Wednesday, June 18, 2008
The Unincorporated Business Law Prof Blog, and that is a mouthful (or a typeful), raised the interesting question in this recent post, per Donald Scotten (Lect., Southern Cal). "The federal district court in Nevada recently addressed an issue of first impression involving LLCs and the attorney-client privilege. ...whether an LLC should be treated as a partnership or corporation for purposes of the attorney-client privilege. The court had to make this determination in order to determine 'who the client is' in an LLC. After reviewing several cases that the court pointed out were distinguishable, the court determined that LLCs should be treated as corporations for purposes of the attorney-client privilege."
Of course, treating it as a corporation raised its own issues of "who is the client," as the law and ethics on that is a very mixed bag. This court concluded that only the LLC entity was the client for privilege purposes, such "that the LLC properly asserted the privilege against the former manager in refusing to produce documents in discovery." Scotten has the WL cite for the opinion.