A federal district court recently held that an insurer waived any claim of attorney-client or work product privilege when it disclosed otherwise potentially privileged information to its reinsurers and to its broker. In doing so, the court rejected application of the common interest doctrine to the communications at issue. That doctrine serves as an exception to the general rule that voluntary disclosure of privileged information to a third party waives applicable privileges.

Progressive Casualty – Privilege Waived -

In Progressive Casualty Ins. Co. v. Federal Deposit Insurance Corp., as Receiver of Vantus Bank, et al., Case No. 12-CV-04041 (N.D. Iowa Oct. 3, 2014), the court had previously compelled Progressive to produce certain information in connection with the FDIC’s claims against the insured bank’s former directors and officers. That information included Progressive’s communications with its reinsurers regarding coverage for the FDIC’s claims and provisions of the bank’s insurance policy. Progressive produced the information, but redacted portions on the grounds of attorney-client privilege and/or protected work product.