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Whistleblower suits by in-house counsel not barred by privilege
The Fifth Circuit has ruled that employers cannot claim attorney-client privilege to exclude evidence from disclosure in whistleblower suits brought by in-house counsel. Willy v. Administrative Review Board, U.S. Department of Labor, No. 04-60347 (August 24).
The court stated that: “[t]he case law amply demonstrates the narrower proposition that the attorney-client privilege only prohibits a party from simultaneously using confidential information as both a shield and a sword. Stated differently, the 'shield and sword' analogy is conjunctive: it does not stand broadly for the proposition that an attorney may never use confidential information offensively. In other words, when a party entitled to claim the attorney-client privilege uses confidential information against his adversary (the sword), he implicitly waives its use protectively (the shield) under that privilege.”
Out-of-state corps must also pay NJ business taxes
The Superior Court of New Jersey, Appellate Division has held that out-of-state corporations with no physical presence or employees in New Jersey, but that draw revenue from affiliates located there, are subject to the state's Corporate Business Tax. Lanco Inc. v. Director, Division of Taxation, No. A-3285-03T1 (August 24).
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