Privilege Not Waived In Bad-Faith Insurer Suits, NJ Court Says

Law360, New York (August 27, 2013, 3:01 PM EDT) -- A New Jersey appeals court ruled Monday that individuals don't implicitly waive their attorney-client privilege when bringing bad-faith insurer claims, in the case of a family who sued New Jersey Manufacturers Insurance Co. after winning a $17.5 million jury verdict against its insured.

But the state Appellate Division said in an unpublished opinion that the privilege doesn't entirely shield attorney-client conversations in such cases because a central issue in such disputes is whether the insured would have settled the case for the policy limits, and therefore...
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