Client, privilege and outside counselCliente, privilegio y abogados externos
The CFO asks the general counsel, over lunch, how much personal exposure he has if the restatement goes badly. What should the GC say first?
Rule 1.13: the organization is the client; when a constituent's interests diverge, the lawyer must explain whom she represents.Regla 1.13: la organización es el cliente; cuando los intereses de un constituyente divergen, el abogado debe explicar a quién representa.
Model Rule 1.13(f)
Before interviewing a warehouse manager in an internal investigation, counsel should:
The Upjohn warning protects both the privilege and the employee's understanding of the situation.La advertencia Upjohn protege tanto el privilegio como la comprensión del empleado sobre la situación.
Upjohn Co. v. United States (1981)
A product manager sends a pricing proposal to six colleagues and copies the in-house lawyer. In later litigation, the email is:
The test is purpose and participants: legal advice sought from counsel in confidence. Separate the lawyer's advice from the business thread.La prueba es el propósito y los participantes: consejo jurídico pedido al abogado en confianza. Separa el consejo del hilo de negocios.
Class 2; dual-purpose communications
An executive under investigation pastes the company's internal investigation memo into a public AI chatbot to get advice. Under Heppner, the chatbot conversation is:
A public AI tool is a third party; disclosure to it on the client's own initiative is outside the privilege and risks waiver.Una herramienta pública de AI es un tercero; revelarle información por iniciativa propia queda fuera del privilegio y arriesga la renuncia.
United States v. Heppner (S.D.N.Y. 2026)
Which is the most common mistake companies make when hiring outside counsel for a major matter?
The selection criteria that matter are fit, responsiveness and judgment; the brand on the letterhead is not one of them.Los criterios que importan son el ajuste, la capacidad de respuesta y el criterio; la marca en el membrete no es uno de ellos.
Class 3; Rapid Fire on selecting outside counsel
An invoice entry reads: 'Attention to matter, 6.2 hours.' The right response under typical outside counsel guidelines is:
Invoice review enforces the guidelines line by line; the firm learns quickly what the client will pay for.La revisión de facturas aplica los lineamientos línea por línea; el despacho aprende rápido qué pagará el cliente.
Class 3 lab: review the invoice
The ethical duty of covers everything learned in the representation; the evidentiary covers only confidential communications for legal advice.
Everything privileged is confidential; most confidential information is not privileged.Todo lo privilegiado es confidencial; casi nada de lo confidencial es privilegiado.
In four sentences, explain what an early case assessment is and why inside counsel insists on one.
AnswerRespuesta: An early case assessment is a structured review in the first weeks of a dispute that estimates the exposure, the cost to defend, the key facts, documents and witnesses, and the options (settle, fight, insure, business fix). Inside counsel insists on it because the business must decide how much to invest before the outside firm's meter has run, because it forces the firm to commit to a view and a budget, and because a dispute that costs more to defend than to settle should be settled early. It also starts the litigation hold and the insurance notice on time.
- structured early review: exposure, cost, facts, options
- business decides before fees accumulate
- commits the firm to a view and budget
- triggers hold and insurance notice