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Ninth Circuit Reverses Attorney-Client Ruling, But Lawyers Should Not Breathe Easy
In my article “Who's Your Client?” in the August 2009 issue of this newsletter, I described a district court decision in the Broadcom case finding that the law firm Irell & Manella had improperly disclosed to the government confidential information it gained from an executive it was representing along with his corporate employer. Although the Ninth Circuit reversed the district court's ruling on Sept. 30, its decision highlights the need for continuing vigilance about dual representation.
The Ninth Circuit held that the district court had incorrectly relied on California state law, which presumes the confidentiality of attorney-client communications. Instead, the panel applied federal common law, which puts the burden on the executive to prove that the communications were privileged. Noting that the executive was himself involved in the internal investigation, the circuit court found that he knew Irell was sharing with the company's outside auditor information that company lawyers had obtained from him. United States v. Ruehle, No. 09-50161, 2009 U.S. Dist. LEXIS 21450, at *27 (9th Cir. Sept. 30, 2009).
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