The Government's Attorney-Client
Privilege:
Should It Have One?
by Paul R. Rice
The attorney-client privilege is designed to encourage more candid and
complete communications between the client and his attorney. The privilege's
premise is that clients will be more forthright with their attorneys if
their communications can never be used against them. It is believed that
if clients are more forthcoming, attorneys will able to give better advice,
and society, ultimately, will benefit by increased compliance with the
law. P. R. Rice, Attorney-Client Privilege in the United States, §
2:3 (West Group 2nd ed. 1999).
Critical to the premise's legitimacy is the absolute nature of the privilege
protection, absent a waiver by the client. Therefore, client control over
the privilege protection is central to its success.
The Privilege is a Personal Right
Despite the fact that the privilege was a personal right designed to
encourage personal conduct, after corporate entities were recognized, they
sought, and were given, the same protection for their communications with
corporate legal counsel. Unites States v. Louisville & Nashville
Railroad, 236 U.S. 318 (1915). This application of the privilege protection,
however, was sanctioned with no explanation of how the dynamics of corporate
communications were sufficiently similar to those of the individual's to
warrant the extension of the privilege.
How, for example, is a corporation encouraged to communicate more openly
with legal counsel by the application of the privilege? The corporate entity
is a legal fiction that cannot speak or act exception through the individuals
who represent it..
While corporate employees can speak on behalf of the corporation, they
receive no personal protection from the corporation's privilege. It is
asserted or waived solely on the basis of the corporation's benefit--not
on the benefit or needs of a particular individual. Upjohn v. United
States, 449 U.S. 383 (1981).
Equally important, those employees who speak for the corporation have
no meaningful or lasting voice in the decision whether to assert or waive
the corporation's privilege protection. An officer or director has only
one vote on corporate decisions to waive privilege claims, and even that
power is lost when the corporate agent's authority is terminated--it passes
to that person's successor. Commodity Futures Trading Commission v.
Weintraub, 471 U.S. 343 (1985). Consequently, corporate agents have
little or no control over the indirect benefit that they may receive from
the corporation's exercising its privilege protection for its own benefit.
The privilege that is designed to encourage communications, is given
to an entity that cannot speak, and denied to the individuals who speak
for it. Consequently, the privilege cannot encourage a level of candor
from those individuals that justifies the suppression of relevant evidence.
Indeed, from the way the corporate privilege is currently applied, it is
unlikely that its abolition would prompt corporate employees to be less
candid with corporate counsel than they are today.
A privilege is justified only if it encourages desired conduct that
would be suppressed without it. In the corporate structure, there is no
evidence that the corporation's privilege provides any encouragement to
employees to speak more candidly about their own misdeeds over and above
the encouragement from economic threats of employer sanctions or discharge
for failing to cooperate.
In support of the corporate attorney-client privilege it might be argued
that regardless of its impact on corporate employees, if the corporate
privilege were abolished, corporate managers and directors would be less
likely to seek legal assistance in the first instance. This, of course,
is not realistic since those corporate agents responsible for seeking the
advice would subject themselves to personal liability for their negligent
mismanagement of corporate assets through their failure to obtain that
assistance.
The Problem is Expanded with the Privilege
Despite this unresolved issue, courts have universally extended the
privilege protection to
all entities, including governmental bodies.
By doing so, they have created the same unexplored problem. Why will government
employees, who are communicating about things that could personally embarrass
or incriminate themselves, be more willing to speak openly because the
government can claim the privilege when information is sought by third
parties?
The problem with applying the attorney-client privilege to governmental
bodies is exaggerated by the political environment in which the privilege
is exercised or waived. Since control over entity privileges passes to
successors in power, a different political party may be quite willing to
waive the privilege claims that apply to a predecessor's tenure, in order
to embarrass or otherwise hurt their opponents. This is particularly true
since governmental officials agreeing to the waiver cannot be held personally
liable for the negligent mismanagement of the public's assets.
An Additional Problem with the Government Privilege
The extension of the attorney-client privilege to governmental bodies
created an additional problem that courts have not addressed: Who is the
client? Is the government itself one monolithic client, or, since the state
and federal governments are divided into three separate and equal branches,
does each branch represent a separate client? Any answer to this question
will only spawn lead to many issues.
Who has control over the privilege claims of each agency or division
within a given branch of the government? While this definition issue generally
has not created problems, because disputes between governmental agencies
are usually resolved informally, it did in the recent grand jury investigation
of President Clinton. In In re Lindsey Grand Jury Testimony, 332
U.S. App. D.C. 357; 158 F.3d 1263 (D.C. Cir. Oct. 9, 1998), cert. denied
Office of the President v. Office of Independent Counsel, 1998 U.S. LEXIS
7266 (Nov. 9, 1998), the court held, for the first time, that government
attorneys could not refuse to disclose information to a federal grand jury
on the ground of the government's attorney-client privilege.
The Troublesome Lindsey Decision
It was not the result in Lindsey, but the Court's reasoning,
that was troubling. The Court refused to resolve the privilege question
through the application of well established corporate precedent. This refusal
was surprising because, after the extension of the privilege protection
to governmental bodies, courts had unquestioningly applied the wealth of
corporate precedent to resolve virtually all questions about scope, application
and waiver of the government's privilege protection. In this instance there
was adequate precedent for the Lindsey result without breaking new
ground by holding that in some circumstances public policy dictates that
the privilege cannot even be asserted.
In the corporate context, courts have recognized the right of shareholders
to gain access to privileged communications between corporate officers
and corporate legal counsel when "good cause" is demonstrated. Garner
v. Wolfinbarger, 430 F.2d 1093 (5th Cir. 1988). Over the
years this exception has been radically expanded and descriptively dubbed
the "fiduciary duty" exception. Whenever a fiduciary duty is owed to another,
the beneficiary of that duty, upon a showing of good cause, can gain access
to confidential attorney-client communications relating to the fulfillment
of those responsibilities.
In the government context, the citizens are the equivalent of the corporate
shareholders, and the grand jury investigation being conducted by Kenneth
Starr on their behalf could have been an appropriate context for the court
to announce an equivalent "good cause" exception. To do this, however,
the Court would have had to precisely define who constitutes the government
client.
Avoiding that issue, the Lindsey court unnecessarily complicated
the federal government's attorney-client privilege with a whole new public
policy exception that has unclear boundaries. For example, can a government
attorney raise the government's attorney-client privilege in response to
a subpoena from a legislative committee that is investigating activities
that will be legislated upon? Wouldn't the legislative subpoena represent
a stronger public policy interest than a grand jury subpoena investigating
the conduct of a single individual?
Another Approach--Abolishing the Government Privilege
Rather than creating exceptions to the government attorney-client privilege,
perhaps the better approach would be to abolish it altogether. Under the
logic of open meetings, sunshine, and freedom of information acts, seven
states have done this. See P.R. Rice, Attorney-Client Privilege: State
Law § 8:27 (Rice Publishing 1999). While some of these states have
continued to recognize the privilege in a litigation context (much like
the work product immunity), they have opened many formerly privileged communications
to public scrutiny. Significantly, there have so far been no reported adverse
consequences from this action.
What Will Happen Next
The illogic of the privilege in the government context cannot be ignored forever. As more states appreciate this, more legislatures will abolish their government's attorney-client privilege protection. Perhaps the states will again set the example for the federal government. Perhaps, too, this will prompt a reassessment of the initial extension of the privilege protection to corporate entities as well.