A video about the waiver of the privilege
See the full video at https://rumble.com/vimfzd-advice-of-counsel-as-a-defense-to-the-tort -of- bad-faith.html and at https://youtu.be/o464pGcwcK4  INTENTIONAL SHIPPING
Insurers often turn to external lawyers, or internal tort law who are licensed lawyers, for legal advice on their coverage provisions. receivables. In later disputes about the denial of coverage or the handling of damages by transport companies, a question that often arises is whether the advice provided by such a lawyer is protected from disclosure to the insured. Insurers may be required to disclose other privileged communications if the insurer relies on "advice of advisers" as a defense against the allegation of breach of contract or bad faith. bad faith by claiming that their behavior was reasonable because they trusted advice from counsel. When an insurer claims the defense, the subject is put in the advice it has received in question. By doing this, most courts conclude that the insurer waives the right to a lawyer and client. [ Chicago Title Insurance Co. mot Superior Court 1
I Sony Computer Entertainment America, Inc. v Great American Ins. Co., et al ., 229 F.R.D. 632 (N.D. Cal. 2005) Sony Computer Entertainment Company, Inc. sued American Home Assurance Co. and other insurance companies for incorrect rejection of insurance coverage in connection with two consumer cases against Sony. The suits came from claims of property damage, false advertising and other damages in connection with Sony's PlayStation and PlayStation 2 products. American Home filed proposals to force a response to the discovery and disputed Sony's claim of the attorney-client privilege at the deposits of Jennifer Liu, a lawyer and Sony's head of legal and business affairs.
Sony's wife Liu was designated by Sony as its most knowledgeable person for disposal under FRCP Rule 30 (b) (6) regarding one of the consumer lawsuits. At the deposits, Sony's attorney asserted the right to attorney-client and the product doctrine of attorney-work and instructed Liu not to answer questions.
CRIMINAL EXCEPTION EXCEPTION
A waiver of privilege may also occur when the carrier is sued for bad faith and / or fraud. For example, the California Evidence Code, section 956, states: "there is no privilege under this article if the attorney's services are sought or obtained to enable or assist anyone to commit or plan to commit a crime or fraud." Even without a law, the license to practice law is not a license to commit a crime.
A federal court ruled that a bad faith claim that does not include fraud is insufficient to trigger the exemption. In Freedom Trust v. Chubb Group of Insurance Cos ., 38 F.Supp.2d 1170 (C.D. Cal. 1999), the insured claimed that the privilege had been waived because the insurer refused coverage in bad faith. The court recognized that the lawyer "does not need to be aware of the fraud in order for the criminal fraud exemption to apply" and that the fraud exemption includes civil fraud. The court noted a division of authority nationally over whether an allegation of bad faith triggers the exemption from crime.
© 2021 – Barry Zalma. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He can be found at http://www.zalma.com and email@example.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurance claims staff. Follow Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the library for insurance claims – https://zalma.com/blog/insurance-claims-  bibliotek / Read posts from Barry Zalma at https://parler.com/profile / Hymn / post; and the last two issues of ZIFL at https://zalma.com/zalmas-insurance-fraud-letter-2/ podcast now available at https://podcasts.apple.com/us/podcast/zalma-on -insurance / id1509583809? uo = 4