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Keywords

tortdefendantattorneyinjunctionhearingmotiontrade secretattorney-client privilege
tortdefendantattorneyinjunctionhearingmotiontrade secretattorney-client privilege

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Safety Today, Inc. v. Roy, Not Reported in F.Supp.2d, 2013 WL 5597065

Facts

Safety Today, Inc. alleged that former employees Susan Roy and Jeanne Brady misappropriated trade secrets and confidential information when they left the company to work for Safeware. A temporary restraining order was issued against the defendants, but during a preliminary injunction hearing, the court found insufficient evidence that the defendants still possessed any proprietary information. Following the issuance of a letter by Safety Today to its customers, which the defendants claimed misrepresented the court's order, the defendants filed a motion to compel the production of documents related to the letter, which Safety Today withheld on the grounds of attorney-client privilege.

Safety Today, Inc. alleged that former employees Susan Roy and Jeanne Brady misappropriated trade secrets and confidential information when they left the company to work for Safeware. A temporary restraining order was issued against the defendants, but during a preliminary injunction hearing, the court found insufficient evidence that the defendants still possessed any proprietary information. Following the issuance of a letter by Safety Today to its customers, which the defendants claimed misrepresented the court's order, the defendants filed a motion to compel the production of documents related to the letter, which Safety Today withheld on the grounds of attorney-client privilege.

Issue

Whether the crime-fraud exception to the attorney-client privilege applies to the documents withheld by Safety Today, allowing for their disclosure in the context of the defendants' claims of tortious interference and defamation.

Whether the crime-fraud exception to the attorney-client privilege applies to the documents withheld by Safety Today, allowing for their disclosure in the context of the defendants' claims of tortious interference and defamation.

Rule

The crime-fraud exception to the attorney-client privilege applies when the communications were intended to facilitate or conceal a crime or fraud. Courts analyze wrongful conduct on a case-by-case basis to determine if it involves malicious intent and deliberate falsehood.

The crime-fraud exception to the attorney-client privilege applies when the communications were intended to facilitate or conceal a crime or fraud. Courts analyze wrongful conduct on a case-by-case basis to determine if it involves malicious intent and deliberate falsehood.

Analysis

The court determined that the defendants had sufficiently alleged tortious interference with business relations, which involves intentional misrepresentation. The language of the letter sent by Safety Today could be interpreted as a misstatement of the court's order, and the context suggested an intent to harm the defendants' business relationships. This warranted an in camera review of the withheld documents to assess whether they were protected by attorney-client privilege.

The court determined that the defendants had sufficiently alleged tortious interference with business relations, which involves intentional misrepresentation. The language of the letter sent by Safety Today could be interpreted as a misstatement of the court's order, and the context suggested an intent to harm the defendants' business relationships. This warranted an in camera review of the withheld documents to assess whether they were protected by attorney-client privilege.

Conclusion

The court granted the defendants' motion to compel, ordering Safety Today to produce the withheld documents for in camera inspection to determine if the crime-fraud exception applied.

The court granted the defendants' motion to compel, ordering Safety Today to produce the withheld documents for in camera inspection to determine if the crime-fraud exception applied.

Who won?

Defendants Susan Roy and Jeanne Brady prevailed in their motion to compel, as the court found sufficient grounds to review the withheld documents under the crime-fraud exception.

Defendants Susan Roy and Jeanne Brady prevailed in their motion to compel, as the court found sufficient grounds to review the withheld documents under the crime-fraud exception.

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