SC Attorney-Client Privilege Ruling Is A Gift To Insurers

Law360 (June 24, 2019, 3:17 PM EDT) -- As Law360 recently reported, the South Carolina Supreme Court delivered a gift to insurers facing bad faith claims in that state. The court determined that, where a policyholder brings a bad faith claim against its insurer and the insurer answers the claim by denying liability, the policyholder’s right to obtain discovery of the insurer’s attorney-client privileged communications concerning the insurer’s handling of the claim must be determined on a case-by-case basis.

Despite the court’s best efforts to balance competing concerns and reach a relatively innocuous holding, this decision will only invite more insurance-related discovery disputes in the future, while encouraging insurers...

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