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Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: July 17, 2019

Common Interest Privilege Does Not Apply to Merger Transaction

On July 9, 2019, the First Department issued a decision in Telx-New York, LLC v. 60 Hudson Owner LLC, 2019 NY Slip Op. 05484, holding that the common interest privilege did not apply to communications relating to a merger, explaining:

The common interest privilege does not apply to the communications at issue, in which plaintiff and a third party collaborated to promote their common interest in closing a merger transaction, because the communications do not relate to litigation, either pending or reasonably anticipated.

An issue that arises in almost all complex commercial litigation is identifying evidence that should be withheld from production in evidence because it is subject to the attorney-client or other privilege. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions regarding the attorney-client, common interest, work product or other privileges or exemptions from production of evidence.

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