Jordan and Anr v Towns Marine Electronics Ltd and Ors (The “Lady JI”) - Federal Court (Trial Div)(Noel J) - 30 April 1996

Discovery of documents - Whether reports of insurance adjuster appointed by defendant’s insurance broker protected by privilege

The plaintiffs were the owners of the yacht Lady JI. On 7 May 1995, while the first plaintiff was using a remote control device supplied by the defendant to pilot the vessel at the Ballard Locks in Washington, USA, the vessel was involved in a collision. On 24 May 1995 the plaintiffs’ solicitors informed the defendant that the collision was due to a malfunction of the remote control and that they were holding the defendant responsible for the damage resulting from the accident. Later in May 1995 the defendant’s insurance broker appointed an insurance adjuster “to investigate the claims made against [the defendant] with respect to this matter”. The adjusters prepared four reports on behalf of the defendant, dated 27 June, 18 July, 25 July and 11 September 1995. Solicitors for the defendant were appointed on 20 July 1995 On 26 July 1995 the plaintiffs filed their statement of claim. The defendant filed an amended statement of defence on 28 September 1995 alleging that the accident was caused solely by the negligence of the first plaintiff.