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Facts

The Plaintiff was a passenger in a car involved in a collision in 1996. The collision was allegedly caused by another driver insured by the Defendant, Allstate Insurance Company. The Plaintiff claimed that Allstate failed to negotiate a good faith settlement of his claim and alleged that Allstate's claims process was deliberately designed to fraudulently enhance corporate profits through unfair and deceptive claims handling practices, including the use of internal claim valuation methods to underpay claims (paras 2-3).

Procedural History

  • District Court, October 2000: The trial court denied Allstate's motion for a protective order to prevent the discovery of Progress Development Summary (PDS) reports, which were used to evaluate Allstate employees. The court found that Allstate failed to establish good cause for the protective order (paras 4-8).

Parties' Submissions

  • Appellant (Allstate Insurance Company): Argued that the PDS reports were private, irrelevant, and not likely to lead to admissible evidence. Allstate also claimed that producing the reports would violate employee privacy and asserted a right to self-critical analysis. It sought a protective order to limit the use and dissemination of the reports (paras 4, 11).
  • Appellee (Plaintiff): Contended that the PDS reports were relevant to show how Allstate's claims handling practices, including severity goals, influenced the underpayment of claims. The Plaintiff argued that Allstate failed to demonstrate a clearly defined and serious injury that would justify a protective order (paras 5, 10).

Legal Issues

  • Whether the trial court's order denying Allstate's motion for a protective order is a collateral order subject to review by writ of error.
  • Whether Allstate demonstrated good cause for a protective order to restrict the discovery and dissemination of the PDS reports.

Disposition

  • The Court of Appeals held that the trial court's order denying the protective order was not a collateral order and thus not subject to review by writ of error (paras 13, 19).
  • The Court affirmed the trial court's decision to deny Allstate's motion for a protective order (para 23).

Reasons

Per Kennedy J. (Alarid and Castillo JJ. concurring):

  • The Court reaffirmed that pretrial discovery orders, including those granting or denying protective orders, are not collateral orders and are generally not reviewable by writ of error. Such orders do not meet the three criteria for collateral orders: conclusively determining the disputed question, resolving an important issue separate from the merits, and being effectively unreviewable on appeal from a final judgment (paras 13-14, 19).
  • The Court emphasized that Allstate could have sought an interlocutory appeal or refused to comply with the discovery order and appealed any resulting contempt judgment. These options provided an effective means of review (para 19).
  • The Court criticized Allstate for failing to cite relevant New Mexico authority on the discovery issues and for misrepresenting the proceedings below. It also admonished the Plaintiff's counsel for attaching documents to the appellate brief that were not part of the record (paras 20-22).
  • The trial court's denial of the protective order was upheld, as Allstate did not establish good cause for restricting the discovery or dissemination of the PDS reports (para 23).
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