Corporate Litigation: Directors' Exercise of the Corporate Privilege
In his column on Corporate Litigation published in the New York Law Journal, Joseph M. McLaughlin assesses recent case law exploring the boundaries of the right of corporate directors to obtain the corporation’s attorney-client privileged information. The Appellate Division, First Department, ruled last month in Barasch v. Williams Real Estate that a corporate director and shareholder whose interests are adverse to those of the corporation is not entitled to obtain the corporation's attorney-client privileged communications concerning that director's rights. Relatedly, courts continue to debate whether former directors are entitled to obtain privileged communications between the corporation and its lawyers made during their tenure on the board in order to support a post-tenure claim or defense.