Litigation Privilege Claim Fails Due to the 'Two Hats' of ICBC
(Update February 12, 2015 – the below decision was overturned in reasons for judgement released today by the BC Court of Appeal)
I previously discussed the Two Hats of ICBC and suggested fixing the conflict of interest this creates. Reasons for judgement were released earlier this year by the BC Supreme Court, Vancouver Registry, demonstrating this conflict of interest in action in the context of a litigation privilege claim.
In the recent case (Raj v. Khosravi) the Plaintiff was involved in a motor vehicle collision. He was insured with ICBC and met with an adjuster to advance his claim. After the initial meeting the ICBC adjuster commissioned the services of a private investigator who produced a report.
In the course of his lawsuit the Plaintiff requested a copy of this report but ICBC refused to provide it arguing it was subject to litigation privilege. The plaintiff argued that the report was commissioned in the ‘investigative stage’ following the collision and further that even if the report was in part prepared for the purpose of defending subsequent litigation, it was also commissioned in the context of his claim for Part 7 benefits. Mr. Justice Groves agreed and ordered the report to be disclosed. The Court provided the following reasons:
 It is clear there were two distinct purposes for this investigative report. That is conceded by the Defendant. The question then becomes, was the dominant purpose litigation? And has the defendant met the onus of satisfying the court that in fact the dominant purpose was litigation?…
 I am also of the view that the defendant’s claim for privilege must fail, in regards to a dominant purpose analysis. Again, assuming that we’ve gotten over the litigation privilege hurdle, here this investigation, by the adjuster’s own admission, had more than one purpose. As such, the onus of claiming and eliminating the competing purpose rests on the defendant.
 I agree with the submission of the plaintiff that, during the entirety of the evidence of the adjuster, both in affidavit and during his cross-examination on his affidavit, there is a strong suggestion, a clear suggestion, that the purpsoe of this investigative report was a true dual purpose report.
 Again, the information obtained by the adjuster, at his interview with the plaintiff on November 14, 2006 was information necessary to potentially adjudicate a tort claim, and potentially adjudicate a Part 7 claim. In discovery, the adjuster confirmed that he had retained the investigator during the meeting with the plaintiff, that “the intention is to get information that is going to contradict what I was told in the initial appointment”.
 What he was told in his initial appointment related to both Part 7 claims as well as tort claims. The adjuster seemed to draw no distinction in the investigation, as to which of those two claims is to be covered or emphasized. As such, the onus of showing that the dominant purpose of the report was litigation cannot be met, on the evidence.
 Based on what I have said, I will allow the appeal of the master in regards to the report of the investigator, dated December 15, 2006 and order that it be disclosed.
To my understanding this decision is not publicly available but, as always, I’m happy to provide a copy to anyone who contacts me and requests one.