SAN FRANCISCO (Legal Newsline) - Attorneys seeking fees incurred as a result of insurer's not negotiating in good faith will have to give up some of their secrets.
The California First Appellate District ruled May 7 that Sheila and George Byers' attorney David Ginn waived the attorney-client privilege when he took on USAA in a dispute over the installation of hardwood flooring at the couple's home.
He sought so-called Brandt fees, awarded to attorneys who can prove their fees were increased by insurers breaching the covenant of good faith and fair dealing with their customers.
USAA sought every fee agreement with Gin's lawyers from the instant litigation, plus billing records, fee statements and invoices. Ginn refused to answer, citing the attorney-client privilege and the work product doctrine.
Contra Costa County judge Danielle Douglas sided with USAA, writing it would be prejudiced by not having access to that information while Ginn was seeking these types of damages.
The First District agreed in an opinion authored by Teri Jackson. If Ginn produces redacted records, the trial judge will view them in camera if USAA challenges them.
"USAA has a right to learn during discovery of the attorney fees aspect of the Byerses' alleged damages and that by seeking such damages the Byerses have impliedly waived the attorney-client privilege," Justice Jackson wrote.
"The Byerses have put at issue the attorney fees they incurred in an effort to seek coverage under their insurance policy, and disclosure of documents supporting their claim for such fees is necessary to fairly adjudicate the issue of damages."