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Twitter, Inc. v. Elon R. Musk

Citation: Not availableDocket: 2022-0613-KSJM

Court: Court of Chancery of Delaware; September 13, 2022; Delaware; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves a legal dispute between Twitter, Inc. and Elon R. Musk, along with his companies, concerning a merger agreement. The primary issue revolves around whether Musk can claim attorney-client privilege over emails related to the merger, which were communicated using corporate email accounts from SpaceX and Tesla. Twitter sought to compel the production of these emails, arguing that Musk had no reasonable expectation of privacy due to the companies' email policies, which stipulate that employees have no privacy rights and that the companies reserve the right to monitor communications. Musk countered this by providing affidavits asserting limited monitoring practices and special provisions for his email usage, claiming a reasonable expectation of privacy. The court applied the four-factor analysis from the Asia Global case, ultimately siding with Musk by recognizing the nuanced interplay between company policies and Musk's specific circumstances. It concluded that Musk's position and the limited monitoring practices afforded him a reasonable expectation of privacy, thereby upholding his claim of attorney-client privilege. Consequently, the court denied Twitter's motion to compel, and also addressed issues regarding excessive redactions in public filings, directing the parties to minimize them for public transparency.

Legal Issues Addressed

Application of Asia Global Factors to Privacy Expectations

Application: The court applied the Asia Global four-factor analysis to determine Musk's expectation of privacy, focusing on company policies, monitoring practices, and Musk's awareness of these policies.

Reasoning: The Asia Global case outlines four guiding factors to assess an employee's expectation of privacy... SpaceX policies do not completely ban personal use but indicate no expectation of privacy and allow monitoring.

Attorney-Client Privilege under Delaware Rule of Evidence 502

Application: The court determined that Musk established a reasonable expectation of privacy, thus supporting his claim of attorney-client privilege over emails from SpaceX and Tesla accounts.

Reasoning: Consequently, Musk has established a reasonable expectation of privacy over his emails, affirming his claim of attorney-client privilege, and Twitter's motion to compel their production is denied.

Expectation of Privacy in Corporate Email Accounts

Application: Despite company policies stating no expectation of privacy, Musk successfully argued for his reasonable expectation of privacy due to limited monitoring practices and 'Musk-specific' rules.

Reasoning: Musk's situation is further complicated by claims of 'Musk-specific' rules allowing him unrestricted personal use of his Tesla email without access by others unless legally necessary.

Redaction in Public Filings

Application: The court ordered the parties to minimize redactions in public filings to ensure transparency and public access to information pertinent to the case.

Reasoning: The court found the redactions in public filings excessive and directed the parties to prepare new filings that minimize redactions, ensuring that the public has access to information pertinent to the case.