In a discovery dispute following the liquidation of Western Insurance Company ("Western"), a Utah federal district court granted a motion to compel a 30(b)(6) deposition testimony regarding Western's reinsurance agreements. Western objected to the discovery on the grounds that the subject Directors and Officers should have made reinsurance claims prior to liquidation, and the failure to do so resulted in millions of dollars lost for the company. The court granted the motion to compel based on that assertion, deeming the testimony regarding reinsurance agreements, payments, and settlements to be relevant to the Directors and Officers' preparation of their defense to that assertion. The court stated that if no reinsurance proceeds were received by Western, the Directors and Officers were still allowed to verify that through deposition testimony, because had Western received any payments on claims, that might provide evidence of the value of those claims at the time of liquidation.
Western Ins. Co. v. Rottman, Case No. 13-436 (USDC D. Utah Dec. 28, 2016)
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