It has recently been held that the Attorney-Client Privilege is waived where the Plaintiffs request their attorney fees as Damages. This ruling was made in a recent case in which the Plaintiffs themselves claimed that they were required to enforce the Good Faith Covenant under an Insurance Policy issued to a stucco and drywall contractor. The Court treated the Claim in that case as a Claim for Damages as a result of the Defendant Insurance Company's alleged Breach of the implied Good Faith Covenant in that regard: Download Mancini v. Insurance Corporation of New York (S.D. Cal. Order of Stormes, United States Magistrate Judge, Filed June 18, 2009), attached Official Slipsheet Opinion at 6-7, 10.
Many other rulings were made in that decision as well, almost entirely favorable to the Insurance Company on pending Discovery Issues in that case.
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