Attorney-Client Privilege And Health Insurers

Law360, New York (May 3, 2007, 12:00 AM EDT) -- Under the common-law evidentiary rule known as the "fiduciary exception" to the attorney-client privilege, certain fiduciaries that obtain legal advice during the execution of their fiduciary obligations may not thereafter assert the attorney-client privilege against their beneficiaries.

The fiduciary exception arose in American case law during the 1970s where it was adopted in two distinct contexts-trust administration and shareholder suits.

In the early 1980s, many federal courts began applying the fiduciary exception to Employee Retirement Income Security Act fiduciaries.

Under ERISA, "an entity is considered a...
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