ATLANTIC COAST LIFE INSURANCE COMPANY v. A.M. BEST RATING SERVICES, INC., 3:24-cv-05470

Plaintiffs Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company served a Rule 30(b)(6) deposition notice on Defendant A.M. Best Rating Services, Inc. ("AM Best") focused on various topics, specifically including AM Best's income from rating services for the past three years.
The deposition is related to a pending Motion for Preliminary Injunction, which is scheduled for hearing on June 28, 2024.
Plaintiffs seek to challenge AM Best’s assertion that its ratings are protected under the First Amendment by probing whether those ratings qualify as "commercial speech."
AM Best opposes the request, arguing that its earning income from the ratings does not make the speech commercial and offered to stipulate that it earns income from ratings.
The discovery dispute centers on whether this financial information is relevant and proportional to the needs of the preliminary injunction proceeding.
The Court reviewed the submissions and ruled on the expedited discovery issue without oral argument.

Issue	Plaintiff’s Argument	Defendant’s Argument	Held
Relevance of AM Best's financial data for 30(b)(6) deposition	Needed to establish ratings are commercial speech and not fully protected by First Amendment	Earning income doesn’t make speech commercial; offered to stipulate income	Plaintiffs may compel AM Best to testify on the topic

Facenda v. N.F.L. Films, Inc., 542 F.3d 1007 (3d Cir. 2008) (defining factors for "commercial speech" including economic motivation)
Bayer AG v. Betachem, Inc., 173 F.3d 188 (3d Cir. 1999) (court holds broad discretion to manage discovery)
U.S. Healthcare, Inc. v. Blue Cross of Greater Phila., 898 F.2d 914 (3d Cir. 1990) (economic motivation is a key factor in analyzing commercial speech)