New York Law (NYLE) Practice Exam

Who owns the attorney-client privilege in a corporate setting?

1. The lawyer representing the corporation

2. Individual employees of the corporation

3. The organization itself

4. Clients of the corporation

The correct answer is: The organization itself

In a corporate setting, the attorney-client privilege is owned by the organization itself. This privilege is designed to protect communications between the corporation and its legal counsel, ensuring that the information shared is kept confidential and not disclosed to outside parties. This means that the privilege is held by the corporation collectively rather than by individual employees or executives. Even if a particular employee communicates with the attorney, those communications are deemed to be made on behalf of the corporation, and thus, ownership of the privilege remains with the organization as a whole. This principle is critical as it underscores that the corporation, as a legal entity, is recognized as the client. Consequently, any waiver of the privilege or decisions regarding the privilege are made by the corporation and its authorized representatives. In contrast, individual employees may have limited authority in matters relating to the privilege, but they do not own it. Similarly, clients of the corporation, such as customers or business partners, have no standing in relation to the attorney-client privilege of the organization itself. Therefore, the comprehensive understanding of attorney-client privilege highlights the importance of corporate identity and representation in legal communication.