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Circuit Court Rules On "Fiduciary Exception"

Law360 (April 3, 2007, 12:00 AM EDT) -- Rejecting a judge’s use of the so-called “fiduciary exception,” a federal appeals court has vacated an order that insurer Health Net Inc. hand over documents it was withholding under attorney-client privilege.

In an opinion issued Monday, the U.S. Court of Appeals for the Third Circuit said the lower court had erred in applying the exception to the company because Health Net isn’t a fiduciary of its New Jersey subsidiary, which is the actual defendant in the case.

Despite the ruling in favor of Woodland Hills, Calif.-based...
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