The U.S. Court of Appeals for the Fifth Circuit found that a licensor did not establish an attorney-client relationship with in-house counsel, and thus could not assert privilege. In affirming summary judgment in an alleged fraud case, the appeals court found that a licensor did not provide enough evidence to show that he had established an attorney-client relationship with two in-house attorneys of a parent company.

The case serves as a reminder that in-house attorneys' clients are the company itself, and they do not represent individual employees unless otherwise stated, said Michelle Reed, a partner at Akin Gump Strauss Hauer & Feld in Dallas, commenting on the case.