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City of Detroit insurers seek correction of document production error
By Caroline Salls
Pittsburgh, May 9 - Three City of Detroit insurers asked the U.S. Bankruptcy Court for the Eastern District of Michigan to order the city to recall documents produced on May 6 because they contain "numerous privileged and confidential mediation-related documents," according to a Friday court filing.
Assured Guaranty Municipal Corp., National Public Finance Guarantee Corp. and Ambac Assurance Corp. said disclosure of the information in question was barred by an Aug. 13, 2013 mediation order. The insurers said they have not yet identified all of the offending documents.
The insurers said the city produced documents on May 6 in response to requests that it received from all parties. However, rather than producing documents to each requesting party that were tailored to that party's specific requests, Detroit chose to produce to all parties an identical mass set of roughly 250,000 documents for all requests.
"Because all parties received the same production set, the city had produced mediation-related documents to parties that had not been involved in those mediations to which those documents referred," the motion said.
The insurers said the city acknowledged that it erred and would ask the parties to "claw back" the documents, but the city drew attention to the sensitive documents by asking the parties to specifically claw back some of the information.
As a result, the insurers said the city should be ordered to recall all of the documents and correct its document production to eliminate those provided in violation of the mediation order.
A hearing is scheduled for May 12.
Detroit filed for bankruptcy on July 18, 2013 under Chapter 9 case number 13-53846.
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