Transamerica Life Insurance v. Moore
274 F.R.D. 602
E.D. Ky.2011Background
- Transamerica filed a declaratory judgment in 2010 regarding payment of claims under a cancer policy purchased by the Moores.
- The Moore counterclaim asserted bad faith, fraud, civil conspiracy, and related claims arising from Transamerica’s 2006 benefit reductions.
- Dispute centers on the meaning of 'actual charges' and related billing and payment practices.
- A May 2011 telephonic conference prompted Defendants’ motion to compel six categories of documents.
- Plaintiff opposed as invading privilege, burdensome, or irrelevant; the court granted in part and denied in part.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Attorney-client privilege over Jorden Burt Report and Gwin Charts | Reports are privileged communications between client and counsel. | Report/Charts are not privileged and may be discoverable. | Privilege applies; materials are not discoverable. |
| Waiver or crime-fraud exception to privilege for Jorden Burt Report | No waiver; no crime-fraud basis shown. | Exception should apply to compel disclosure. | No waiver or crime-fraud exception; remain privileged. |
| Discovery of Wakely Report (cancer claim cost study) | Irrelevant, proprietary, non-discoverable. | Might be relevant to pricing and claims cost context. | Denied; not relevant to the asserted claims or defenses. |
| Deposition transcripts from similar actions | Unduly burdensome to produce. | Transcripts in similar actions are relevant or could lead to relevant info. | Partially granted; production of transcripts required but exclude confidential personnel records. |
| Actuarial memoranda from time of policy sale | Irrelevant and burdensome to locate documents dating to 1994. | May bear on pricing and actuarial basis for the policy. | Granted; relevant and not unduly burdensome. |
| Documents reflecting decision to stop selling the policy | Unduly burdensome and overly broad. | Necessary for understanding cessation decision. | Denied; burden outweighs likely benefit. |
Key Cases Cited
- Upjohn Co. v. United States, 449 U.S. 383 (1981) (attorney-client privilege protects confidential communications for legal advice)
- St. Luke Hospitals, Inc. v. Kopowski, 160 S.W.3d 771 (Ky. 2005) (confidential communications essential to legal services are privileged)
- In re Lott, 424 F.3d 446 (6th Cir. 2005) (implied waiver not triggered by mere potential relevance)
- United States v. Zolin, 491 U.S. 554 (1989) (crime-fraud exception requires reasonable belief of fraud; review standard)
- New Phoenix Sunrise Carp. v. C.I.R., 408 F. App’x 908 (6th Cir. 2010) (waiver principles and privilege scope considerations in privilege disputes)