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20 September 2007
Issue: 7289 / Categories: Legal News , EU , Profession
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Bad news for in-house lawyers

News

Legal professional privilege does not apply to communications made between an in-house lawyer and employer clients, the European Court of First Instance has ruled.

The decision in Akzo Nobel Chemicals Ltd v European Commission has been condemned by the profession, which says it will harm the interests of improving business practice.

Law Society chief executive Des Hudson says: “It is an outrageous suggestion that the advice given by solicitors, who are bound by high professional standards, should not be afforded the same level of protection merely because of their employed status. This inequality between members of the same profession is unsustainable and it is disappointing that the court did not set this straight.”

He adds that the decision contradicts the European Commission’s ambition to increase the culture of compliance within European companies.
“Unrestricted access to in-house counsel provides informed and cost effective legal assistance in ensuring such anti-trust compliance,” he says.
Michael Frisby, dispute resolution partner at Stevens & Bolton, says: “As a result of this decision, the widespread practice of companies sourcing competition law advice externally is likely to continue for the foreseeable future.”

The Court of First Instance followed the European Court of Justice’s ruling in AM & S Europe Ltd v EC Commission and held that legal privilege protection only applied to the extent that the lawyer is independent, ie not bound to his client by a relationship of employment.

The case arose after the Commission carried out a dawn raid at the company’s UK premises and seized and made copies of numerous documents. The court rejected the claimant’s contention that legal professional privilege covered documents—in this case e-mails—exchanged between a member of the legal department of Akzo Nobel and the general manager of its subsidiary, Akcros Chemicals.

Issue: 7289 / Categories: Legal News , EU , Profession
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MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
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Non-molestation orders are meant to be the frontline defence against domestic abuse, yet their enforcement often falls short. Writing in NLJ this week, Jeni Kavanagh, Jessica Mortimer and Oliver Kavanagh analyse why the criminalisation of breach has failed to deliver consistent protection
Assisted dying remains one of the most fraught fault lines in English law, where compassion and criminal liability sit uncomfortably close. Writing in NLJ this week, Julie Gowland and Barny Croft of Birketts examine how acts motivated by care—booking travel, completing paperwork, or offering emotional support—can still fall within the wide reach of the Suicide Act 1961
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