Internal Investigation Documents Are Protected From Disclosure In False Claims Act Case, D.C. Circuit Holds

Reversing a lower court decision, the D.C. Circuit recently concluded – for a second time – that certain internal audit documents are protected from disclosure by the attorney-client communication and work production privileges.  On August 11, 2015, the D.C. Circuit issued a second writ of mandamus regarding the same group of documents, internal reports which the plaintiff/whistleblower sought in connection with his False Claims Act suit alleging kickbacks and overbilling related to Iraq War subcontracting.  The appellate court reversed the district court's order requiring KBR, Inc. to produce the documents, holding that permitting disclosure would "inject[] uncertainty into application of attorney-client privilege and work-product protection to internal investigations."