In re XL Specialty Insurance Co.

in which Justice HECHT, Justice WAINWRIGHT, Justice MEDINA, Justice GREEN, Justice JOHNSON, Justice GUZMAN, and Justice LEHRMANN joined.

We must decide whether, in a bad faith action brought by an injured employee against a workers’ compensation insurer, the attorney-client privilege protects communications between the insurer’s lawyer and the employer during the underlying administrative proceedings. We hold that the privilege does not apply.

I. Background

XL Specialty Insurance Company is Cintas Corporation’s workers’ compensation insurer. XL’s policy included standard provisions requiring…