Delta Financial Corp. v. Morrison

NASSAU COUNTY
Evidence

New York Law Journal



Justice Warshawsky
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PLAINTIFF CORPORATION sued defendants after they allegedly withheld certain money allegedly due to plaintiff. At issue was the matter of numerous documents being withheld by plaintiff as protected by attorney-client privilege. The withheld documents involved correspondence among plaintiff's high ranking officers, its outside counsel and its accountants. Defendants alleged that plaintiff had inappropriately claimed attorney-client privilege for the withheld documents that were disclosed to its accountants. Plaintiff countered that its accountants were providing assistance to its counsel. Citing Black & Decker Corp. v. U.S, as precedent, the court found the majority of the correspondence was not privileged because it was not between plaintiff's outside counsel and accountants, but between its officers and its accountants' employees. In addition, the court noted that the accountants were also employed as plaintiff's auditor and were a party in this action.