Bryce Corporation v. XL Insurance America, Inc., No. 1:23-cv-1814, 2023 WL 9004039 (S.D.N.Y. Nov. 28, 2023)

Issue Discussed: Discoverability of Reinsurance Information/Work Product

Submitted by Polly Schiavone

Date Promulgated: November 28, 2023

Court: United States District Court for the Southern District of New York

Issue Decided: Whether the defendant (insurer) is obligated to provide various items requested by the plaintiff (insured) in discovery including claims handling manuals, documentation in the possession of third parties, reinsurance information and documents related to loss reserves.

On a discovery dispute between the plaintiff (insured) Bryce Corporation (“Bryce”) and the defendant (insurer) XL Insurance America, Inc. (“XL”), the Court considered the discoverability of third-party and reinsurance information.

With respect to the discoverability of reinsurance information, the court held that Fireman’s Fund Ins. Co. v. Great Am. Ins. Co. of New York, 284 F.R.D. 132 (S.D.N.Y. 2010), was controlling.  The court rejected XL’s reliance on U.S. Fire Ins. Co. v. City of Warren, 2:10-cv-13128, 2012 WL 1454008 (E.D. Mich. Apr. 26, 2012), which held that the reinsurance information at issue was not discoverable.  The court noted that Fireman’s Fund provided persuasive authority from the Second Circuit, and that Warren was distinguishable because there, the sole issue was the legal question of coverage.  The court ordered, therefore, that “to the extent that the reinsurance information pertains specifically to the underlying policy and related claims at issue in this case, Defendant is directed to produce such information, absent any basis other than relevance for withholding or redacting the documents.”

Also before the court was the issue of whether documents concerning loss reserves are work product.  The court, however, deferred decision on this issue.