N.C. Federal Judge Says Reinsurance Communications Relevant to Insured’s Bad Faith Claim

WILMINGTON, N.C. — A North Carolina federal judge has denied an insurer’s motion for a protective order made in response to a request for reinsurance communications in a coverage dispute, ruling that the information is relevant to the insured’s bad faith claim.

In a Dec. 10 order, Magistrate Judge Robert B. Jones Jr. of the U.S. District Court for the Eastern District of North Carolina explained that the communications could lead to the discovery of admissible evidence regarding American Home's handling and investigation of PCS's claims.

From 1965 to 2006, Ward Transformer Company Inc. and Ward Transformer Sales and Service …