In-house Counsel Performing Claims Handling Compelled to Appear at Deposition

    The special master granted the insured's motion to compel the deposition of the in-house counsel who had acted as a claims handler. Wolverine World Wide, Inc. v. The American Insurance Co., 2023 U.S. Dist. LEXIS 225007 (W.D. Mich. Dec. 1, 2023).

    The insured, Wolverine, moved compel the fact deposition of Travelers' in house counsel, Michael Ungaro. The deposition was noticed, but Travelers objected and refused to present Mr. Ungaro because he was in house counsel. Travelers argued that Mr. Ungaro "has been intimately involved in Travelers' defense of this declaratory judgment action." 

    Wolverine argued that Mr. Ungaro engaged in the ordinary business of claims handling, working alongside Travelers' Jane Kelly, for the last five years. Wolverine contended that Mr. Ungaro's position of overseeing the investigation, handling, analysis and evaluation of Woverine's claim in the ordinary course of Travelers' insurance business subjected him to sitting for a deposition. Travelers contended that Mr. Ungaro had at all times acted as Travelers' in house counsel, providing legal advice, and overseeing the anticipated and actual coverage litigation with Wolverine. 

    The special master found that because Mr. Ungaro was performing a business function and acting as a claims handler, Wolverine was entitled to depose him, regardless of his title, The lines were not blurred between Mr. Ungaro being the primary claim handler and being the attorney providing legal advice. Therefore, Mr. Ungaro was ordered to sit for a deposition, as deposing Mr. Ungaro was the only way that Wolverine could obtain the information needed. An insurer could not create a shroud of secrecy by simply designating an attorney to conduct an otherwise ordinary claim investigation. The fact that a person was a lawyer did not make all communications with that person privileged,