In re Sandisk SSDS Litigation

District Court, N.D. California·Decided July 31, 2025·No. 3:23-cv-04152·Unknown

Opinion

In re SANDISK SSDs LITIGATION. Case No. 23-cv-04152-RFL (LJC)

ORDER REGARDING PRIVILEGE DISPUTES AFTER IN CAMERA REVIEW Re: Dkt. No. 176

The parties previously met and conferred over Plaintiffs’ challenges to a large number of Defendants’ assertions of attorney-client privilege, and “Defendants agree[d] to withdraw privilege designations for the vast majority of documents originally withheld from production.” ECF No. 176 at 1. The parties narrowed their dispute to eight documents, which Defendants agreed to submit for in camera review. See ECF Nos. 176, 177. The Court addresses those documents below. Defendants filed an additional letter and declaration of Defendants’ Assistant General Counsel Ravi Puri in support of their privilege assertions, ECF Nos. 184, 184-1, while Plaintiffs elected to rest on the arguments presented in the parties’ joint letter seeking in camera review, see ECF No. 176. For the reasons discussed below, the Court finds some of Defendants’ privilege assertions to be unsupported, and ORDERS Defendants to produce documents consistent with this Order no later than August 7, 2025, unless Defendants file a motion for relief under Civil Local Rule 72-2 by that deadline. “[I]n a civil case, state law governs privilege regarding a claim or defense for which state privilege in this multi-district litigation, at least absent any showing that the law of some other state should apply. See Holley v. Gilead Scis., Inc., No. 18-cv-06972 JST (JSC), 2021 WL 2371890, at *2 (N.D. Cal. June 10, 2021) (applying California choice-of-law rules to conclude that California privilege law applied in a case with “factual connections to multiple states,” where no party introduced evidence of a conflict of laws or another state’s governmental interest in applying its own law).1 Under California law, the attorney-client privilege is governed by statute and applies to confidential communications between client and lawyer during the course of the attorney-client relationship. See Cal. Evid. Code §§ 911, 954, 952. “The party claiming the privilege has the burden of establishing the preliminary facts necessary to support its exercise.” Costco Wholesale Corp. v. Superior Ct., 47 Cal. 4th 725, 733 (2009). “Once that party establishes facts necessary to support a prima facie claim of privilege,” then the privilege is presumed to apply, and “the opponent of the claim of privilege has the burden of proof to establish the communication was not confidential or that the privilege does not for other reasons apply.” Id. “[T]o determine whether a communication is privileged, the focus of the inquiry is the dominant purpose of the relationship between the parties to the communication.” Clark v. Superior Ct., 196 Cal. App. 4th 37, 51 (2011). Where the “dominant purpose of the relationship between the parties to the communication was one of attorney-client, the communication is protected by the privilege.” Id. “[T]he relevant inquiry is not the content of the communication but is instead the relationship of the communicators.” Id. at 52. If “the communications were made during the course of an attorney-client relationship”—as opposed to a relationship with some other “dominant purpose”—then “the communications, including any reports of factual material, would be privileged, even though the factual material might be discoverable by some other means.” Costco, 47 Cal. 4th at 740. Even when an attorney-client relationship is established, however, “the inquiry turns on . . . the link between the content of the communication

1 The Court previously directed “that if any party disputes that California law governs privilege in and the types of communication that the attorney-client privilege was designed to keep confidential. In order for a communication to be privileged, it must be made for the purpose of the legal consultation, rather than some unrelated or ancillary purpose.” L.A. Cty. Bd. of Supervisors v. Superior Ct., 2 Cal. 5th 282, 297 (2016) (adopting the reasoning of a concurring opinion in Costco). California courts have recognized “that in order to implement the advice of lawyers, the advice must be communicated to others within the corporation,” and “[i]t is neither practical nor efficient to require that every corporate employee charged with implementing legal advice given by counsel for the corporation must directly meet with counsel or see verbatim excerpts of the legal advice given” as a condition of maintaining privilege. Zurich Am. Ins. Co. v. Superior Ct., 155 Cal. App. 4th 1485, 1498 (2007). A communication between non-lawyer employees that conveys privileged attorney advice remains privileged so long as sharing that information with the recipient “further[s] the interest of the client in the consultation or . . . is reasonably necessary for the transmission of the information or the accomplishment of the purpose for which the lawyer is consulted.” Id. at 1503 (quoting Cal. Evid. Code § 952).

There are additional relevant limitations on the attorney-client privilege. It is established that otherwise routine, non-privileged communications between corporate officers or employees transacting the general business of the company do not attain privileged status solely because in-house or outside counsel is “copied in” on correspondence or memoranda. In addition, [a party] may not shield facts, as opposed to communications, from discovery. Any relevant fact may not be withheld merely because it was incorporated into a communication involving an attorney. In addition, [i]t is settled that the attorney-client privilege is inapplicable where the attorney merely acts as a negotiator for the client, gives business advice or otherwise acts as a business agent. Id. at 1504 (cleaned up); see also, e.g., Chi. Title Ins. Co. v. Superior Ct., 174 Cal. App. 3d 1142, 1151 (1985). Applying federal law, courts have held that “[n]o privilege can attach to any communication as to which a business purpose would have served as a sufficient cause, i.e., any communication that would have been made because of a business purpose, even if there had been No. 21-cv-02450-WHO (DMR), 2023 WL 2699971, at *4 (N.D. Cal. Mar. 29, 2023) (quoting McCaugherty v. Siffermann, 132 F.R.D. 234, 238 (N.D. Cal. 1990), and citing Fisher v. United States, 425 U.S. 391, 403 (1976)) (alteration in original). Under that standard, communications involving in-house counsel “warrant[] heightened scrutiny because in-house counsel may act as integral players in a company’s business decisions or activities, as well as its legal matters.” Id. (cleaned up). Although federal law does not govern the scope of privilege in this litigation, the Court finds that principle consistent with California law recognizing that privilege does not attach to communications where an attorney provides business advice rather than legal advice, or where an attorney is merely “copied in” on internal business communications. See Zurich Am. Ins., 155 Cal. App. 4th at 1504. A. Document No. 153512 This document is described in Defendants’ privilege log as follows:

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In re Sandisk SSDS Litigation, (N.D. Cal. 2025).

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Related

Fisher v. United States
425 U.S. 391 (Supreme Court, 1976)
Chicago Title Insurance v. Superior Court
174 Cal. App. 3d 1142 (California Court of Appeal, 1985)
Zurich American Insurance v. Superior Court
66 Cal. Rptr. 3d 833 (California Court of Appeal, 2007)
L.A. Cnty. Bd. of Supervisors v. Superior Court of L.A. Cnty.
386 P.3d 773 (California Supreme Court, 2016)
Costco Wholesale Corp. v. Superior Court
219 P.3d 736 (California Supreme Court, 2009)
Clark v. Superior Court
196 Cal. App. 4th 37 (California Court of Appeal, 2011)
McCaugherty v. Siffermann
132 F.R.D. 234 (N.D. California, 1990)