A Chubb unit embroiled in a lawsuit with Smithfield Foods Inc. is pushing to depose the company’s chief legal officer, Tennille Checkovich, ahead of an April trial in the North Carolina Business Court.

Ace American Insurance Co. filed a motion Friday requesting a de bene esse deposition, arguing that Checkovich’s testimony is crucial even though discovery has ended. The motion was reinforced with a legal memorandum on Monday.

Dispute Over Insurance Coverage for Nuisance Suits

The case centers on Smithfield Foods and its subsidiary, Murphy-Brown LLC, which claim Ace American breached its contract by failing to cover indemnification costs related to hog farm nuisance lawsuits brought by North Carolina property owners.

While the court has already ruled that Ace American breached its duty to defend, the trial will focus on determining the amount the insurer must reimburse.

Why Chubb Wants Checkovich’s Testimony

Ace American insists that Checkovich, formerly a McGuireWoods LLP partner, has direct knowledge of the legal costs incurred in the underlying hog farm litigation. The insurer contends:

• She led McGuireWoods’ litigation team in the nuisance cases.
• She billed the most hours in the lawsuits.
• She can confirm whether the defense costs were reasonable and necessary.

Since Smithfield and Murphy-Brown have refused to produce her testimony voluntarily, Chubb argues the deposition is necessary to clarify what costs are at issue.

Background on the Nuisance Litigation

The underlying lawsuits were filed by North Carolina residents living near Smithfield and Murphy-Brown’s hog farms, citing noise, odors, and pollution as disruptions to their properties.

After five bellwether trials resulted in verdicts for the plaintiffs, Smithfield reached a global settlement for the nuisance claims.

Ongoing Coverage Dispute

Following the settlement, Smithfield and Murphy-Brown sued Ace American and other insurers in 2019. While Old Republic Insurance Co. and American Guarantee & Liability Insurance Co. have since been dismissed from the case, Ace American remains.

A Business Court ruling last year placed the burden on Chubb to prove which costs were reasonable, rather than requiring Smithfield and Murphy-Brown to justify their defense expenses.

Legal Representation

• Smithfield Foods and Murphy-Brown are represented by Smith Anderson Blount Dorsett Mitchell & Jernigan LLP and Reed Smith LLP.
• Ace American is represented by Bailey & Dixon LLP and Clyde & Co. US LLP.

As the April trial approaches, the Business Court will decide whether Chubb’s deposition request will be granted, potentially shaping the outcome of this high-stakes insurance dispute.