Supreme Court of Ohio Clarifies Attorney-Client Privilege in Insurance Bad Faith Claims

In Eddy v. Farmers Property Cas. Ins. Co., Slip Opinion No. 2026-Ohio-626, the Supreme Court held that Boone v. Vanliner Ins. Co., 2001-Ohio-27, which created an exception to the attorney-client privilege where bad faith is alleged against an insurer has been “completely abrogated” by statute. Specifically, R.C. 2317.02(A)(2) now controls and requires: (1) a prima facie showing of bad faith; and (2) an in camera inspection where only documents which “are related to the attorney’s aiding or furthering an ongoing or future commission of bad faith by the client” are discoverable. R.C. 2317.02(A)(2). The Court further held that R.C. 2317.02(A) applies to documentary evidence not just testimony, resolving a split in decisions on that topic. As to the work-product doctrine, it applies to claims file “information” and is abrogated “only upon a showing of good cause therefor,” Civ.R. 26(B)(4). Further, an insurer who objects to production making general claims of privilege and provides a privilege log that “merely states, in a conclusory manner, that the documents are privileged” does not waive privilege by failing to provide “sufficient detail.” Eddy v. Farmers Property Cas. Ins. Co., 2024-Ohio-1047, ¶ 35 (1st Dist.), appeal allowed, 2024-Ohio-3313.