Magistrate Judge Tse Orders Insurers to Unseal Logs, Produce CNA Communications

SAN FRANCISCO (LN) — U.S. Magistrate Judge Alex G. Tse ordered Homesite Insurance Company and its co-insurers to produce group communications involving non-party CNA and to unseal their privilege logs, finding the common interest doctrine did not protect documents shared with the primary insurer.

The dispute centered on whether Homesite Insurance Company, Argonaut Insurance Company, and Ironshore Indemnity Inc. could withhold group communications sent from December 3, 3024, to February 3, 2025, from defendants Newport Group Holdings, L.P. and Newport Group, Inc.

The insurers argued the common interest doctrine shielded the documents, claiming a shared legal interest in interpreting CNA’s Primary Policy Prior Acts Exclusion provision in connection with an underlying lawsuit and Newport’s coverage demand.

Tse agreed the insurers shared a common interest with each other, noting they sought advice on the same policy, claim, and dispute. He rejected Newport’s argument that the insurers’ differing positions during the period defeated the doctrine, finding no requirement that parties be in "lockstep" for a joint defense.

However, Tse found the doctrine did not extend to CNA, Newport’s primary insurer, because CNA was positioned differently under the primary policy than the excess insurers. The insurers’ joint interest agreement, signed by the plaintiff insurers and Indian Harbor Insurance Company, did not include CNA as a signatory.

"The Court is not persuaded, however, that CNA shared a legal interest with the Insurers or AXA XL," Tse wrote.

The judge ordered the insurers to produce any communications including CNA within 14 days of the May 12 order. Communications involving only the plaintiff insurers and/or AXA XL remained protected.

Tse also denied the insurers’ motion to seal their privilege logs, ruling that providing the logs to Newport on April 17, 2026, undermined their argument that public filing would grant Newport the requested relief. He ordered the logs refiled on the public docket by May 19, 2026.

Additionally, Tse ordered Argonaut Insurance Company to provide a statement of the applicable legal standard and reasons for keeping materials under seal by May 19, 2026, after failing to meet the seven-day deadline following Newport’s April 24 filing.