A final consideration is that the scope
of legal advice privilege applies so long as in - house lawyers act in a legal rather than an executive capacity.
The interview scenario is clearly not one to
which legal advice privilege will apply, therefore a company may be forced to rely on litigation privilege in relation to these documents.
DAC Beachcroft's D&O and FI newsletter features topical issues for our global clients and contacts The limits of UK
legal advice privilege in corporate investigations Developments...
In this video blog, I explore some common issues that arise when a party tries to rely
on legal advice privilege in some way, and the opposing party suggests — as a result — that the privilege was waived because the client's «state of mind» came in issue.
Following from the definition of client in TR5 Hildyard J commented in obiter that in a corporate context it may be that «only individuals... constituting part of the directing mind and will of the corporation can be treated for the purpose of
legal advice privilege as being... the client».
At the same time as the justices in Re A were briefly deliberating, seven justices (Lords Neuberger, Clarke and Reed were common to both constitutions) were addressing the subject of privilege in the context of legal advice (R (Prudential plc and anor) v Special Commissioner of Income Tax [2013] UKSC 1:
legal advice privilege does not apply to advice on law given by accountants).
Notably,
legal advice privilege only extends to communications made primarily for the purpose of giving or receiving legal advice, and does not attach to documents that existed prior to the lawyer — client relationship.
RBS
claimed legal advice privilege in «transcripts, notes or other records» of interviews conducted by or on behalf of the bank with its employees and ex-employees as part of internal investigations after the rights issue, but before litigation was contemplated.
In this sense, there is much scope to muddy the waters regarding in which capacity in - house lawyers are acting at any given moment, and any work dealing with generic business, management, administration, strategic or commercial advice that is not legal in nature would therefore fail to attract
legal advice privilege under UK law.
The aim of this article is, from a UK law perspective, to analyse some of the main issues for in - house lawyers
regarding legal advice privilege, which applies to confidential communications (written or oral) passed between a lawyer and his / her client that come into existence for the purpose of giving or receiving legal advice.
For the purpose of
assessing legal advice privilege, UK case law has established that the «client» will not encompass all of a company's employees, or even the whole department or division seeking the legal advice, but instead a core «client team».
Her right to confidentiality would have been unassailable if legal professional privilege applied (
ie legal advice privilege: R v Derby Magistrates» Court exp B [1996] 1 AC 487; [1996] 1 FLR 513).
Public interest immunity and
legal advice privilege deprive a court of relevant evidence, the first because it is held, in the individual case, to serve the pulic interest; in the second because a private interest in obtaining legal advice confidentially is said to justify suppression of relevant evidence.
While legal advice privilege is absolute, confidentiality is wider, and, by the same token, can occasionally be overridden by another supervening right or express statutory intent (see eg R v Special Commissioner and Another, Ex P Morgan Grenfell & Co Ltd [2003] 1 AC 563, [2002] UKHL 21).
Legal advice privilege persists even after the lawyer stops acting for the client and the client's successors in title continue to enjoy the privilege unless waived.
Along with the welter of eye - catching headlines naming politically exposed person's there has been no discussion about the issues of privacy, confidentiality and
potential legal advice privilege for those individuals who have used perfectly lawful structures for a proper purpose.
Endorsement of
legal advice privilege Departing in one significant respect from the High Court judgment, the Court of Appeal disagreed with the judge's comment that, in order to level the playing field between clients of lawyers and accountants as regards disclosure of legal advice, it might be appropriate to restrict or remove LPP for legal advice given by lawyers outside the litigation context.
Instead, the Court of Appeal held that communications made by the client company's employees for the dominant purpose of seeking legal advice were covered
by legal advice privilege.
The Claimants relied on the leading authority
for legal advice privilege, Three Rivers (No. 5), in which the Court of Appeal had concluded that, in a corporate context, information gathered from an employee is no different from information obtained from third parties, even if the information is collected by or in order to be shown to a solicitor to enable fully informed advice to be given to that solicitor's client.
In fact, EU law has found that communications between in - house lawyers and a company's staff don't warrant the protection of
legal advice privilege as in - house lawyers are viewed as «insufficiently independent — structurally, hierarchically, and functionally» from their employers.
Legal advice privilege arises over confidential communications between lawyer and client that are created for the sole or dominant purpose of giving or seeking legal advice, even if there is no actual or potential litigation.
Further, it confirmed that
legal advice privilege did not extend to information provided by employees and ex-employees to or for the purpose of being placed before a lawyer.
Requests for legal advice, communications with third parties to obtain evidence and internal communications related to legal advice are all protected — note, however, that where an organisation instructs its lawyers, the «client» for the purposes of
asserting legal advice privilege will not be the whole organisation, rather only those tasked with obtaining and receiving the legal advice; documents generated by others will not be privileged.
Legal advice privilege applies whether or not litigation is pending and applies to communications between a lawyer and client which come into existence for the purpose of giving or receiving legal advice within a legal context.
New non-financial reporting requirements for businesses; A new financial court for England;
Legal advice privilege in Hong Kong — what in - house counsel needs to know; Conferences and events
The Court therefore upheld the Three Rivers decision and RBS's claim to the protection
of legal advice privilege for the interview notes failed, as did its claim for privilege to extend to its lawyers» working papers.
They are
legal advice privilege (documents or communications that are confidential when obtaining legal advice), litigation privilege (documents prepared for ongoing or anticipated litigation), and lawyer's brief privilege (the lawyer's work product in preparing legal advice or litigation).
Gaul found the case related mainly to
the legal advice privilege and then referred to B.C. Court of Appeal 2003 ruling in British Columbia (Securities Commission) v. C.W.M to determine the difference between solicitor - privilege documents and those that were merely confidential, stating that only those documents that were confidential and created for the purpose of obtaining the legal advice carried privilege.
As a result, there are two heads of legal professional privilege:
legal advice privilege and litigation privilege.
Therefore,
legal advice privilege is more narrowly interpreted.
In Hong Kong,
legal advice privilege applies to confidential communications between a lawyer and his or her client where the dominant purpose of the communications is to seek or give legal advice.