The Greenbrier Classic, the annual PGA Tour event in West Virginia, operated by Old White Charities, Inc., has a unique fan experience. Each spectator receives $100 if a Tour player sinks a hole-in-one on the course’s par-3 18th hole, $500 if a second player aces the hole, and $1,000 if a third accomplishes the feat.
During the 2015 tournament, Greg McNeill sank a hole-in-one, providing the spectators with an instant $18,900 in cash. Later that day, Justin Thomas used his pitching wedge to ace the 137 yard hole, giving the spectators another $173,500! Alas, there was no third ace, but the spectators left the tournament with a collective payout of $192,400. Read the ESPN article chronicling the feat here.
Surely the Classic’s operator, Old White, had insurance for such an unlikely yet expensive accomplishment? Well, it thought so, but the insurance company denied coverage because the policy contained a hole-length-limitation clause requiring the shot to be at least 150 yards for coverage to apply. With the PGA’s pin placement that day, the length from tee box to hole was only 137 yards—13 yards shy of the insurance company’s mandate.
Old White sued its insurance agency, Bankers Insurance, alleging negligence for failing to procure coverage without a hole-length limitation. During discovery, Old White moved to compel the deposition of Melvin Tull, Bankers Insurance’s General Counsel. Bankers, which did not have the opportunity to file a written response, argued that, because Tull is a GC, “there is no way [a deposition] would not violate the attorney–client privilege.”
The court ruled that, regardless of the attorney–client privilege, Old White could depose the General Counsel. The court noted that More…