The Significance Of Recent Lawyer-Client Privilege Decisions

Courts rendered a number of significant rulings concerning lawyer-client privilege in 2007. Privilege decisions in the context of related corporations, special committees of boards of directors, and competition investigations overseas led to important developments relating to the scope, preservation and waiver of the privilege. Here is a summary of three decisions made by U.S. and European courts that have special import for businesses in 2008 and beyond.

In re Teleglobe Communications Corp.: Scope of Privilege Among Corporate Family Members

Teleglobe involved a dispute within a corporate family. Teleglobe’s U.S. subsidiaries (the Debtors) went bankrupt. Their creditors brought a claim on behalf of the Debtors against BCE, Inc. – Teleglobe’s former parent – alleging that BCE had an obligation to fund Teleglobe’s U.S. operations and should not have allowed the Debtors to fail. During discovery, the