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Keywords

plaintifflitigationdepositiondiscoveryliabilityindemnitytrialaffidavitcorporationcivil procedurewrit of mandamus
defendantdepositiondiscoveryliabilityindemnitytrialcorporationcivil procedurewrit of mandamus

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In re Dana Corp., 138 S.W.3d 298, 47 Tex. Sup. Ct. J. 646

Facts

Dana Corporation, an asbestos products manufacturer, faced a discovery order from the trial court in an underlying litigation involving approximately 1,260 plaintiffs. The plaintiffs sought the production of Dana's insurance policies from 1930 onward and information regarding the amount of insurance remaining under those policies. The trial court ordered Dana to produce all commercial general liability insurance policies from 1930 to the present and to provide a knowledgeable witness for deposition regarding these policies. Dana contended that the order was overly broad and not applicable to the underlying litigation.

The trial court ordered Dana, the defendant in the underlying proceeding, to produce 'exact duplicates of any and all commercial general liability insurance policies … from 1930 to the present.'

Issue

Did the trial court abuse its discretion by ordering Dana Corporation to produce insurance policies dating back to 1930 and a knowledgeable witness for deposition?

Did the trial court abuse its discretion by ordering Dana Corporation to produce insurance policies dating back to 1930 and a knowledgeable witness for deposition?

Rule

A party may obtain discovery of the existence and contents of any indemnity or insurance agreement under which any person may be liable to satisfy part or all of a judgment rendered in the action, as per Texas Rule of Civil Procedure 192.3(f). Discovery orders requiring production beyond what procedural rules permit are considered an abuse of discretion.

A party may obtain discovery of the existence and contents of any indemnity or insurance agreement under which any person may be liable to satisfy part or all of a judgment rendered in the action, as per Texas Rule of Civil Procedure 192.3(f).

Analysis

The court found that the trial court's order was overly broad because the earliest reported exposure to asbestos occurred in 1945, making the request for policies dating back to 1930 irrelevant. The court emphasized that only those insurance policies under which Dana may be liable to satisfy a judgment are subject to discovery. While the plaintiffs had identified relevant products, the time period covered by the trial court's order was not adequately supported by the affidavits provided.

The court found that the trial court's order was overly broad because the earliest reported exposure to asbestos occurred in 1945, making the request for policies dating back to 1930 irrelevant.

Conclusion

The Supreme Court conditionally granted the writ of mandamus, directing the trial court to modify its order to limit the production of insurance policies to those covering exposure from 1945 to the present.

The Supreme Court conditionally granted the writ of mandamus, directing the trial court to modify its order to limit the production of insurance policies to those covering exposure from 1945 to the present.

Who won?

Dana Corporation prevailed in part, as the court agreed that the discovery order was overly broad and required modification to align with the applicable time period of exposure.

Dana Corporation prevailed in part, as the court agreed that the discovery order was overly broad and required modification to align with the applicable time period of exposure.

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