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Recent decision of judgment of the Court (Grand Chamber) of EU in Akzo Nobel Chemicals, et al v. European Commission imperils attorney client privilege for foreign based subsidiaries, including in U.S. tax proceedings and non-tax proceedings
  • Fox Rothschild LLP
  • European Union, USA
  • June 26 2011

In a decision that has wide-sweeping implications for companies that are doing business in the EU or otherwise become a party to a legal or administrative proceeding governed by the EU, as well as to American persons engaged, directly or indirectly such as through ownership of a controlled subsidiary or company in the EU, the Grand Chamber of the EU Court affirmed the decision of the Court of First Review (trial court) holding that various claims of legal privilege made by Akzo Nobel Chemicals and Akcros Chemicals for communications made to the companies' in-house companies were not privileged and thus were discoverable under by the European Commission