Reinsurance Documents, Communications Discoverable in Bad Faith Cases, La. Federal Judge Rules

LAKE CHARLES, La. — A Louisiana federal judge has ordered an insurer to produce reinsurance-related documents and communications in a coverage dispute, ruling that they are relevant and discoverable in cases in which a plaintiff seeks bad faith penalties against an insurer.

On Jan. 15, Magistrate Judge Kathleen Kay of the U.S. District Court for the Western District of Louisiana ordered Westchester Surplus Lines Insurance Co. to produce the reinsurance information within seven days of her order.

Westchester issued Leevac Shipbuilders LLC a surplus lines policy, which insured Leevac against property damages and business income losses. In January 2013, …