Because state law applies at the time a transaction is negotiated, the parties might assume — reasonably so — that state privilege law will govern communications with their attorneys and
State Attorney-Client Privilege Rule Incorporated into Federal Law
<b><i>Delaware Bankruptcy Court Protects Communications with Financial Professionals Originating in Delaware</b></i><p>Because state law applies at the time a transaction is negotiated, the parties might assume — reasonably so — that state privilege law will govern communications with their attorneys and financial professionals. But what happens if, years later, a suit is filed in federal court and brings claims under federal law? Does state privilege law still apply?

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