Narrative Opinion Summary
In this case, the court addressed a Motion to Compel filed by Morgan Keegan Company, Inc. and Keith E. Meyers against the Chapter 7 Trustee for Infinity Business Group, Inc., seeking disclosure of documents withheld under attorney-client privilege. Initiated by the Trustee in an adversary proceeding on August 31, 2012, the case involved allegations of fraud and breach of fiduciary duty. Following the partial granting of a Motion to Dismiss in 2013, discovery continued, during which the Trustee withheld documents citing privilege. The MK Defendants argued that a June 16, 2011 email constituted a waiver of privilege, which the court rejected, emphasizing the common interest doctrine with the South Carolina Attorney General (SCAG). The court also dismissed the applicability of the crime-fraud exception due to insufficient evidence presented by the MK Defendants. Additionally, the court found no waiver from inadequate privilege logs, given the Trustee's promise to amend them and absence of bad faith. Consequently, the Motion to Compel was denied, and both parties' requests for fees and costs were refused. The Trustee must submit revised privilege logs by April 30, 2015.
Legal Issues Addressed
Attorney-Client Privilege Waiversubscribe to see similar legal issues
Application: The court examined whether an email from the Trustee's former counsel constituted a waiver of attorney-client privilege, ultimately finding no waiver due to the common interest doctrine.
Reasoning: The MK Defendants contend that an email from the Trustee’s counsel on June 16, 2011, constituted an unequivocal waiver of privilege, which they argue extends to all related communications.
Common Interest Doctrinesubscribe to see similar legal issues
Application: The Trustee and SCAG's mutual agreement under the Common Interest Doctrine preserved privilege despite alleged waivers.
Reasoning: The common interest doctrine serves as an exception to the rule that sharing privileged communications with a third party waives the privilege.
Crime-Fraud Exceptionsubscribe to see similar legal issues
Application: The court found that the MK Defendants did not meet their burden of proving the crime-fraud exception to the attorney-client privilege.
Reasoning: The MK Defendants have only provided general references to the Complaint without substantive evidence to support their claims, leading the Court to deny the Motion to Compel on this basis.
Inadequate Privilege Logssubscribe to see similar legal issues
Application: The court addressed the adequacy of privilege logs and found no waiver of privilege due to the Trustee's commitment to amend the logs.
Reasoning: The Trustee agreed to amend the logs and address any deficiencies at the hearing.