Law360, New York (December 22, 2014, 10:34 AM EST) -- The New York Appellate Division, First Department, came to the right conclusion recently regarding the application of the common interest privilege in the nonlitigation context. Ambac Assurance Corp. v. Countrywide Home Loans Inc. (N.Y.A.D. 1 Dept., Dec. 4, 2014). The trial court held that the common interest privilege applied only where the parties shared a common interest in pending or reasonably anticipated litigation. The appellate division rejected that logic and correctly held that the common interest privilege applies equally to litigated and nonlitigated matters. This was the first New York appellate opinion expressly adopting the majority rule on this issue and should lead to greater certainty and consistency for parties seeking legal advice to advance their common interests....