The California Supreme Court reversed a decision of the court of appeal. The court held that the trial court erred in compelling the disclosure of certain redacted portions of a privileged communication between counsel and client. The court also held that the trial court erred in compelling in camera disclosure of the communication in order to ascertain which portions of the letter, if any, were exempt from privilege.
Corporate counsel for Costco Wholesale Corporation retained the law firm of Sheppard Mullin to undertake comprehensive factual investigation and legal analysis regarding the classification of managers within Costco Warehouses. Costco sought to ascertain where managers then classified as exempt employees should instead be classified as non-exempt employees.
