In-House Lawyer’s Attorney-Client Privilege Reinstated

A three-judge panel of the D.C. Circuit Court of Appeals has rejected trial court rulings that a company had waived attorney-client privilege by permitting an in-house lawyer to review internal investigation documents before his deposition, and by referring to the outcome of the investigation in a motion for summary judgment. A whistleblower is suing KBR under the False Claims Act, but for the second time in 14 months, the appeals court said KBR does not have to turn over those internal investigation documents related to kickback allegations. In this week’s opinion, the panel of judges said the rulings had the “fundamental flaw” of creating uncertainty about the application of attorney-client and work-product privilege to internal investigations.