In Morgan v. City of Rockville, No. 13-1394 (D. Md. Oct. 28, 2014), the district court held that a report prepared by counsel following an internal investigation remained privileged despite the client’s public statement that no unlawful conduct was found.  This case involved a claim of racial discrimination filed against the City.  The  City hired outside counsel to conduct an investigation and to submit a “Confidential Report” summarizing counsel’s findings and offering recommendations to the City.  After the report was completed, the City issued a press release stating that the City had engaged counsel to conduct an internal review and that counsel “identified no unlawful conduct.”  The press release stated that the report contained several recommendations, and identified three categories of those recommendations.  Plaintiff argued that counsel was providing business advice because interviewing employees about potential workplace complaints does not constitute a legal service.  The court disagreed, and held that the investigation was legal in nature and protected by the attorney-client privilege.  Here, the City’s purpose in hiring counsel was to obtain legal advice regarding the content and sufficiency of the City’s personnel policies vis-à-vis federal and state laws and statutes.  Further, the press release did not waive privilege, as the final sentence of the press release emphasized that the “final report is confidential as it contains personnel information which cannot be made public,” the general statements in the press release did not disclose any specific privileged communications, and they were not intended to gain an advantage in litigation.