COURT COMPELS DISCOVERY OF REINSURANCE AND OTHER INSURANCE DOCUMENTATION FROM INSURER IN GARNISHMENT PROCEEDINGS
The judgment was entered in a class action by plaintiffs who lost their tuition payments for computer training programs at schools that abruptly closed in 2009. In attempting to collect on the judgment, plaintiffs served subpoenas on the schools’ insurers. Overruling objections to the relevance of the documents sought by the subpoenas, the magistrate compelled substantial discovery, including reinsurance policies and information, subject to a procedure where the insurer must verify “the accuracy and completeness of all the searches performed” by way of an affidavit and a subsequent deposition. The district court judge affirmed the decision of the magistrate, and rejected argument that the court lacked jurisdiction over garnishment proceedings. Smith v. Computertraining.com, Inc., Case No. 2:10-cv-11490 (USDC E.D. Mich. Sept. 26, 2014 & Dec. 29, 2014).
This post written by Michael Wolgin.
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