First Horizon Nat’l Corp. v. Houston Cas. Co., No. 2:15-cv-2235- SHL, 2016 U.S. Dist. LEXIS 142330 (W.D. Tenn. Oct. 5, 2016).
A Tennessee federal court ordered production of reinsurance contracts, but denied a motion to compel production of reinsurance-related communications in an insurance coverage dispute. The coverage case involved the settlement with the federal government concerning mortgage loans.
Among the discovery disputes the court resolved were the policyholders’ demand for reinsurance agreements and reinsurance-related communications. The information was sought to aid in the interpretation of the underlying insurance policy. The court held that the reinsurance agreements were discoverable and ordered their production.
As to the reinsurance-related communications, however, the court denied the motion because each of the carriers had submitted affidavits substantiating their position that the reinsurance-related communications reflected their business decisions to spread risk and not the substantive issues in the coverage dispute. Moreover, the reinsurance contracts involved were treaties, which the court found made the reinsurance-related communications even less relevant to the claims asserted by the policyholders.