THE HOME OF NEWCASTLE'S LEGAL EAGLES

This might also interest you...

Trustees in Bankruptcy and legal professional privilege: where do we stand?

18 Dec 2017

In the recent case of Re Lemos, the court considered the practical impact of the 2016 decision in Shlosberg v Avonwick which held that legal professional privilege does not vest in a TiB.

 

Facts

 

Mr Lemos’ sister obtained a default judgment against Mr Lemos for around $17.9m.  As a result, Mr Lemos petitioned for his own bankruptcy and was adjudged bankrupt in March 2015.

 

Mr Lemos’ TiBs obtained documents from Mr Lemos’ solicitors which they believed would assist them in investigating possible transactions defrauding creditors.  The TiBs brought an application seeking directions as to whether those documents could be used in future proceedings.  The TiBs submitted that not allowing such information to be used would prevent them from carrying out their statutory duties.

 

Judgment

 

The Court dismissed the application, applying Shlosberg v Avonwick and reiterating that legal professional privilege was a fundamental human right applying to both liabilities and assets.  The Court also held that such privilege cannot be waived unless statutory provisions provide for it or the Bankrupt provides consent – neither being the case here.

 

Comment

 

Whilst this is a limitation on the powers of IPs, it highlights how important legal professional privilege is.  As such the Court is unlikely to step away from protecting such privilege unless specifically obliged to do so.

Share on Facebook
Share on Twitter
Please reload

Please reload

  • FB
  • Twitter
  • LinkedIn
  • Youtube

Short Richardson & Forth, 4 Mosley Street, Newcastle upon Tyne, NE1 1DE

Tel: +44 (0)191 232 0283  ·  Email: info@srflegal.co.uk

 

Short Richardson and Forth Solicitors Limited is a private limited company registered in England and Wales under company number 10572065, authorised and regulated by the Solicitors Regulation Authority No 637150.

Short Richardson and Forth Solicitors Limited is a private limited company constituted and run in accordance with the provisions of the Companies Act 2006. The term “partner” has been used to denote individual senior solicitors employed by Short Richardson and Forth Solicitors Limited.