to what extent does attorney-client privilege protect clients in a corporate context

by Prof. Clovis Blanda Sr. 3 min read

The doctrine holds that the attorney–client privilege protects communications between the multiple clients and the lawyer from disclosure to third parties, but does not protect those communications if the co-clients later become adverse to one another.

See Upjohn, 449 U.S. at 395-96 (noting that the attorney-client privilege protects only the disclosure of communications from client to attorney, not the disclosure of the underlying facts by those persons who communicated with the attorney).

Full Answer

Where does the attorney client privilege come from in law?

The Attorney-Client Privilege in a Corporate Context: Analysis and Comparison by J. D. Wilson* I. INTRODUCTION. The . attorney-client privilege provides protection for communications made by a client to his counsel in pursuit of legal advice. When the client is a natural person, application of this simple formulation of the

What is an exception to the attorney-client privilege?

The attorney-client privilege protects communications between attorneys and clients from compelled disclosure. [1] The purpose of the privilege is to encourage clients to make “full and frank” disclosures to their attorneys, who are then better able …

What types of communications are covered by the attorney-client privilege?

I. THE PRIVILEGE The attorney-client privilege is a legal device by which a client may prevent discovery of, or testimony concerning, disclosures made by the client to his attorney and any subsequent discussion thereof. While the client may be called upon to testify as to underlying facts within his knowledge, the privil-

What happens if an attorney-client privilege is waived?

Feb 05, 2021 · Though it can be challenging to determine when the attorney-client privilege applies in the context of a corporation, the privilege’s protection does extend to in-house counsel even though the ...

How does the privilege apply when the client is a corporation?

Under Upjohn, an employee's communications with a corporation's attorney are considered privileged if they meet several criteria:The communications were made for the purpose of giving or receiving legal advice.The substance of the communications related to the employee's work duties.More items...

What is attorney-client privilege and what it protects?

The attorney-client privilege is a rule that protects the confidentiality of communications between lawyers and clients. Under the rule, attorneys may not divulge their clients' secrets, nor may others force them to.

Why is attorney-client privilege so important?

The attorney-client privilege is important because it allows for honest discussion between a client and his or her attorney. Privileged communications are typically not discoverable in litigation and generally cannot be used against the client (as long as the privilege has not been waived).

Are communications with corporate counsel privileged?

Legal Advice Not all communications with a corporation's attorneys are privileged. Merely including an attorney as a recipient on a communication or inviting an attorney to a meeting does not necessarily make that communication privileged.

What communication is protected by attorney-client privilege?

Under this doctrine, a lawyer's notes, observations, thoughts and research are protected from discovery processes. The attorney-client privilege only protects the essence of the communications actually had by the client and lawyer and only extends to information given for the purpose of obtaining legal representation..

What communications are covered by the attorney-client privilege?

1. Relationship of attorney and client; 2. Communication made by the client to the attorney, or advice given by the latter to the former; 3. Communication or advice must have been made confidentially; 4.

Why the attorney-client privilege is critical to the integrity of the judicial process?

The United States Supreme Court states that the privilege exists to “encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice.Dec 13, 2016

How do you protect your privilege?

Tips for Preserving PrivilegeMark all privileged communications as “Confidential” and “Attorney-Client Privileged” or “Attorney Work Product,” as applicable. Prominent and consistent designations are critical. ... Limit the recipients of privileged information: Exclude people who are not necessary for the discussion.Aug 7, 2019

Why is privileged information important?

Key Takeaways. Privileged communication protects the confidentiality of interactions between two parties, whom the law classifies as entitled to a private, protected relationship.

Are communications between two attorneys privileged?

The attorney-client privilege protects disclosure of a confidential communication between client and lawyer.

What is considered privileged communication?

privileged communication, in law, communication between persons who have a special duty of fidelity and secrecy toward each other. Communications between attorney and client are privileged and do not have to be disclosed to the court.

How do you assert attorney-client privilege?

No matter how the attorney-client privilege is articulated, there are four basic elements necessary to establish its existence: (1) a communication; (2) made between privileged persons; (3) in confidence; (4) for the purpose of seeking, obtaining or providing legal assistance to the client.

What is attorney client privilege?

The attorney-client privilege protects communications between attorneys and clients from compelled disclosure. [1] The purpose of the privilege is to encourage clients to make “full and frank” disclosures to their attorneys, who are then better able to provide candid advice to their clients. [2] “Open communication assists lawyers in rendering legal advice, not only to represent their clients in ongoing litigation, but also to prevent litigation by advising clients to conform their conduct to the law and by addressing legal concerns that may inhibit clients from engaging in otherwise lawful and socially beneficial activities.” [3]

What is the work product doctrine?

“The work-product doctrine protects the enterprise—either analytical or entrepreneurial—by a party or by the party’s agent.” [10] The work product privilege applies to work “prepared in anticipation of litigation or for trial by or for another party or by or for that other party’s representative (including an attorney, consultant, surety, indemnitor, insurer or agent).” [11] The “litigation” need not have been commenced at the time the documents were prepared. [12] Moreover, the “litigation” need not be the proceeding in which the doctrine is asserted. [13]

Why did we not have to test our analysis in court?

We were fortunate that we did not have to test our analysis in court so as to protect our privileged information. In anticipation of a dispute over this privileged information, we took precautionary steps to help show a court that the information was privileged.

What is the per-se waiver approach?

In the per-se waiver approach, courts find that any disclosure of otherwise privileged communications by a corporate officer waives the corporation’s attorney-client privilege. The case-by-case approach, however, rejects a per-se approach to waiver, instead of examining the facts of each case before determining the outcome.

Does the Sixth Circuit have a rule on corporate privilege?

Ultimately, not all circuits adhere to one approach or the other. Notably, the Sixth Circuit has not yet ruled on this issue. Because of the failure of the circuits to adopt a universal approach to a waiver of corporate privilege, corporate officers and directors must be particularly mindful when communicating with third-parties. Even though courts concede that corporations themselves hold the attorney-client privilege, and management can speak for the corporate entity, it is not always clear when corporate privilege has been waived inadvertently. Until a uniform rule is implemented, it is important that corporate counsel monitor corporate officers to ensure that any inadvertent disclosures do not waive corporate privilege.

What is the attorney-client privilege?

The Attorney-Client Privilege. The attorney-client privilege may protect a communication from disclosure if five fundamental elements exist: (1) an attorney; (2) a client; (3) a communication; (4) a confidentiality that was anticipated and preserved; and (5) legal advice or assistance (as opposed to business or personal advice) ...

What is an in house counsel?

In-house counsel is often called upon to provide input beyond a legal opinion. They often fill senior leadership roles within corporations and engage in day-to-day business decision making outside of their role as an attorney.

What is corporate email?

Corporate emails often involve multiple people with long chains of multiple communications and attachments. In making a privilege determination, one should be careful to note any third parties included on an email string who might break the privilege.

Joint–Client Doctrine

The joint–client doctrine applies to situations where one lawyer, or one law firm, represents two or more clients on a matter of common interest.

Lawyer–Client Relationship?

The privilege issue in Hinerman, therefore, hinged on whether Lawyer Adam had a lawyer–client relationship with Stuart such that Eric and Stuart were Adam’s joint clients. If not, the privilege applies; if so, no privilege exists.

I. Who Holds The Privilege?

  • In the seminal case, Upjohn Co. v. United States,the Supreme Court determined that the attorney-client privilege attaches not just to individuals, but to corporations as well. Thus, as the client, the corporation, not management, holds the attorney-client privilege. While it is undisputed that corporations can hold these privileges, the corporation itself is a legal fiction: it lacks an ability t…
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II. Who Speaks For The Corporation?

  • The Supreme Court addressed the question of who may waive corporate privilege in Commodity Futures Trading Commission v. Weintrab.There, the Court found that “the power to waive the corporate attorney-client privilege rests with the corporation’s management and is normally exercised by its officers and directors.”While most circuits accept that corporate management h…
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III. When May Inadvertent Waiver occur?

  • Courts follow two predominant approaches when analyzing corporate waiver: the per-se waiver approach, and the case-by-case approach. In the per-se waiver approach, courts find that any disclosure of otherwise privileged communications by a corporate officer waives the corporation’s attorney-client privilege. The case-by-case approach, however, rejects a per-se approach to waiv…
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IV. Conclusion

  • Ultimately, not all circuits adhere to one approach or the other. Notably, the Sixth Circuit has not yet ruled on this issue. Because of the failure of the circuits to adopt a universal approach to a waiver of corporate privilege, corporate officers and directors must be particularly mindful when communicating with third-parties. Even though courts concede that corporations themselves hol…
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