What Investors Should Understand About Attorney-Client Privilege

Attorney-client privilege protects an attorney from having to provide information to a plaintiff in a lawsuit or to a government agency. However, there are situations where it doesn’t apply. If a third party is present during discussions, the privilege becomes compromised. It’s possible to extend attorney-client privilege to professionals hired by the attorney, but generally speaking, outside parties should be excluded from sensitive conversations. It’s also important to remember that only legal advice is subject to attorney-client privilege. This is especially relevant to operations that use in-house legal counsel that also offers business advice.

Key Takeaways:

  • With a few exceptions, an attorney cannot be compelled to provide privileged information to a plaintiff or government agency.
  • Attorney-client privilege is compromised if a third party is also present at the conversation.
  • Non-legal advice isn’t privileged, which can be tricky if your in-house legal counsel also gives you business advice.

“When it comes to going over your business plans and tax structure with your lawyer, you need to understand what information is privileged and what is not.”

Read more: https://www.biggerpockets.com/blog/attorney-client-privilege-business-owners