Privilege update – two new decisions from the UK

Two recent English cases have further addressed legal privileges discussed in two previous Brief Counsels: the operation of "without prejudice" communications and the ambit of legal professional privilege.

These decisions are significant and are likely to be considered in due course by the New Zealand courts.

The cases

The cases in point are:

• Oceanbulk Shipping & Trading SA v TMT Asia Ltd & Ors [2010] UKSC 44 (27 October 2010) in which the UK Supreme Court confirmed that regard may be had to without prejudice communications in interpreting contracts, such as a settlement agreement, and
  
• R (on the application of Prudential PLC and Anor) v Special Commissioner of Income Tax and Ors [2010] EWCA Civ 1094 (13 October 2010) in which the English Court of Appeal declined to extend legal professional privilege to chartered accountants giving legal advice on tax matters.