Bailey v Beagle Management Pty Ltd [2001] FCA 185

Bailey v Beagle Management Pty Ltd [2001] FCA 185

The chartered accountant’s report was not privileged under legal professional privilege because it was created for the purpose of being shown to the trustee in settlement negotiations, not exclusively for the conduct of litigation; however, it was protected by the without prejudice privilege because it formed part of genuine settlement negotiations, and such privilege extends to production for inspection as well as admissibility in evidence.

Jurisdiction
Australia
Judgment Date
26 February 2001
Procedural Posture
Interlocutory Application / Application for Privilege From Production of Document (notice to Produce) in Proceedings for Security for Costs
Outcome
Claim of privilege upheld; document not to be produced or inspected by first to fifth respondents.
Legal Topics
['legal Professional Privilege' 'without Prejudice Privilege' 'discovery of Documents' 'document Production' 'without Prejudice Rule']
['practice and Procedure' 'evidence'] ['legal Professional Privilege' 'without Prejudice Privilege' 'discovery of Documents' 'document Production' 'without Prejudice Rule']

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Procedural Posture

Interlocutory Application / Application for Privilege From Production of Document (notice to Produce) in Proceedings for Security for Costs

Legal Issues

  1. 1 ["Whether the chartered accountant's report is privileged from production on grounds of legal professional privilege" 'Whether the document is privileged as a without prejudice communication' 'Whether public policy prevents privilege in this circumstance']

Ratio Decidendi

The chartered accountant’s report was not privileged under legal professional privilege because it was created for the purpose of being shown to the trustee in settlement negotiations, not exclusively for the conduct of litigation; however, it was protected by the without prejudice privilege because it formed part of genuine settlement negotiations, and such privilege extends to production for inspection as well as admissibility in evidence.

Court Disposition

Claim of privilege upheld; document not to be produced or inspected by first to fifth respondents.

Orders

  • ["The accountant's report produced pursuant to the notice to produce is privileged from production to and inspection by the first to fifth respondents." "The first to fifth respondents are to pay the applicants' costs of the hearing of the application on privilege."]