Calif. Court: Insurers Hold Power to Waive Attorney-Client Privilege for Bankrupt Asbestos Defendant

LOS ANGELES –– A California appellate court has granted a petition for writ of mandate in a dispute involving bankrupt asbestos defendant Special Electric, ruling that the company’s insurers hold the power to waive attorney-client privilege for the purpose of verifying discovery responses.

In the April 30 opinion, the California 2nd District Court of Appeal effectively answered the question who can waive attorney-client privilege on behalf of a dissolved corporation with no officer, directors or employees.

The lawsuit was filed by Mary Melendrez on behalf of Lario David Melendrez, whose alleged exposure to asbestos caused him to develop mesothelioma. …