Chambers v. Gold Medal Bakery, Inc.

This case involved two litigations in which directors-shareholders asserted claims against a closely-held corporation and its directors. The first litigation, brought in 2007, settled, and the instant lawsuit arose out of an alleged violation of the settlement agreement. The case came before the Supreme Court on an interlocutory appeal from an order requiring the corporation to produce documents described in the Plaintiffs' subpoena. At issue on appeal was whether the corporation and its corporate counsel and accountants could assert attorney-client privilege or work product protection against the directors-shareholders. The Supreme Court vacated the order for the production of documents to the extent that it implicated privileged or work-product protect material as related to the 2007 and present litigations, holding that, because there was sufficient evidence that Plaintiffs' interests were adverse to the interests of the corporation as concerned the litigations, Plaintiffs were not entitled to privileged or protected information relating to the two litigations. View "Chambers v. Gold Medal Bakery, Inc." on Justia Law