North River Ins. Co. v. Columbia Cas. Co

In North River Ins. Co. v. Columbia Cas. Co., (1995 WL 5792, [SDNY 1995]) the District Court considered whether defendant was entitled to documents from ADR proceedings that would otherwise be privileged because it allegedly shared a common interest with plaintiff in the proceedings. The District Court explained that whether a common interest exists could not be determined from the parties' relationship alone ["the interests of the ceding insurer and the reinsurer may be antagonistic in some respects and compatible in others"]). The Court ultimately determined that a common-interest privilege did not exist, noting that (1) the parties were not represented by the same counsel; (2) defendant did not contribute to plaintiff's legal expenses nor exercise any control over its conduct of the proceedings; (3) there was no evidence that the two parties coordinated litigation strategy in any way; and (4) while their commercial interests coincided to some extent, their legal interests sometimes diverged.