ECJ Ruling Sets Dangerous Precedent
Brussels, 14th September 2010
A ruling made today by the European Court of Justice (ECJ) threatens the ancient privilege of lawyer/client confidentiality, Timothy Kirkhope MEP, Conservative leader in the European Parliament and a lawyer himself, has warned.
The ECJ has said that, in the area of competition law, communications from in-house lawyers are not covered by legal professional privilege. The ruling comes after the European Commission launched an investigation into possible anti-competitive practices at Akzo Nobel chemicals and its subsidiary Akcos Chemicals. Working with the UK Office of Fair Trading the commission seized exchanges between the company's Managing Director and its in-house legal department, which Akzo Nobel challenged.
Responding to the judgment, Mr Kirkhope said:
"Lawyers will refrain from giving clear and independent legal advice if they know that it could be held aloft for all to see.
"In-house lawyers provide businesses with clear information regarding their legal obligations. Companies will not ask their lawyers difficult questions in fear that their own legal advice could be used against them. This decision could lead to an increase in non-compliance and uncertainty in European companies.
"This ruling challenges a convention of professional legal privilege that has existed since the 16th century. It is bad for legal professionals and for European businesses."
