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SC Justices Set Test For Insurers' Waiver Of Atty-Client Shield

Law360 (June 12, 2019, 7:59 PM EDT) -- South Carolina's high court ruled Wednesday that insurance companies facing bad faith actions brought by policyholders don't automatically waive attorney-client privilege for documents sought in such suits by denying liability.

The South Carolina Supreme Court rendered its unanimous opinion in response to a certified question from the Fourth Circuit in Mt. Hawley Insurance Co.'s dispute with its insured, ContraVest Construction Co., over Mt. Hawley's denial of coverage for a construction defect suit.

Mt. Hawley had petitioned the Fourth Circuit in an attempt to vacate a lower court's order directing it to hand over ContraVest claim files that it contended were protected...

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