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Saturday, June 24, 2006

Liability Insurance Information Should Be Discoverable

Yes, you read the title of this post correctly. Liability insurance information should be discoverable. In fact, in Davidson County and most of Middle Tennessee, it is. In other parts of the state it's not.

While liability insurance in and of itself does not determine whether or not there's money to fund a settlement or if a judgment will be collectible (especially when it comes to individual defendants), it does help to know if what you're pursuing is worth pursuing. And the earlier that all interested parties know this the better.

Judge Walter Kurtz ruled in Green v. Nashville Otolarynology Consultants, Davidson County Circuit Court, Case No. 95C-3947 (June 10, 1998) that liability insurance information was discoverable under Rule 26.02 of the Tennessee Rules of Civil Procedure. Part of the court's reasoning was that discovery of the nature and extent of liability insurance coverage promotes the efficient and effective administration of justice by assisting the parties in informed settlement negotiations.

If you haven't read this opinion, you need to; if you have read it, read it again. I believe that Judge Kurtz's interpretation of Rule 26.02 is correct, especially when one reads Rule 1 which requires that these rules "shall be construed to secure the just, speedy, and inexpensive determination of every action." (Emphasis added.) The disclosure of liability insurance information can only help facilitate these Rule 1 dictates.

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