By voluntarily injecting a legal issue into the case, the insurer waived the right to keep its communications confidential. Catalina London v. Johnson & Bell, Ltd., 2012 U.S. Dist. LEXIS 147993 (N.D. Ill. Oct. 10, 2012).

   The Catalina London sued its former coverage counsel for giving negligent coverage advice in a declaratory judgment action filed on behalf of Catalina London in state court. Catalina London subsequently hired the Novak Law Firm for the underlying case.

    Catalina London alleged that the defendant committed legal malpractice by failing to advise it that it had a valid claim for rescission of the Policy due to a misrepresentation in the application. Catalina London also claimed that it could not bring the defense in the underlying case because it was presented too late in the litigation. Defendant argued it was entitled to privileged communications between Catalina London and the Novak Law Firm because, under Illinois law, if a cause of action was viable at the time an attorney was discharged, a plaintiff could not succeed on a legal malpractice claim against the former attorney.

   The Court granted defendants' motion to enforce the subpoena for privileged communications between the Novak Law Firm and Catalina London. Whether the Novak Law Firm could have still raised the rescission issue in the underlying claim was put at issue by Catalina London in its suit against defendant. Therefore, Catalina London waived its attorney client privilege and work product protection, making its communications available for inspection by defendant.