A recent Arizona Court of Appeals decision, Everest Indemnity Insurance Company v. the Hon. John Rea, Judge of Sup. Ct of State of Az., 2015 WL 195450, addresses the attorney-client privilege in a bad faith case. Everest examines a highly fact sensitive and jurisdictionally specific issue of when an “implied waiver” of the attorney-client privilege occurs, even though the insurer has not asserted advice of counsel as a defense to a bad faith claim. The Court held that as long as the insurer had not put the legal advice that it received at issue in the pending litigation, an insurer defending against a bad faith case based on its subjective good faith, did not waive the attorney client privilege. …