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Keywords

attorneylawyersubpoenaappealtrialtax lawgrand juryattorney-client privilege

attorneylawyerappealtax lawappellantattorney-client privilege

Related Cases

U.S. v. Kovel, 296 F.2d 918, 96 A.L.R.2d 116, 9 A.F.T.R.2d 366, 62-1 USTC P 9111

Facts

Kovel, a former Internal Revenue agent and accountant, was employed by a law firm specializing in tax law. He was subpoenaed to testify before a grand jury investigating alleged tax violations by a client of the firm. Kovel claimed privilege regarding communications from the client, but the trial judge ruled that the privilege did not apply to him as a non-lawyer. Kovel was held in contempt for refusing to answer questions and was sentenced to a year in prison.

Kovel is a former Internal Revenue agent having accounting skills. Since 1943 he has been employed by Kamerman & Kamerman, a law firm specializing in tax law.

Issue

Does the attorney-client privilege extend to communications made by a client to an accountant employed by an attorney?

Decision under what circumstances, if any, the attorney-client privilege may include a communication to a nonlawyer by the lawyer's client is the resultant of two conflicting forces.

Rule

The attorney-client privilege can extend to communications made to non-lawyer employees of an attorney, including accountants, when those communications are made for the purpose of obtaining legal advice.

Analysis

The court analyzed the application of the attorney-client privilege in the context of Kovel's employment as an accountant by the law firm. It recognized that while the privilege traditionally applies to communications between a client and their attorney, it can also extend to communications with non-lawyer employees who are acting as agents of the attorney in the context of providing legal advice. The court noted that the record was insufficient to determine whether the privilege applied in Kovel's case due to the lack of evidence regarding the nature of the communications.

The application of these principles here is more difficult than it ought be in future cases, because the extreme positions taken both by appellant and by the Government, the latter's being shared by the judge, resulted in a record that does not tell us how Hopps came to be communicating with Kovel rather than with Kamerman.

Conclusion

The court vacated the judgment against Kovel and remanded the case for further proceedings to determine the circumstances under which the communications occurred and whether the privilege existed.

The judgment is vacated and the cause remanded for further proceedings consistent with this opinion.

Who won?

Kovel prevailed in the appeal as the court vacated the contempt judgment against him, recognizing the need for further examination of the privilege issue.

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