Plaintiff Entitled To Know Amount Of Coverage Remaining Under Defendant's Insurance Policy

Harco Nat'l Ins. Co. v. Grant Thornton LLP, 2008 NCBC 5 (N.C. Super. Ct. March 4, 2008)(Tennille)

Plaintiff sent discovery regarding the Defendant accounting firm's insurance coverage.  In addition to obtaining information on the face amount of the policy, plaintiff also sought information on the other claims made under the policy and the amount of coverage left under the policy.  The Court rejected the argument that plaintiff was entitled to discovery on the other claims, because it would "lead to unnecessary argument over the policy limits."

The Court ruled, however, that plaintiff was entitled to the information regarding the coverage remaining, because "when it comes time to negotiate, the amount of liability coverage available to a defendant should be disclosed to the plaintiff." A plaintiff is entitled to the "true facts" about the amount of coverage, which means the actual amount remaining to be paid under the policy.

The Court also observed that a refusal to provide accurate information about liability insurance coverage at the time of mediation would not be mediating in good faith.

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North Carolina Product Liability Blog - April 7, 2008 6:03 PM
Brooks Pierce LLP has launched the NC Business Litigation Report, a blog by Mack Sperling, Esq. It appears to be a daily grind of NC Business Court decisions. Highly recommended and worth the bookmark. Interesting story posted on a case...
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