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Keeping The Attorney-Client Privilege In-House
Part One of Two
The role of in-house counsel has increased and diversified. A reason for this is greater use of in-house counsel to control outside legal fees. Minimizing fees is important for small and mid-size businesses and has proven economically efficient for larger businesses. In-house counsel are more familiar with the business, easily accessible, and form key relationships with employees. In-house counsel roles have evolved from straightforward legal adviser to business adviser, human resource manager, and much more. (Chad R. Brown & American Corporate Counsel, In-House Counsel Responsibilities in the Post-Enron Environment, 21 No. 5 ACCA Docket 92, 93 (2003) (citing Janet B. Wright, The Practice Setting for You?, Corporate Counsel 18, No. 1, GPSolo 45, 45 (2001)).
Attorney-client privilege should technically apply equally to in-house and outside counsel. However, it has been narrowed in the context of in-house counsel, partly due to the fear that mere participation of in-house counsel will be used to seal off disclosure of information about the basis for business transactions simply by funneling their communications through an attorney.
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