Texas Court Halts Insurer’s Bad Faith Production of Claim Notes, In-House Counsel Communications

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In ruling that the lower court had abused its discretion in ordering production of the at-issue documents, the Court of Appeals reasoned that the insurer had made a prima facia showing of work product protection, which could not be overridden by any substantial need of the other party, and that the attorney-client privilege applied to the communications.

The ruling has caused concern among policyholders who believe that insurers often use legal loopholes to avoid paying out legitimate claims. Samuel Lopez, an investigative reporter for the USA Herald, comments, “This ruling reinforces the need for policyholders to be vigilant in protecting their rights and interests. In many cases, insurers will use any means necessary to avoid paying out claims, and policyholders need to be aware of the tactics that insurers use to protect their bottom line.”

In conclusion, this case highlights the importance of policyholders understanding their rights and the obligations of insurers. When an insurer’s actions are deemed to be in bad faith, policyholders can face a long and drawn-out legal battle, and it is crucial that policyholders understand the legal landscape and the options available to them.