Eddy v. Farmers Property Cas. Ins. Co., 2026-Ohio-626
In an insurance bad faith action, a trial court may order production of an insurer’s claims file documents that are asserted to be protected by the attorney-client privilege and work product doctrine without first complying with R.C. 2317.02(A)(2) and Civ.R. 26(B)(4).
The plaintiffs, the Eddys, were injured in a 2020 automobile accident and pursued underinsured motorist benefits from their insurer, Farmers. After litigation over coverage was resolved and Farmers paid the policy limits, the Eddys filed a separate bad faith lawsuit, alleging Farmers unreasonably delayed settlement. During discovery, the trial court ordered Farmers to produce its entire claims file, including attorney communications and litigation related materials, without conducting an in-camera review. The Court of Appeals affirmed, relying on the Ohio Supreme Court’s prior decision in Boone v. Vanliner Ins. Co. (2001), which had allowed discovery of certain pre-denial claims file materials in bad faith cases.
The Ohio Supreme Court reversed the Court of Appeals’ decision, and held Boone had been superseded by statute. Specifically, the court held that discovery of attorney-client communications and work product materials in insurer bad faith cases was governed by R.C. § 2317.02(A)(2) and Civ.R. 26(B)(4), both of which require specific threshold showings and judicial review.
Specifically, the court held that privileged insurer-attorney communications may be disclosed only after:
- the insured makes a prima facie showing of bad faith, and
- the trial court conducts an in camera inspection to determine whether the communications relate to an attorney’s aiding or furthering ongoing or future bad faith conduct.
Importantly, the court ruled that allegations of bad faith alone are insufficient to overcome the privilege.
The court further held that claims file materials prepared in anticipation of litigation are presumptively protected. Disclosure of those materials is only permitted upon a showing of good cause. This protection applies to information generated during or in anticipation of litigation, not merely to attorney testimony.
Finally, the court held that in-camera review of the disputed documents is mandatory, i.e., a trial court must conduct an in-camera inspection of any disputed documents before ordering production of file materials when privilege or work product protection is asserted.
The Eddy decision establishes stronger privilege protections for insurers in Ohio bad faith litigation. It eliminates reliance on the Supreme Court’s prior decision in Boone as a standalone basis for compelled production of claims file materials. Trial courts must now follow a structured, statute-based analysis before ordering disclosure, providing clearer guidance and greater predictability for discovery disputes in insurance bad faith cases.
