Underwriters at Lloyd's London v. Narrows

OPINION

BURKE, Justice.

I. INTRODUCTION

The Narrows, a bar, restaurant and residence owned by Jeanne L. Lindley and Carson E. Lindley, was destroyed by fire in May 1989. After their proof of loss claim was rejected, the Lindleys (hereinafter “the insured”) sued Underwriters 1 alleging breach of contract and a “bad faith” refusal to pay on their claim. 2 In August 1990 Superior Court Judge Victor Carlson compelled Underwriters to produce, inter alia, its “bad faith” claims files and the financial statements of its members. He also ordered Underwriters to produce witnesses for depositions. In…