Barry E. Moore and Deborah E. Moore - Page 11

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          respondent’s agents during an examination of Surgery Center’s tax           
          returns for 1999 and 2000), and the “dissemination” of the                  
          exhibits to respondent.  International responds:                            
                    “Even if true, not one of these alleged                           
               disclosures operates as a waiver of the attorney-client                
               privilege attaching to Mr. Kelly’s letters.  The reason                
               is simple: the privilege belonged at all times to SCG                  
               [Surgery Center].  Consequently, only the entity                       
               (through the Manager) has the power to effect a waiver.                
               The actions of SCG’s tax matters partner and                           
               accountants could not waive SCG’s  privilege.                          
               As Professor Rice expresses the general rule:                          
                    Waiver of the attorney-client privilege can be                    
               either express or implied.  Express waivers are less                   
               common.  More often than not, waivers must be found by                 
               implication from client conduct that is inconsistent                   
               with any reasonable claim of confidentiality and that                  
               would make maintenance of the privilege unfair. * * *                  
          Rice, Attorney-Client Privilege in the United States, sec. 9:22,            
          at 56-57 (2d ed. 1999) (footnotes omitted); see, e.g., Hanson v.            
          AID, 372 F.3d 286, 293-294 (4th Cir. 2004) (“A client can waive             
          an attorney-client privilege expressly or through his own                   
          conduct.  Implied waiver occurs when a party claiming the                   
          privilege has voluntarily disclosed confidential information on a           
          given subject matter to a party not covered by the privilege.”              
          (Citation omitted.)).  Moreover:                                            
                    Regardless of whether the client intended to waive                
               the attorney-client privilege protection by his                        
               conduct, the client’s failure to take reasonable                       
               precautions to preserve the confidentiality of                         
               attorney-client communications can result in the                       
               destruction of their privileged protection. * * *                      







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