The world of litigation, like most businesses, is primarily driven by bottom lines, profit margins, and cost savings. This has always been true, although these tenets are forced into the foreground for many law firms in the wake of the COVID-19 pandemic. Nevertheless, before COVID-19, law firms and their clients were finding ways to cut costs by utilizing outside vendors and services in the litigation process. These services range from third-party billing administrators to public relations firms guiding multinational companies through media firestorms.
The risks associated with utilizing these third parties, however can be lost on many a busy litigation attorney. Indeed, while virtually all attorneys recognize that oversharing confidential documentation with third parties can, and often will, jeopardize the sanctity of the attorney-client privilege, it is easy to forget how fragile the privilege is. Although the exact wording can vary by jurisdiction, the Restatement of the Law Governing Lawyers aptly summarizes the waiver test for the attorney-client privilege: waiver occurs “if the client, the client’s lawyer, or another authorized agent of the client voluntarily discloses the communication in a nonprivileged way.” Restatement (third) of the law governing lawyers Section 79 (2000).
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