Stretching The Umbrella: 5 Tips For Preserving Privilege In A Complex Transaction

Good communication within a deal team can be the linchpin of a successful transaction. Equally important, however, is the need to preserve privilege and ensure that sensitive information is insulated from any subsequent litigation. Balancing these two demands in a complex and fast moving transaction can be cumbersome, complicated and fraught with risk. Fortunately, recent developments in the common law have shed some light on this issue and provide useful guidance on how best to manage sensitive communications within a deal team.

Solicitor-client privilege exists as a common law exception to the evidentiary rules that compel disclosure during a litigation dispute. The law recognizes the need to protect the relationship between the lawyer and client from any apprehension that candid discussions could be disclosed and used to the client's detriment. Thus, the common law grants clients a protective right over any communication passing between them and their