The accountant-client privilege doesn’t seem to get as much attention as the other more commonly used privilege defenses such as attorney-client or doctor-patient. However, a case out of the Illinois Supreme Court earlier this year is giving the other “a/c privilege” a lot of press. While not all states recognize this privilege, the ones that do generally find that the client is the holder of the privilege and requires the client’s consent to disclose any information exchanged between the accountant and client. Illinois, however, has …
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Perusing Privileged Papers Prohibited
What to do? When reviewing discovery provided by your adversary you stumble upon a privileged document. It happens…sometimes privileged materials fall through the cracks and into the hands of opposing counsel. Do you read it, burn it, return it? According to a recent New Jersey decision, reading an inadvertently produced privileged document may be grounds for disqualification.
In this med-mal dispute, counsel for the plaintiff produced a document that was prepared by the defendant hospital during its investigation of the underlying allegations. The defendant …
Continue ReadingDeath to the Company is Death to the AC Privilege
The law in Pennsylvania, like most other jurisdictions, is clear that the attorney-client privilege survives the death of an individual. However, until recently the law was not so clear as to whether that same privilege applies to a corporation after it dissolved or “died.” Earlier this year the Pennsylvania Superior Court answered this question in Red Visions Systems v. National Real Estate Information Services, and just recently, the state Supreme Court denied allocator, leaving the Superior Court’s decision as the law of the state.…
Continue ReadingAre Communications with Experts Privileged? Maybe
In general, the attorney-client privilege protects confidential communications between an attorney and her client when made for the purpose of obtaining or providing legal advice. The AC privilege applies not only to individual clients, but also to corporations. In the case of corporations, courts have held that the AC privilege may extend to third parties hired by legal counsel when necessary for the effective consultation between the attorney and the corporate client. However, the “agent of attorney” exception to the privilege is not unlimited, and …
Continue ReadingUnintended Waiver: the “At-Issue” Exception to the AC Privilege
The attorney-client privilege, the oldest of the common law evidentiary privileges, seeks to encourage thorough and truthful communication between attorney and client. Attorneys know, however, that the privilege is not absolute. One such exception is known as the “at issue” exception, a form of implied waiver of the attorney-client and work product privileges. This form of waiver is unique because it is one which the parties, by commencing litigation that may implicate legal advice, bring on themselves. Let’s take a closer look at this often …
Continue ReadingFiduciary Exception Limits the Attorney-Client Privilege
The attorney-client privilege encourages full and frank communication between attorney and client, whether the client is an individual or a large corporation. Protecting confidential communications promotes broader public interests in the observance of law and the administration of justice. However, in shareholder derivative actions alleging harm by the corporation against stockholders, some courts have held that the corporate attorney-client privilege should be balanced with the interests of the shareholders, and that the privilege may therefore be subject to limitations. This is known as the “fiduciary …
Continue ReadingInteresting Take on the Common-Interest Privilege
Generally, we’re encouraged to share, to cooperate, and to collaborate. But, that’s not always the case for lawyers. Attorneys may shy away from these niceties because open communication may result in the unintended disclosure of non-public information during discovery. The attorney-client privilege obviously protects those communications between professional and client. The common-interest privilege goes further. The common-interest privilege protects the confidentiality of communications passing amongst attorneys for different parties, often in the context of a joint defense effort. This privilege affords all parties the opportunity …
Continue ReadingWaiving Privilege in the Cloud
The security of confidential information is an increasingly hot topic in the age of cloud-based commerce. Indeed, the all-important attorney-client privilege could be subject to waiver if confidential information is revealed to a third party. Yet, in the age of e-communications, almost all contact between attorney and client involves a third party. Consider the Dropbox program for example, which is utilized by many professionals to store client and case information in the cloud. Does the attorney-client privilege still apply given that this third-party may have …
Continue ReadingSanctions for Improper use of the AC Privilege?
The attorney-client privilege does not provide an excuse to withhold all damaging documents. Documents in an attorney’s possession are not necessarily privileged and the refusal to produce discoverable materials may be grounds for sanctions. A Massachusetts court is currently considering whether a prominent, global law firm should be sanctioned for the allegedly imprudent conduct of a former partner. An appellate panel ruled that the trial court erred in deciding that the partner acted in good faith when he invoked the work-product doctrine to conceal key …
Continue ReadingConfidentiality Provisions: From Shield to Sword?
Mediation may provide an efficient and effective path toward settlement. But, as we discussed in prior posts, settlements sometimes unhinge or litigants may have a change of heart. Despite the tools that we previously recommended to avoid this scenario, a litigant may ultimately conclude that her settlement was not the best option and turn on her attorney. Given that mediation sessions are confidential (whether by agreement or law or otherwise) and discussions during mediation cannot be utilized at trial, some attorneys on the wrong end …
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