)<br />
years concerning the construction, interpretation, meaning or application of any<br />
Policy provisions that You intend <strong>to</strong> rely on <strong>to</strong> limit or avoid coverage in this<br />
litigation or that You intend <strong>to</strong> rely on in support of any of Your affirmative<br />
defenses.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 6: <strong>Illinois</strong> <strong>Union</strong> is not aware of the identities of<br />
former or current agents who may have testified in the past five (5) years<br />
regarding the subject mater described in this Interroga<strong>to</strong>ry. <strong>Illinois</strong> <strong>Union</strong> does<br />
not maintain records that would permit it <strong>to</strong> identify such employees or agents as<br />
described in the Interroga<strong>to</strong>ry. Despite the foregoing, as the construction,<br />
interpretation, meaning and application of the policy terms at issue herein are<br />
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questions of law for the Court and, therefore, the testimony of such individuals<br />
regarding their understanding of the construction, interpretation, meaning or<br />
application of the policy terms is irrelevant and immaterial <strong>to</strong> this proceeding.<br />
Reason(s) To Compel Better Answer<br />
See Reason(s) <strong>to</strong> Compel Better Answers <strong>to</strong> Interroga<strong>to</strong>ry Nos. 2 and 5; Reason(s) <strong>to</strong><br />
Compel Production of Request Nos. 11 and 12.<br />
Interroga<strong>to</strong>ry No. 7: Identify any appraiser, adjuster, accountant, consultant, or<br />
other professional retained, contacted, or used by You in connection with the<br />
Claims, and include the name of any entity that employed that Person at the<br />
relevant time. Also state whether that Person provided You with any reports,<br />
draft reports, pho<strong>to</strong>graphs, diagrams, sketches, estimates, videotapes, renderings,<br />
measurements or other information, Documents or calculations. If so, describe<br />
the nature of the information provided and provide the Dates on which these<br />
Documents were provided <strong>to</strong> You.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 7: Claims professionals used by <strong>Illinois</strong> <strong>Union</strong> in<br />
connection with the notice and the claim were George T. Glavas, Esq. and Natalia<br />
Ron, Esq.<br />
Reason(s) To Compel Better Answer<br />
<strong>Illinois</strong> <strong>Union</strong> has only partially responded <strong>to</strong> this interroga<strong>to</strong>ry. The <strong>Plaintiff</strong>s requested<br />
in their September 30, 2010, letter that the carrier identify whether George T. Glavas, Esq. and/or<br />
Natalia Ron, Esq. provided <strong>Illinois</strong> <strong>Union</strong> with any reports, draft reports, pho<strong>to</strong>graphs, diagrams,<br />
sketches, estimates, videotapes, renderings, measurements or other information, Documents or<br />
calculations (as those terms are defined in the <strong>Plaintiff</strong>s’ First Set of Interroga<strong>to</strong>ries). And if so,<br />
<strong>to</strong> describe the nature of the information provided and the Dates on which those Documents were<br />
provided. <strong>Illinois</strong> <strong>Union</strong> has chosen not <strong>to</strong> respond.<br />
Interroga<strong>to</strong>ry No. 8: Identify every third party with whom You communicated<br />
regarding the <strong>Plaintiff</strong>s and/or the Policy and/or the Claims, and describe the<br />
subject and substance of those Communications.<br />
Answer <strong>to</strong> Interroga<strong>to</strong>ry No. 8: Prior <strong>to</strong> the denial of coverage for the claim,<br />
<strong>Illinois</strong> <strong>Union</strong> had received and transmitted communications with the<br />
<strong>Plaintiff</strong>/insured, Herbert <strong>Williams</strong>, his insurance agent and at<strong>to</strong>rneys for the<br />
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<strong>Plaintiff</strong>/insured in the underlying litigation including, but not limited <strong>to</strong>, James<br />
Middle<strong>to</strong>n and Deb Kurcher. The subject matter of such communications,<br />
generally, included matters relating <strong>to</strong> the filing of the initial complaint, the<br />
second amended complaint, notification of the settlement, the insured’s obligation<br />
<strong>to</strong> defend and an allocation of defense expenses. Subsequent <strong>to</strong> the 8/20/09 denial<br />
of the claim for coverage, <strong>Illinois</strong> <strong>Union</strong> communicated with counsel, Joel Adler.<br />
The subject and substance of those communications is protected by the at<strong>to</strong>rneyclient<br />
and work product privileges. The nature of the communications <strong>to</strong>ok the<br />
form of e-mails, telephone conversations and correspondence, all of which were<br />
performed in anticipation of litigation relative <strong>to</strong> the denial of coverage for the<br />
underlying claim.<br />
Reason(s) To Compel Better Answer<br />
See Reason(s) <strong>to</strong> Compel Production of Request No. 2.<br />
III.<br />
CONCLUSION<br />
The <strong>Plaintiff</strong>s, Herbert <strong>Williams</strong> and Florida Hydro, Inc., respectfully request that this<br />
Court enter an Order (a) overruling the objections raised by Defendant, <strong>Illinois</strong> <strong>Union</strong> Insurance<br />
Company, with respect <strong>to</strong> the <strong>Plaintiff</strong>s’ First Request for Production and First Set of<br />
Interroga<strong>to</strong>ries; (b) <strong>compel</strong>ling <strong>Illinois</strong> <strong>Union</strong> <strong>to</strong> immediately produce all withheld discovery that<br />
is the subject of the <strong>Plaintiff</strong>s’ First Request for Production; (c) <strong>compel</strong>ling <strong>Illinois</strong> <strong>Union</strong> <strong>to</strong><br />
immediately provide better answers <strong>to</strong> the <strong>Plaintiff</strong>s’ First Set of Interroga<strong>to</strong>ries; and (d)<br />
awarding any further relief this Court deems equitable, just and proper.<br />
Respectfully submitted,<br />
VER PLOEG & LUMPKIN, P.A.<br />
100 S.E. Second Street, Thirtieth Floor<br />
Miami, FL 33131-2158<br />
(305) 577-3996 (305) 577-3558 facsimile<br />
By:<br />
/s/ R. Hugh Lumpkin, Esq.<br />
R. Hugh Lumpkin<br />
Florida Bar No. 308196<br />
hlumpkin@vpl-law.com<br />
Ashley B. Hacker<br />
Florida Bar No. 71924<br />
ahacker@vpl-law.com<br />
Counsel for <strong>Plaintiff</strong>s<br />
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CERTIFICATION OF GOOD FAITH EFFORT TO CONFER<br />
Pursuant <strong>to</strong> Local Rule 3.01(g), and as evidenced by the attached correspondence<br />
(Composite Exhibit A), undersigned counsel certifies that they have conferred with opposing<br />
counsel in a good faith effort <strong>to</strong> resolve the issues raised in this <strong>motion</strong>, but have been unable <strong>to</strong><br />
reach a resolution.<br />
CERTIFICATE OF SERVICE<br />
I HEREBY CERTIFY that a true and correct copy of the foregoing was electronically<br />
filed with the Clerk of Court on this 28 day of Oc<strong>to</strong>ber and served on all counsel of record via<br />
CM/ECF electronic filing.<br />
/s/ R. Hugh Lumpkin, Esq.<br />
R. Hugh Lumpkin, Esq.<br />
SERVICE LIST<br />
Joel Adler, Esq.<br />
Robert Scott Newman, Esq.<br />
MARLOW, CONNELL, ABRAMS, ADLER, NEWMAN & LEWIS<br />
4000 Ponce De Leon Boulevard, Suite 570<br />
Coral Gables, Florida 33146<br />
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