Last Wednesday, the UK Supreme Court split on the issue of whether legal
advice privilege extended to legal advice provided by accountants.
Not exact matches
In Upjohn Co. v. United States, 6 the United States Supreme Court held that a company's attorney — client
privilege extends to company counsel's communications with employees in certain prescribed circumstances.7 Rather than providing a simple objective test, the Upjohn court instead established five factors to guide courts in determining whether the company's
privilege should
extend to counsel's communications with its employees: (1) whether the communications were made by employees at the direction of superior officers of the company for the purpose of obtaining legal
advice; (2) whether the communications contained information necessary for counsel to render legal
advice, which was not otherwise available from «control group» management; (3) whether the matters communicated were within the scope of the employee's corporate duties; (4) whether the employee knew that the communications were for the purpose of the company obtaining legal
advice; and (5) whether the communications were ordered to be kept confidential by the employee's superiors, including that the communications were considered confidential at the time and kept confidential subsequent to the interview.8 When these elements are established, courts generally consider communications between company counsel and an employee to be within the scope of the company's attorney — client
privilege.9
Under English law,
privilege will not
extend to the whole corporate entity, or even the whole group or department seeking
advice.
Our system is principle based, and looking at the principle behind solicitor - client
privilege makes it obvious why we
extend it to cover
advice provided by SLA volunteers.
The claimant, Property Alliance Group (PAG), challenged RBS's claim to
privilege over these documents, contending that the role of RBS's solicitors was not confined to the provision of legal
advice but
extended to the performance of administrative functions (for example, acting as the secretariat for the ESG and attending its meetings) for which
privilege could not be claimed.
Prudential had sought to
extend privilege to
advice on tax law given by accountants, thus allowing it to withhold that
advice from bodies such as HMRC.
Because in - house counsel often wears several hats, courts have struggled with the application of the
privilege.17 The
privilege would
extend to any legal
advice rendered, but it does not protect communications that are strictly business - related.18 Problems arise when the communication contains both legal and business
advice, and the courts take different approaches in determining whether or not to apply the
privilege.