BOSTON OLD COLONY INSURANCE COMPANY, A FOREIGN CORPORATION, PETITIONER,
v.
RAUL GUTIERREZ, RESPONDENT
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Boston Old Colony Insurance Company sought review of an order compelling discovery from the attorneys who represented both the insurer and the insured in an underlying negligence action. The court held that the original plaintiff, as a third-party beneficiary of the insurance policy, has the same discovery rights as the insured would have, and therefore the attorneys must respond to discovery requests and produce their files.
Yes. The court held that under the third-party beneficiary doctrine established in Thompson v. Commercial Union Insurance Company, an original plaintiff who obtains a judgment against a defendant in excess of the defendant's insurance coverage stands in the same posture as the insured and may compel discovery from the defense attorneys, including deposition and production of files.
[1] A plaintiff who obtains a judgment against a defendant in excess of the defendant's insurance coverage may bring an action for bad faith against the insurance company wit…
[2] Attorneys retained by an insurance company to represent both the company and its insured in an underlying action are subject to discovery, including deposition and produc…
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Join FLexlaw to unlock all legal intelligence“As a third party beneficiary of the insurance policy, Gutierrez stands in the same posture as that of Brown, the insured. Just as Brown would be entitled to discovery, including deposition and production of files by the attorneys, since both he (Brown) and Boston Old Colony were their clients, Gutierrez has the same right of discovery in furtherance of the preparation of his case.”
Establishes that the original plaintiff, as a third-party beneficiary, has equal discovery rights to the insured
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Join FLexlaw to unlock all legal intelligenceRaul Gutierrez was injured in an automobile accident caused by Bruce E. Brown. Gutierrez sued Brown and Boston Old Colony Insurance Company, offering …
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NATHAN, Judge.
This cause is before us on a petition for writ of certiorari filed by Boston Old Colony Insurance Company, defendant in the trial court, seeking review of an order granting a motion to compel discovery.
The question presented for our consideration in this case is whether a lawyer hired by an insurance company tO' defend the company and its insured in an action which results in a verdict in excess of the policy limits (and a judgment against the insured personally) may be deposed and required to produce the file in a later action for “bad faith” brought by the original plaintiff.
There is no question that had the defendant-insured, Bruce E. Brown, brought a bad faith action against his insurer, co-defendant, Old Colony, Brown would have been entitled to discovery as the attorneys represented both Old Colony and Brown. The quaere then, is whether Raul Gutierrez, as the initial party plaintiff, without an assignment of Brown’s rights, can compel discovery from the defendants’ attorneys.
The facts of this case as set out in the complaint are that the plaintiff, Gutierrez, sustained serious injuries in an automobile accident. He filed suit against the negligent party, Brown, and Brown’s insurer, Boston Old Colony Insurance Company. Brown had reported the accident and complied with all other conditions of his policy. Gutierrez offered to settle the claim for $10,000, the policy limit, but Boston Old Colony refused. Following a jury trial, a verdict and judgment were entered in the amount of $1,418,350.16. Boston Old Colony paid $10,000 in partial satisfaction of the judgment. In this action, Gutierrez seeks to recover the balance of the judgment from Boston Old Colony due to its alleged negligence and bad faith in failing to settle for the policy limits and thereby causing a judgment to be entered against Brown.
The attorneys who were retained by Boston Old Colony to represent both Boston Old Colony and Brown, its insured, in the original action were subpoenaed duces tecum for deposition to bring their respective files concerning the accident litigation. They refused to testify and refused to produce their files for inspection by the plaintiff. Following five months of procedural skirmishing, the trial court entered an order compelling the attorneys to comply. In this petition for certiorari, the defendant contends that to compel oral deposition by the attorneys and production of the files will cause a breach of the lawyer-client privilege of confidentiality.
In Shingleton v. Bussey, Fla.1969, 223 So. 2d 713, the Florida Supreme Court established the doctrine that an insured has the right to recover against his insurer because of the latter’s bad faith in failing to settle a claim against its insured within policy limits. In extending the Shingleton doctrine, the Florida Supreme Court held, in Thompson v. Commercial Union Insurance Company of New York, Fla.1971, 250 So. 2d 259, that a plaintiff in a personal injury action who obtained a judgment against a defendant in excess of the defendant’s insurance coverage could bring an action for bad faith against the insurance company without an assignment from the defendant insured on the third party beneficiary theory. It is well established that a third person can enforce a contract entered into between others for his benefit. See 81 A.L.R.
1279. As a third party beneficiary of the insurance policy, Gutierrez stands in the same posture as that of Brown, the insured. Just as Brown would be entitled to discovery, including deposition and production of files by the attorneys, since-both he (Brown) and Boston Old Colony were their clients, Gutierrez has the same right of discovery in furtherance of the preparation of his case.
The petition for a writ of certiorari is denied.
PEARSON, Judge
(concurring specially).
I concur in the decision reached only because I do not feel that the question of privilege is reached in this matter. There is no doubt that the lawyers must appear and that they may be examined. The extent of that examination is, I think, an open question.
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Citator
Cited By (17 total)
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Allstate Indem. Co. v. Ruiz, 899 So. 2d 1121 (Fla. 2005)…red, entitlement to all materials and documents up to and including the date of judgment, is extended to him. Id. at 243 (footnote omitted). The rationale employed in Stone stemmed from the decision in Boston Old Colony Insurance Co. v. Gutierrez, 325 So. 2d 416 (Fla. 3d DCA 1976), a case decided just months before Stone, in which a third-party claimant sought documents from the law firm that had represented the insurance company in the underlying action. See Stone, 326 So. 2d at 243. In Boston Old Colony,…
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Brainard Stone and Beulah Stone v. Travelers Ins. Co., 326 So. 2d 241 (Fla. 3d DCA 1976)…d this petition for certiorari ensued. Travelers contends that the documents are work product and thus privileged, but concedes that the matters are not subject to any other privilege. See Boston Old Colony Insurance Company v. Gutierrez, Fla.App., 325 So. 2d 416, opinion filed January 20, 1976. The plaintiffs contend that the materials cannot be work product because work product is defined as matters in preparation for trial whereas the documents sought to be discovered are mere business records and not in…
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Fid. & Cas. Ins. Co. of N.Y. v. Taylor, 525 So. 2d 908 (Fla. 3d DCA 1987)…in distinguishable from the familiar “bad faith” failure to settle or defend a third-party’s action against a liability carrier’s insureds. See Stone v. Travelers Ins. Co., 326 So. 2d 241 (Fla. 3d DCA 1976); Boston Old Colony Ins. Co. v. Gutierrez, 325 So. 2d 416 (Fla. 3d DCA 1976), cert. denied, 336 So. 2d 599 (Fla.1976); American Fire & Casualty Co. v. Davis, 146 So. 2d 615 (Fla. 1st DCA 1962); see also U.S. Fire Ins. Co. v. Clearwater Oaks Bank, 421 So. 2d 783, 784 (Fla. 2d DCA 1982). In those cases, like…
Previewing 3 of 17 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Shingleton v. Bussey, 223 So. 2d 713 (Fla. 1969)
- Gulf Stream Motors, Inc. v. Christina Cook & the Fla. Indus. Comm'n, 223 So. 2d 713 (Fla. 1969)
- Thompson v. Commercial Union Ins. Co. OF NEW York, 250 So. 2d 259 (Fla. 1971)