D.C. Circuit Confirms Applicability of Attorney-Client Privilege to Internal Investigations

Barko v. Halliburton, a March 2014 decision by the U.S. District Court for the District of Columbia, sent shock waves through the ranks of corporate counsel: The District Court ruled that an internal investigation was not privileged because it would have been conducted regardless of whether the company was also seeking legal advice.  In an important reaffirmation of the strength and breadth of the attorney-client privilege, the U.S. Court of Appeals for the D.C. Circuit recently vacated the District Court’s decision, ruling that the privilege was available so long as seeking legal advice was a “significant” purpose – even if not the sole purpose – of the internal investigation.  This decision coincides with a Delaware Supreme Court ruling, discussed above in this issue of the Anti-Corruption Report.  That court expressly adopted an exception to the attorney-client privilege for a corporate shareholder who shows “good cause” for obtaining the corporation’s privileged materials (in that case, Walmart).  See also the Anti-Corruption Report’s series on conducting internal investigations: “Ten Factors to Consider at the Outset (Part One of Two)” (Dec. 18, 2013); and “Developing and Implementing the Investigation Plan (Part Two of Two)” (Jan. 8, 2014). 

To read the full article

Continue reading your article with an ACR subscription.