The Appellate Division, Fourth Department, issued a decision in Rickard v. New York Cent. Mut. Fire Ins. Co., 2018 NY Slip Op 06333 (Sept. 28, 2018), that by its terms opens up insurance carriers’ litigation files to judicial in-camera inspection, and insurers as well as others ought to be worried. The decision also appears to be a departure from established New York law.

Background

Plaintiff Rickard brought an action for supplementary underinsured motorist (SUM) benefits under his insurance policy against New York Central Mutual Fire Insurance Company (New York Central). In the course of discovery, Rickard served a Notice to Produce, seeking New York Central’s entire SUM claim file. The insurer produced its claim file up until the date Rickard filed this action, relying on Lalka v. ACA Ins. Co., 128 A.D.3d 1508 (4th Dept. 2015). New York Central extended a settlement offer. Plaintiff’s counsel responded with a letter seeking New York Central’s entire claim file, including documents and information dated after Rickard sued its insurer.