Vlado v. CMFG Life Insurance Company

Background

The parties submitted a joint letter about a discovery dispute following two depositions conducted on January 4, 2024. The witnesses discussed information in CMFG Life Insurance Company’s internal systems concerning an insurance policy on the life of Sally Green. Vlado argued that CMFG had not produced information about fraud alerts, policy communications, payment history, call logs, and other policy data stored in those systems.

The parties partially resolved the dispute. CMFG agreed to review its systems and produce additional records, and the parties jointly requested a 30-day extension of fact discovery. They did not agree about Vlado’s request for sanctions based on the allegedly late disclosure.

The Parties’ Positions

Vlado argued that CMFG had been aware of alleged warning signs concerning the policy as early as 2019, had continued collecting premiums, and later relied on those same alleged warning signs when it voided the policy after Vlado submitted a benefits claim. Vlado maintained that earlier requests for records concerning fraud alerts and the policies covered information stored in CMFG’s internal systems.

Vlado further argued that the January 4 depositions showed that CMFG had not produced the actual fraud alerts and other system records. Vlado requested an additional 30 days of discovery, production of the system data, and sanctions under Rule 37 of the Federal Rules of Civil Procedure. The requested sanctions included $7,750 in legal fees plus ordinary court-reporting expenses related to preparing for and conducting the depositions.

CMFG responded that Vlado misunderstood the testimony of two call-center representatives who were not involved in the policy investigation. CMFG said it had produced the only fraud alert entered on the policy, a premium-payment log, and all call recordings it possessed concerning the policy. CMFG also said it produced screenshots of the relevant internal systems after the depositions, and that those screenshots confirmed its earlier production.

CMFG argued that Vlado had not requested access to its internal systems in written discovery and that CMFG had complied with its disclosure duties. It asked the court to deny sanctions.

Court’s Action

The court extended the fact-discovery deadline to February 9, 2024. It ordered CMFG to produce the relevant data from its systems by January 26, 2023, as stated in the order. The court said it would address sanctions at the conference scheduled for January 24, 2024. Thus, the order did not grant or deny Vlado’s request for sanctions.

The court also directed the clerk to terminate ECF No. 57 and required a post-discovery joint status letter by February 16, 2024.