DeMarco v. Allstate Ins. Co.
2014 Ohio 933
Ohio Ct. App.2014Background
- DeMarco, insured by Allstate, was involved in an accident with Chavez (uninsured) and Schmidt (uninsured) in Dec 2010.
- DeMarco sued Allstate in Aug 2012 for uninsured/underinsured motorist coverage and related rights to subrogation/reimbursement.
- DeMarco claimed Allstate refused to fully compensate, breach of policy terms, and breach of the implied covenant of good faith.
- Allstate moved to bifurcate and stay discovery and to enter a protective order restricting deposition discovery.
- Trial court denied bifurcation; partially granted and denied parts of the protective order, allowing discovery into Allstate’s investigation and claim handling.
- Court held privilege issues (attorney-client and work product) could not bar the pre-suit discovery at issue, and upheld the denial of the protective order on those items.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a bad-faith claim was asserted. | DeMarco alleged lack of good faith in processing her claim. | Allstate contends no bad-faith claim was pleaded. | DeMarco alleged bad faith; court treated as issue governed by privilege analysis. |
| Whether attorney-client/work-product protections barred discovery. | Discovery sought non-privileged content related to coverage and defense. | Discovery sought privileged materials under attorney-client/work-product rules. | Work-product and attorney-client privileges did not bar the pre-suit discovery at issue. |
| What standard governs review of privilege in discovery disputes. | Standard should be de novo for privilege issues. | Standard should be abuse of discretion. | Privilege issues reviewed de novo; other discovery issues generally abuse of discretion. |
Key Cases Cited
- Boone v. Vanliner Ins. Co., 91 Ohio St.3d 209 (2001) (insurer’s pre-denial claims file may be discoverable in bad-faith case)
- Med. Mut. of Ohio v. Schlotterer, 122 Ohio St.3d 181 (2009) (privilege issues reviewed de novo)
- Covington v. The MetroHealth Sys., 150 Ohio App.3d 558 (2002) (burden to show privilege rests with proponent; Civ.R. 26 protections)
- Slater v. Motorists Mut. Ins. Co., 174 Ohio St. 148 (1962) (lack of good faith equates to bad faith)
- Hoskins v. Aetna Life Ins. Co., 6 Ohio St.3d 272 (1983) (bad faith as lack of good faith in processing a claim)