In Re: Mt. Hawley Insurance Company, Petitioner, in Which Contravest, Inc., Contravest Construction Company And…

Summary

The South Carolina Supreme Court answered a certified question from the Fourth Circuit on whether a denial of liability or an assertion of good faith in an answer waives the attorney‑client privilege. The Court held that such a denial, standing alone, does not place privileged communications “at issue” and therefore does not constitute a waiver. It adopted the Arizona Lee framework, requiring a prima facie showing of bad‑faith before a waiver can be found.