IN the SUPREME COURT of TEXAS 13 February 19 P3:59 BLAKE

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IN the SUPREME COURT of TEXAS 13 February 19 P3:59 BLAKE FILED IN THE SUPREME COURT OF TEXAS 13 February 19 P3:59 BLAKE. A. HAWTHORNE No. ______________ CLERK ____________________________ IN THE SUPREME COURT OF TEXAS ________________________________________________ In re Everest National Insurance Company, Gallagher Bassett Services, Inc. and Cheryl Verge _________________________________________________ Respondent: Hon. Bill Henry True Parties in Interest: Joseph and Amanda Ruiz _________________________________________________ On Mandamus from the Third Court of Appeals Austin, Texas No. 03-12-00750-CV Cause No. 12-1593 In the 274th Judicial District Court Hays County, Texas __________________________ ORIGINAL PETITION FOR WRIT OF MANDAMUS __________________________ Deanne C. Ayers State Bar No. 01465820 Julie B. Tebbets State Bar No. 00793419 AYERS & AYERS Ayers Plaza 4205 Gateway Drive, Suite 100 Colleyville, Texas 76034 817-267-9009; 817-318-0663 (fax) ATTORNEYS FOR RELATORS IDENTIFICATION OF PARTIES AND COUNSEL Pursuant to Rule 38.1(a) of the Texas Rules of Appellate Procedure, the following is a complete list of the parties to the trial court's final judgment, as well as the names and addresses of their trial and appellate counsel: DEFENDANTS/RELATORS: EVEREST NATIONAL INSURANCE CO.; GALLAGHER BASSETT SERVICES, INC.; and CHERYL VERGE Trial and Appellate Counsel: Deanne C. Ayers State Bar No. 01465820 Julie B. Tebbets State Bar No. 00793419 4205 Gateway Drive, Suite 100 Colleyville, Texas 76034 817-267-9009; 817-318-0663 Facsimile JUDGE/RESPONDENT Hon. Bill Henry State Bar No. 09486700 428th Judicial District Court Hays County Government Center 712 Stagecoach Trail, Third Floor San Marcos, Texas 78666 512-393-7700 PLAINTIFF/REAL PARTY IN INTEREST: JOSEPH RUIZ and AMANDA RUIZ Trial and Appellate Counsel: Joe K. Longley Texas Bar No. 12542000 1609 Shoal Creek Blvd., Suite 100 Austin, Texas 78701 512-477-4444; 512-477-4470 facsimile and i Ethan L. Shaw Texas Bar No. 18140480 John P. Cowart Texas Bar No. 04919500 1609 Shoal Creek Blvd. Suite 100 Austin, Texas 78701 512-499-8900; 512-320-8906 facsimile ii TABLE OF CONTENTS IDENTITY OF PARTIES AND COUNSEL ............................................................. i TABLE OF CONTENTS ......................................................................................... iii INDEX OF AUTHORITIES ...................................................................................... v STATEMENT OF THE CASE .................................................................................. 2 STATEMENT OF JURISDICTION.......................................................................... 4 ISSUES PRESENTED ............................................................................................... 4 STATEMENT OF FACTS ........................................................................................ 5 SUMMARY OF THE ARGUMENTS ...................................................................... 6 ARGUMENT AND AUTHORITIES ........................................................................ 7 Issue Number One: Respondent Abused Discretion In Ordering Production Of Attorney-Client Privileged Communications ........................................ 7 A. Standard of Review .................................................................... 8 B. The Trial Court Erred in Striking Florence Baker’s Affidavit in its Entirety ............................................................... 9 C. The Trial Court Erred in Ordering Production of Attorney Client Communications ............................................. 10 PRAYER .................................................................................................................. 15 VERIFICATION ...................................................................................................... 16 CERTIFICATE OF COMPLIANCE ....................................................................... 17 CERTIFICATE OF SERVICE ................................................................................ 18 iii APPENDIX .............................................................................................................. 19 1. Plaintiff’s Third Amended Original Petition (September 25, 2012); 2. Plaintiffs’ First Amended Special Exceptions, Motion for Protective Order, and Motion to Compel Discovery (September 25, 2012); 3. Defendants’ Response to Plaintiffs’ First Amended Special Exceptions, Motion for Protective Order, and Motion to Compel Discovery (October 8, 2012); 4. Plaintiffs’ Objections to Florence Baker Affidavit (October 9, 2012); 5. Defendants’ Response to Plaintiffs’ Objections to Florence Baker Affidavit (October 12, 2012); 6. Defendants’ In Camera letter and documents (October 29, 2012 letter to Judge Henry only – a Motion is being filed with the Court of Appeals requesting that it release to the Supreme Court the attachments of documents reviewed in camera which were submitted separately in a sealed envelope); 7. Order (October 16, 2012); 8. Order (November 1, 2012); 9. Transcript of October 16, 2012 hearing; 10. Notice of Filing – Defendant Gallagher Bassett Services, Inc.'s Objections and Responses to Plaintiffs' Request for Production and Response to Request for Privilege Log (November 9, 2012); 11. Order of Court of Appeals granting Emergency Stay (November 15, 2012); 12. Opinion of Court of Appeals (January 18, 2013). iv INDEX OF AUTHORITIES CASES Page Ford Motor Co. v. Leggat, 904 S.W.2d 643 (Tex. 1995) ........................................ 13 Humphreys v. Caldwell, 888 S.W.2d 469 (Tex. 1994) ........................................... 10 In re American Zurich Ins. Co., No. 01-11-00816-CV, 2012 WL 2923200 (Tex. App. – Houston [1st Dist.] July 12, 2012) ............................................ 14 In re Cerberus Capital Mgmt., L.P., 164 S.W.3d 379 (Tex. 2005) ........................... 9 In re Colonial Pipeline Co., 968 S.W.2d 938 (Tex. 1998) ........................................ 9 In re DuPont de Nemours & Co., 136 S.W.3d 218 (Tex. 2004) ............................ 11 In re Ford Motor Co., 211 S.W.3d 295 (Tex. 2006) .............................................. 4, 8 In re Prudential Ins. Co. of Am., 148 S.W.3d 124 (Tex. 2004) ................................. 8 In re WHMC, 996 S.W.2d 409 (Tex. App. – Houston [14th Dist.] 1999)(orig. proceeding) ................................................................................. 11 In re XL Specialty Insurance Co., 2012 WL 2476851 (Tex. June 29, 2012) ...... 8, 12 Marathon Oil Co. v. Moye, 893 S.W.2d 585 (Tex. App. – Dallas 1994)(orig. proceeding) ................................................................................. 11 Owens-Corning Fiberglas Corp. v. Caldwell, 818 S.W.2d 749 (Tex. 1991) .......... 13 Priesmeyer v. Pacific Sw. Bank, 917 S.W.2d 937 (Tex. App.—Austin 1996, no writ) ................................................................................................. 10 Requipco, Inc. v. Am-Tex Tank & Equip., Inc., 738 S.W.2d 299 (Tex. App. – Houston [14th Dist.] 1987, writ ref’d n.r.e.) ....................................... 10 Tex. Tech Univ. Health Scis. Ctr. v. Apodaca, 876 S.W.2d 402 (Tex. App. – El Paso 1994, writ denied) .......................................................................... 11 v CASES (Con't.) Page Texas Mut. Ins. Co. v. Morris, 2012 WL 5275467 (Tex. Oct. 26, 2012) ................ 14 Texas Mut. Ins. Co. v. Ruttiger, 381 S.W.3d 430 (Tex. 2012)................................ 14 Walker v. Packer, 827 S.W.2d 833 (Tex. 1992) ........................................................ 9 Weisel Enters., Inc. v. Curry, 718 S.W.2d 56 (Tex. 1986) ...................................... 11 RULES Page Texas Rule of Civil Procedure 193.3(c) .................................................................. 15 Texas Rule of Evidence 503(b) ............................................................................... 12 vi No. ______________ ____________________________ IN THE SUPREME COURT OF TEXAS ________________________________________________ In re Everest National Insurance Company, Gallagher Bassett Services, Inc. and Cheryl Verge _________________________________________________ Respondent: Hon. Bill Henry True Parties in Interest: Joseph and Amanda Ruiz _________________________________________________ On Mandamus from the Third Court of Appeals Austin, Texas No. 03-12-00750-CV Cause No. 12-1593 In the 274th Judicial District Court Hays County, Texas __________________________ ORIGINAL PETITION FOR WRIT OF MANDAMUS __________________________ TO THE HONORABLE SUPREME COURT OF TEXAS: EVEREST NATIONAL INSURANCE COMPANY, GALLAGHER BASSETT SERVICES, INC., and CHERYL VERGE, Relators, file the following Original Petition for Writ of Mandamus. 1 I. STATEMENT OF THE CASE The True Party in Interest brought the underlying suit seeking to recover for the alleged bad faith in the handling of Joseph Ruiz’ workers’ compensation claim. The underlying suit, styled Joseph Ruiz and Amanda Ruiz v. Everest National Insurance Company, Gallagher Bassett Services, Inc., and Cheryl Verge, Cause No. D-1-GN-12000705, was filed on March 9, 2012, in the 345th Judicial District Court of Travis County, Texas, which was later transferred to Cause No. 12-1593, in the 274th Judicial District Court of Hays County (hereinafter referred to as the “Underlying Suit”). The Underlying Suit asserts causes of action for violations of the Texas Insurance Code and Texas Deceptive Trade Practices Act. See Appendix 1. On September 25, 2012, the Real Parties in Interest filed a First
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