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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: November 2, 2016

Texas Accountant-Client Privilege Does Not Cover Response to NY AG Subpoena

On October 26, 2016, Justice Ostrager of the New York County Commercial Division issued a decision in People v. PricewaterhouseCoopers LLP, 2016 NY Slip Op. 32130(U), holding that the Texas accountant-client privilege does not apply to a response to a subpoena from the New York Attorney General. After first holding that the statute did not apply to the the Attorney General’s subpoena, the court went on to explain that even “[i]f there were an applicable accountant-client privilege under Texas law, it would be nevertheless unavailing because New York law applies to the NYAG’s application. New York does not recognize an accountant-client privilege, and controlling authority holds that: The law of the place where the evidence in question will be introduced at trial or the location of the discovery proceeding is applied when deciding privilege issues.” (Internal quotations and citations omitted) (emphasis added).

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