Sneider v. Kimberly-Clark Corp.

91 F.R.D. 1, 33 Fed. R. Serv. 2d 449, 1980 U.S. Dist. LEXIS 16909
CourtDistrict Court, N.D. Illinois
DecidedJanuary 11, 1980
DocketNo. 78 C 1361
StatusPublished
Cited by37 cases

This text of 91 F.R.D. 1 (Sneider v. Kimberly-Clark Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sneider v. Kimberly-Clark Corp., 91 F.R.D. 1, 33 Fed. R. Serv. 2d 449, 1980 U.S. Dist. LEXIS 16909 (N.D. Ill. 1980).

Opinion

MEMORANDUM AND ORDER

OLGA JURCO, United States Magistrate.

Plaintiff and defendant have filed cross-motions to compel discovery. Each is resisting discovery through assertions of the attorney-client and work product privileges. Since this suit concerns the claim of privilege in a corporate and patent context, special emphasis will be placed upon the developing law of privilege in those areas. After a general survey of the law of privilege, the defendant’s privilege claims will be examined and then the plaintiff’s.

A. THE ATTORNEY-CLIENT PRIVILEGE

The attorney client privilege is designed to encourage the free flow of communications. See United States v. Upjohn, 600 F.2d 1223 (6th Cir. June 28,1979); In re Langswager, 392 F.Supp. 783 (N.D.Ill.1975). [3]*3Although many commentators have questioned the social utility of blocking “out the light,” the privilege is generally received with deference if properly substantiated. Generally Note: The Lawyer Client Privilege, 56 Nw.U.L.Rev. 235 (1961). This judicial district, however, does urge that the privilege be narrowly construed. In Re Transocean Sec. Litigation, 78 F.R.D. 692 (N.D.Ill.1978). See also 8 J. Wigmore Evidence § 2291 at 554, (MacNaughton rev. ed. 1961).

The essential elements of the privilege have been outlined by Wigmore:

“(1) Where legal advice of any kind is sought (2) from a professional legal adviser in his capacity as such, (3) the communications relating to that purpose (4) made in confidence (5) by the client, (6) are at his instance permanently protected (7) from disclosure by himself or by the legal adviser, (8) except the protection be waived. 8 J. Wigmore, Evidence § 2292 .(MacNaughton rev. 1961).” Id. at 904.

The burden of establishing these elements falls squarely upon the party asserting the privilege. Fisher v. United States, 425 U.S. 391, 96 S.Ct. 1569, 48 L.Ed.2d 39 (1976); Interlego A. G. v. F. A. O. Schwartz, Inc., 196 USPQ 8, 11 n. 5 (N.D.Ga.1977); See United States v. Tratner, 511 F.2d 248 (7th Cir. 1975). The mere existence of the attorney-client relationship does not raise a presumption of confidentiality. Tratner, supra; Duplan Corp. v. Deering Milliken, Inc., 397 F.Supp. 1146 (So.Ca.D.C.1975). Therefore, the plaintiff and the defendant must demonstrate why the privilege should attach. In particular, this necessitates a showing of what parties were involved and the legal nature of the advice sought or rendered. See Fisher v. United States, supra; Burlington Industries v. Exxon Corp., 65 F.R.D. 26 (1974).

Demonstrating why the privilege should be applicable to the corporate client is more complex. The attorney-client privilege has been recognized in the corporate setting since the 1960’s. The problems inherent in the corporate use of privilege are summed up by the court in the Upjohn case, supra:

“The application of the privilege to corporate ‘client’ poses a somewhat different problem. Since corporations .are inanimate, artificial entities, the attorney-client relationship is conceptually more difficult, and its underlying principles are less obvious. As clients, corporations can communicate to attorneys only through agents. Moreover, corporations, unlike individuals, are organized in such a way that responsibilities, and the information needed to fulfill the responsibilities, are delegated and compartmentalized.”

Because the attorney-client privilege is not easily confined with respect to corporations, the circuits are split as to how the privilege should be applied. The “control group” test would permit the privilege to be claimed by personnel within the corporation who have authority to act upon the legal advice rendered. City of Philadelphia v. Westinghouse Electric Corp., 210 F.Supp. 483 (E.D. Pa.1962). The Seventh Circuit has adopted the Harper & Row standard, known as the subject-matter test, and this alternative expands the availability of the privilege beyond the control group. That approach must be our guide in this case. The test is described as follows:

“The specification of the conditions varies, but the sum and substance are similar: If the agent is in possession of information acquired in the ordinary course of business relating to the subject matter of his employment, and the information is communicated confidentially to corporate counsel to assist him in giving legal advice to the corporation, then the communication is privileged. Under the ‘subject-matter’ approach, the privilege does not cover communication of pre-existing documents prepared for independent business reasons or communications unrelated to the subject matter of the agent’s employment.”

Hercules, Inc. v. Exxon Corp., 434 F.Supp. 136 (D.C.Del.1977). See Harper & Row Publishers, Inc. v. Decker, 423 F.2d 487 (7th Cir. 1970) (Per curiam), aff’d without opinion by equally divided court, 400 U.S. 348, [4]*491 S.Ct. 479, 27 L.Ed.2d 433 (1971); See Diversified Industries, Inc. v. Meredith, 572 F.2d 596 (8th Cir. 1977) (en banc). The court in the Diversified case narrowed the test slightly by requiring that the communication with counsel be at the direction of the corporate’s superior for legal advice. Nevertheless, this test broadens the privilege by extending its protection to additional parties outside the “control group” who have contact with privileged “subject matter.” Notwithstanding its breadth, the corporation still cannot secure the privilege’s protection for non-legal or business advice. See Valente v. Pepsico, 68 F.R.D. 361, 367 (1975). Similarly, the courts will not permit the corporation to merely funnel papers through the attorney in order to assert the privilege. Radiant Burners, Inc. v. American Gas Ass’n., 320 F.2d 314 (7th Cir. 1974). Therefore, even though the “control group” test is no longer the only viable test in this circuit, the corporation must still demonstrate all the elements of the privilege and justify the extension of the privilege to employees outside the control group.

B. DEFENDANT’S CLAIM OF PRIVILEGE

In order to determine the availability of the privilege to the corporate client, it is necessary to consider the status of the parties involved. Subsequent to the in camera inspection of the defendant corporation’s division of responsibility, it is clear that the listed employees fall either within' the control group of the corporation or within the perimeter of parties contemplated by the subject-matter test insofar as their duties relate to the development of this new product. See Harper and Row, supra.

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91 F.R.D. 1, 33 Fed. R. Serv. 2d 449, 1980 U.S. Dist. LEXIS 16909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sneider-v-kimberly-clark-corp-ilnd-1980.