New Washington Supreme Court Decision

Por Diane L. Polscer

"The Supreme Court of the State of Washington has significantly reduced the protection afforded to insurers by the attorney-client privilege. In Cedell v. Farmers Ins. Co. of Washington, 176 Wash.2d 686, 699-700, 295 P.3d 239, 246 (2013), the court held that there is a presumption of no attorney-client privilege in “first party insurance claims by insured’s claiming bad faith in the handling and processing of claims, other than UIM claims,” and that, even if the insurer overcomes this presumption, the privilege may be waived if the insurer may have acted in bad faith. The court created a framework that considers both the nature of the attorney’s duties and the potential foundation for a bad faith claim to proceed. Understanding this framework and the potential application of the Cedell decision is essential in handling insurance claims, and in any related litigation, in the State of Washington. Moreover, as a district court in another jurisdiction has already adopted the Cedell analysis, this decision may be more than a cautionary tale for other jurisdictions.”

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Términos mencionados en esta doctrina: washington, attorney, privilege, decision, presumption.