Plaintiff moved to compel production of defendant American Red Cross' reinsurance agreements. Defendant objected on the grounds that it was self-insured up to $1 million, and, in its counsel's opinion, any judgment in the action would not exceed that amount. Relying upon precedent in the Seventh Circuit, as well as other federal court decisions from other jurisdictions, the U.S. District Court for the Central District of Illinois held that defendant's reinsurance agreements were discoverable and must be produced as part of a its initial disclosures under Rule 26(a)(1) of the Federal Rules of Civil Procedure, because a judgment in the action could at least potentially exceed the amount of the defendant's self-insurance. As such, the court granted that portion of plaintiff's motion to compel.
Click here to review a copy of the District Court's decision, captioned Hartman v. American Red Cross, No. 09-1302 (C.D. Ill. 2010).