AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Docket Number
Attorney(S)
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Docket Number
Attorney(S)

In re NHB, LLC and WARRENTON PRODUCTS, INC., Chapter 11, Debtors. TALKING RAIN BEVERAGE COMPANY, INC., Mo v. nt,

Talking Rain Beverage Company Inc.'s Motion to Compel Production of Documents (Document No. 40)

DAVID P. McDONALD, United States Bankruptcy Judge

ORDER

On this date the Court held a hearing on Claimant Talking Rain's Motion to Compel Production of Documents. All of the issues were resolved at the hearing with the exception of Talking Rain's request for transcripts of statements of Debtors' employees that were made during the course of filing an insurance claim. Debtor's insurer, Fireman's Fund Insurance Company, investigated a potential claim by Talking Rain for the alleged improper bottling of its product.

Counsel for Fireman's Fund took statements of Debtors' employees which were made under oath and transcribed by a court reporter. Debtors have objected to the production of these statements. They assert that the statements are privileged and not discoverable.

Missouri Rule of Civil Procedure 56.01(b)(1) "authorizes discovery of matters not privileged." State ex rel. Cain v. Barker, 540 S.W.2d 50, 52 (Mo. 1968). Under Missouri law statements given by an insured to his insurer are privileged. Id. at 53. See also State ex rel. Day v. Patterson, 773 S.W.2d 224, 227 (Mo.Ct.App. 1989).

However, there is a distinction made under Missouri law between "[t]he relationship of a liability insurer, whose policy of insurance obliges it to defend its insured and to pay any judgment against its insured" and the relationship between the "insurer of property which has been damaged by casualty and the owner of such property." State ex rel. J.E. Dunn Construction Co., Inc. v. Sprinkle, 650 S.W.2d 707, 710 (W.D. Mo. 1983). The former relationship "is basically a relationship of identity of interest, while in the latter case the relationship, at least until the insurer acknowledges coverage, is basically adversarial." Id. The insurer-insured privilege has been extended to the former but not the latter type of relationship. Id.

At the hearing of this matter the parties stated that Debtors' employees made statements to Debtors' insurance company which ultimately led to a payment from the insurer to Talking Rain. Debtors' insurer was therefore acting to defend Debtors from any claim by Talking Rain. Such a relationship is one of an "identity of interest" and is covered by the insurer-insured privilege.

Talking Rain asserts that even if the statements are privileged, Debtors waived the privilege. Debtors produced the statement of one employee. Talking Rain argues that by producing that statement, Debtors have waived any privilege to the statements of all their other employees. Talking Rain fails to cite any authority in support of that proposition. The Court's own research has not uncovered any Missouri case which supports Talking Rain's position.

The Court finds that, at best, Debtors committed a limited waiver as to the statement of the one employee which was produced. Such a disclosure does not create a domino effect to waive the privilege for all of the other employees' statements. Accordingly,

IT IS HEREBY ORDERED that Talking Rain Beverage Company, Inc.'s motion to compel the statements of Debtors' employees given to Debtors' insurer is DENIED.

Use AI to get other relevant cases.

Comments

IN RE NHB, LLC, (Bankr.E.D.Mo. 2002)
(Sep 9, 2002)