Waiver of Attorney-Client and Work-Product – You Can’t Be Just a Little Bit Pregnant

A recent Mississippi opinion dramatically underscores the dangers of an advice-of-counsel defense.  In Willis v. Allstate Ins. Co., — F.Supp.2d —, 2014 WL 1882387 (S.D.Miss., May 12, 2014), the court held that the insurer had waived both the attorney-client privilege and the work-product doctrine with respect to coverage counsel’s entire file – and not just that portion of it that the carrier was willing to produce – when its representatives testified that they relied on the attorney’s advice to deny liability.  As the saying goes, in for a penny, in for a pound. The policyholder Sandra Willis’ home was damaged by a fire on June 14, 2012, and she made a claim under her homeowner’s policy with Allstate Insurance Company. …