{"id":898228,"date":"2020-11-18T11:51:26","date_gmt":"2020-11-18T18:51:26","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898228"},"modified":"2020-11-18T11:51:29","modified_gmt":"2020-11-18T18:51:29","slug":"claims-handling-manual-trade-secret","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/claims-handling-manual-trade-secret\/","title":{"rendered":"Court\u2019s Opinion Provides Guidance on Protecting a Claims Handling Manual as a Trade Secret"},"content":{"rendered":"\n

Karl A. Schulz | Property Insurance Law Observer<\/a><\/p>\n\n\n\n

In\u00a0Chavez v. Std. Ins. Co.<\/em>, 2020 U.S. Dist. LEXIS 203610 (N.D. Tex. Oct. 30, 2020), Judge David C. Godbey considered a variation on a common scenario that arises in first party cases.\u00a0 Typically, the insured\/plaintiff wants an insurer\u2019s claims handling manual<\/a> to use against the insurer in proving claims under Texas Insurance Code Chapter 541 and the DTPA.\u00a0 However, as Judge Godbey explained, such manuals are not automatically discoverable.\u00a0 Also, insurers can significantly increase the chances that a court will protect such manuals from unrestricted discovery and use in litigation by providing certain affidavit evidence.<\/p>\n\n\n\n

The plaintiff in Chavez <\/em>was receiving long-term disability benefits from Standard Insurance Company (\u201cStandard\u201d).  Standard terminated Chavez\u2019s benefits after a medical examination.  Litigation ensued.  Chavez requested Standard\u2019s claims handling manual in discovery.  To avoid a discovery dispute, Standard produced the manual pursuant to an agreed protective order.  Chavez subsequently sought to undo Standard\u2019s designation of the manual as confidential trade secret under the protective order.       <\/p>\n\n\n\n

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Judge Godbey observed that courts have routinely held that an insurer\u2019s claims handling manuals are trade secrets.  He also considered the affidavit evidence provided by Standard in support of its request to keep the manual a confidential trade secret.  The affidavit provides a roadmap to other insurers attempting to protect such manuals from unprotected discovery, indicating that the affiant should emphasize:<\/p>\n\n\n\n