In Law360’s mid-2024 report on key Colorado legal cases, a pivotal lawsuit before the Colorado Supreme Court could have a major impact on the insurance industry. The case, involving Hill Hotel Owner LLC and Hanover Insurance Co., questions whether communications between an insurer and experts hired for claims investigations are protected under attorney-client privilege.
Robyn Levin, a shareholder with Levin Sitcoff PC, emphasized the broader implications, noting that Hanover’s argument—that these communications should be privileged due to the close ties between the insurer and its experts—conflicts with federal court findings. These courts often view experts hired by insurers as objective evaluators, which can challenge claims of a bad faith investigation. Levin highlighted that this case could provide essential clarity on how independent experts’ roles are interpreted in the context of claims investigations, particularly regarding their objectivity and the extent of privilege.
Additionally, similar issues are being considered in another case involving El Dueno LLC, which questions the reasonableness of an insurer’s denial of coverage based on an expert’s opinion. Levin pointed out that the outcome of these cases could shape how courts address the relationship between insurers and outside experts, especially in bad faith cases.
If you are a Law360 subscriber, check out the full write-up here- https://www.law360.com/colorado/articles/1856920?nl_pk=e61e492b-e469-4326-93bd-46571731d8be&utm_source=newsletter&utm_medium=email&utm_campaign=colorado&utm_content=2024-07-29&read_main=1&nlsidx=0&nlaidx=0
