Court Must Conduct In Camera Review of Withheld Reinsurance Info, Ill. App. Panel Rules

PEORIA, Ill. — An Illinois court abused its discretion in failing to conduct an in camera review of reinsurance documents withheld on the basis of privilege by an insurer in a coverage action, an appellate court has ruled.

In an April 9 order, the Appellate Court of Illinois, 3rd District, concluded that Illinois law required the trial court to conduct the review before holding the insurer in contempt for refusing to produce the unredacted documents.

In 2005, Bender Shipbuilding & Repair Co. Inc. contracted with Seacor Marine LLC to build several ships in Alabama. Bender also contracted with Caterpillar Inc. …