A recent decision from the Court of Session (Inner House) serves
as a timely reminder that if you wish to claim legal professional
privilege in respect of advice received, you should be wary about
disclosing that advice in any circumstances, as you may be found to
have waived privilege.
The Facts
Scottish Lion was an insurance company which, as part of their
business, provided occurrence based insurance relating to risks
including exposure to asbestos, pollution and health hazards -
losses which may not become evident until long after the exposure
to which they relate. After failing to write new business,
the company went into run-off and, although solvent, sought to have
the court sanction a proposed scheme of arrangement under section
889 of the Companies Act 2006. This cut off scheme proposes
the solvent winding up of the company, resulting in loss of cover
for its policy holders in exchange for amounts calculated by
reference to the estimated value of their
