Computer Sciences Corporation v. Endurance Risk Solutions Assurance Co.

Background

Computer Sciences Corporation brought claims against Endurance Risk Solutions Assurance Co., Homeland Insurance Company of New York, and Aspen-related defendants for breach of contract and breach of the covenant of good faith and fair dealing. The court had previously denied the defendants’ motion to dismiss, and the parties had begun discovery. This order addressed a joint letter about Computer Sciences’ discovery requests to Endurance.

Endurance argued that several requests sought irrelevant or burdensome information. It also sought another opportunity to ask the court to stay discovery while it pursued a motion to enforce an alleged settlement agreement. The court noted that it had previously denied Endurance’s request to stay discovery.

Discovery Rulings

The court directed Endurance to produce all documents and information regarding its underwriting of the technology errors-and-omissions policy issued to Computer Sciences. The court sustained Endurance’s objection to producing information about underwriters of policies other than the policy issued to Computer Sciences.

The court denied Computer Sciences’ request for underwriting policies involving similar insureds. It found that Computer Sciences had not explained the relevance of those other policies and that requiring Endurance to search every file involving such policies would be burdensome and disproportionate to the needs of the case.

The court directed Endurance to produce all documents and information regarding its handling of Computer Sciences’ insurance claim, including materials kept outside Endurance’s claim file. It also directed Endurance to produce documents reflecting communications with reinsurers about the claim. The ruling required claim-handling rules, manuals, guidelines, instructions, and best practices in effect or under consideration during the relevant period for technology errors-and-omissions policies.

Other Rulings and Required Action

The court denied Endurance’s request for a pre-motion conference concerning another request to stay discovery. The court stated that this was Endurance’s second denied request to stay discovery and directed Endurance not to make a third request. The responsive documents were due by April 1, 2022.

The court warned that failure to comply could result in sanctions, including preventing Endurance from relying on materials not provided to Computer Sciences, preventing reliance on claims or defenses, and entering default judgment. The order resolved a discovery dispute and did not decide the underlying insurance-coverage claims.