Christiansen v. Farmers Insurance Exchange

Summary

The Supreme Court of Utah held that an insured need not establish a breach of the express terms of an insurance contract before pursuing discovery on a first-party bad faith claim. The court affirmed denial of Farmers Insurance Exchange's motion for a protective order, while holding that its request to stay the bad faith litigation was moot because arbitration of the express contract claim had concluded.

Holdings

1. The request to stay the bad faith claim was moot because arbitration of the express contract claim had concluded and the requested relief could no longer affect the litigants' rights.
2. An insured need not establish a breach of the express terms of an insurance contract before seeking discovery in connection with an ongoing first-party bad faith claim.
3. Farmers failed to demonstrate good cause for a protective order because the discovery concerned an ongoing bad faith claim and was not shown to be improper or irrelevant.

Questions Presented

1. Whether Farmers's request to stay the Christiansens' bad faith claim pending arbitration or resolution of the express contract claim remained justiciable after arbitration concluded.
2. Whether an insured must establish a breach of the express terms of an insurance contract before seeking discovery in litigation of a first-party bad faith claim.
3. Whether Farmers demonstrated good cause for a protective order barring discovery concerning the Christiansens' bad faith claim.

Disposition

affirmed