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Privilege European Union Patrick Doris and Steve Melrose Gibson, Dunn & Crutcher Published November 2016 Privilege – European Union Privilege European Union Patrick Doris and Steve Melrose Gibson, Dunn & Crutcher Scope of the privilege with external lawyers, qualified to practice in a jurisdiction of the European Economic Area (EEA), as well as to documents 1 Are communications between an attorney and client prepared exclusively for the purpose of seeking their advice. The protected? Under what circumstances? privilege applies to written communications exchanged after an investigation has commenced and those exchanged earlier, The laws protecting communications between lawyers and provided they have a relationship with the subject matter of their clients are not uniform across the 28 member states of the the investigation. European Union (EU). Each member state has its own body of The purpose of the privilege is to guarantee the full exercise laws that protects, to different degrees, communications between of individuals’ rights of defence and to safeguard the requirement lawyers and their clients. that any person must be able, without constraint, to consult his EU legal professional privilege has developed in a particular lawyer. See Akzo Nobel Chemicals v Commission [C-550/07 P]. field of EU law, namely EU competition law, in the context of To a practitioner accustomed to privilege laws in common investigations carried out by the competent EU competition law law jurisdictions, the protection afforded by EU law to legal authority, the European Commission (the Commission) into professional privilege may appear rather limited, and the case law violations of the provisions of the Treaty on the Functioning of comparatively thin. In fact, it was not until 1982 that the concept the European Union prohibiting anticompetitive agreements of legal professional privilege was recognised in EU law and since and abuse of a dominant position (although, in principle, the then the number of cases that have developed the scope and privilege could protect communications relating to other proceed- nature of the privilege has been small. It follows that nuances and ings brought by the Commission in which the rights of defence details that have been argued at length over time in common law arise). These rules are relevant in circumstances where a party is or jurisdictions and upon which there is a rich body of case law to may be investigated by the Commission, or indeed any national draw on, are in many cases unaddressed in the EU jurisprudence. competition enforcement authority exercising powers on behalf of the Commission, and in subsequent litigation before the Court 2 Does the privilege only protect legal advice? Does it of Justice of the European Union. In cases where a party is or may also protect non-legal communications between an be investigated by a national competition authority, national legal attorney and client, such as business advice? professional privilege laws will typically apply. The competent EU court, the Court of Justice of the The privilege is limited to advice provided by an external lawyer European Union (which is composed of two courts for purposes for the purpose of exercising the client’s rights of defence, and relevant to competition investigations – the General Court, which any advice relating to the subject matter of the investigation. hears actions for annulment of European Commission decisions, Non-legal communications, for example, containing business and the Court of Justice, which hears appeals from the General advice, are not protected.In the case of communications that Court, among other competencies), has said that legal profes- include a mix of legal and business advice, only those sections of sional privilege represents a limitation on the EC’s investigatory the communication that contain the legal advice are protected. powers and that those powers are exercised for combating the most serious infringements of EU competition law, including 3 Is a distinction made between legal advice related to price-fixing cartels. As such the privilege has been defined nar- litigation and other legal advice? rowly, and protects a significantly smaller range of communica- tions than under most US or English privilege laws. No such distinction is made in the relevant case law. EU legal EU legal professional privilege protects written communica- professional privilege applies to communications made for the tions between lawyers and clients for the purpose of exercising purpose of exercising the rights of defence in the context of a the rights of defence in the context of Commission competition Commission competition investigation, and any advice relating to investigations. The privilege applies only to communications the subject matter of the investigation. 2 Privilege – European Union 4 What kinds of documents are protected by the by the privilege. There is limited case law of the Court of Justice privilege? Does it cover documents that were prepared considering the types of circumstances in which documents in anticipation of an attorney-client communication? over which privilege may be asserted may be considered not to be confidential. EU legal professional privilege can protect the following types of written documents: 6 Is the underlying information privileged if it can be (i) Communications between a lawyer and client, provided that obtained from a non-privileged source? (i) such communications are made for the purposes of the exercise of the client’s rights of defence and (ii) they originate EU legal professional privilege protects communications between from an external EEA qualified lawyer, which are exchanged EEA qualified external lawyers and their clients, notes or sum- after the initiation of an investigative procedure or to earlier maries of such communications, and documents prepared for the written communications which have a relationship to the exclusive purpose of consulting with such lawyers. subject matter of that procedure; Underlying information that can be obtained from a non- (ii) Internal notes circulated within a client that are confined privileged source is not protected by the privilege. Moreover, to reporting on the content of a communication caught by underlying information will not become protected by the privi- (i) above; lege simply because it was communicated to an EEA qualified external lawyer. Caution must be exercised as any comments or observations regarding the advice included in the note by its author will not be 7 Are there any notable exceptions or caveats to the protected by the privilege. privilege? (iii) Documents prepared by the client exclusively for the purpose of seeking legal advice from an external EEA qualified lawyer EU legal professional privilege is narrowly defined. It is not an in exercise of the rights of the defence, even if they were not unqualified or absolute right and three points are notable here: exchanged with the lawyer or were not created for the purpose First, EU legal professional privilege is confined to communi- of being sent physically to the lawyer. cations between a client and its external lawyers. Communications with in-house lawyers are not protected by the privilege, on the This is a narrow category of documents and the exclusivity test is basis that in-house lawyers are not sufficiently independent from closely observed. their employers to render independent advice. This is the case Here the court will consider a number of factors to determine even where the in-house lawyer is admitted to a national bar or the purpose for which the documents were prepared, includ- law society and holds a valid licence to practise. ing for example whether the document itself hints at whether it Second, the privilege only applies to communications with has been prepared for the exclusive purpose of gathering facts or external lawyers admitted to the bar of an EEA state. Therefore, material for legal advice (eg, because it is addressed to a lawyer, communications between a client based in a member state and or is marked as being subject to privilege), as well as the wider its external lawyer admitted to practise only in New York would context (eg, who the author is, or the circumstances in which the not be protected by EU legal professional privilege and therefore document was found). within the scope of material obtainable by the Commission in a The following will not be protected by EU legal professional competition investigation. privilege: legal advice of a general nature (ie, not connected to the Third, the privilege will only attach to documents that have client’s rights of defence or the subject matter of the investiga- been prepared for the purposes and in the interests of the client’s tion), internal company communications with an in-house lawyer, rights of defence, and in the context of advice relating to the communications between a company and its external lawyer Commission investigation or subject matter of the investigation. qualified only in the US, internal reports or documents that The result is that the following will not, without more, be were sent to a lawyer but that were not created for the exclusive privileged under EU law: purpose of seeking legal advice and file notes of meetings with • advice given by a US qualified external lawyer to its client lawyers, unless those notes record advice received from an EEA based in Europe; qualified external lawyer. • advice given by a US or EU qualified in-house lawyer to their company; and 5 To what extent must the communication be • communications between a company and its in-house lawyer confidential? Who can be privy to the communication based in Europe, even if they relate to the rights of defence or without breaking privilege? the subject-matter of the investigation. The case that established that the European Court of Justice 8 Are there laws unrelated to privilege that may protect would protect legal professional privilege in Commission inves- certain communications between attorney and client? tigations was the 1982 case of AM & S v Commission [1982] ECR 1575.
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