Waving Goodbye To Legal Privilege

A recent decision from the Court of Session (Inner House) serves as a timely reminder that if you wish to claim legal professional privilege in respect of advice received, you should be wary about disclosing that advice in any circumstances, as you may be found to have waived privilege.

The Facts

Scottish Lion was an insurance company which, as part of their business, provided occurrence based insurance relating to risks including exposure to asbestos, pollution and health hazards - losses which may not become evident until long after the exposure to which they relate. After failing to write new business, the company went into run-off and, although solvent, sought to have the court sanction a proposed scheme of arrangement under section 889 of the Companies Act 2006. This cut off scheme proposes the solvent winding up of the company, resulting in loss of cover for its policy...