Insurer Must Produce Financial Records As They Are Relevant To Bad Faith Claim

Mealey's (February 16, 2023, 4:46 PM EST) -- RIVERSIDE, Calif. — An insured seeking coverage for groundwater contamination at a county airport is entitled to discovery regarding the financial condition of an excess insurer’s parent and affiliate companies because the financial information is relevant to the insured’s allegation that the insurer had a financial motive for acting in bad faith when it stopped reimbursing the insured for remediation costs, a California federal magistrate judge said in denying the insurer’s motion for a protective order....