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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

Laytons ETL—Maximilian Kraitt

Laytons ETL—Maximilian Kraitt

Commercial firm strengthens real estate disputes team with associate hire

Switalskis—three appointments

Switalskis—three appointments

Firm appoints three directors to board

Browne Jacobson—seven promotions

Browne Jacobson—seven promotions

Six promoted to partner and one to legal director across UK and Ireland offices

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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