A v B & Anor [2020] EWHC 1491 (Ch) (10 June 2020)

A v B & Anor [2020] EWHC 1491 (Ch) (10 June 2020)

The court refused to grant the declaration sought by A (or B's alternative), holding that under SATCAR, B is obliged to comply with statutory notices unless the documents are in fact privileged, not merely asserted to be so by A. The proper mechanism for resolving disputes as to privilege is by proceedings between A and B, not by a general declaration. The statutory regime does not support an obligation on B to withhold documents solely on the basis of A's assertion of privilege.

Citation
[2020] EWHC 1491 (Ch)
Parties
Claimant: A; First Defendant: B; Second Defendant: The Financial Reporting Council Limited
Jurisdiction
England and Wales
Judgment Date
10 June 2020
Procedural Posture
Part 8 Claim (declaratory Relief) / Judgment After Hearing on 28 April 2020
Outcome
Claim dismissed; no declaration granted.
Legal Topics
Legal Professional Privilege, Statutory Disclosure Obligations, Declaratory Relief, Audit Regulation, SATCAR Compliance
Regulatory Law Financial Services Law Civil Procedure Legal Professional Privilege Statutory Disclosure Obligations Declaratory Relief Audit Regulation SATCAR Compliance

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Parties

A

Claimant

B

First Defendant

The Financial Reporting Council Limited

Second Defendant

Procedural Posture

Part 8 Claim (declaratory Relief) / Judgment After Hearing on 28 April 2020

Legal Issues

  1. 1 Whether an auditor (B) is obliged to withhold production of documents to the FRC on the grounds of a client's (A's) assertion of legal professional privilege, or whether B is entitled/obliged to make its own assessment of the validity of A's claim to privilege before withholding disclosure.

Ratio Decidendi

The court refused to grant the declaration sought by A (or B's alternative), holding that under SATCAR, B is obliged to comply with statutory notices unless the documents are in fact privileged, not merely asserted to be so by A. The proper mechanism for resolving disputes as to privilege is by proceedings between A and B, not by a general declaration. The statutory regime does not support an obligation on B to withhold documents solely on the basis of A's assertion of privilege.

Court Disposition

Claim dismissed; no declaration granted.