Accident Exchange Ltd & Anor v McLean & Ors

Accident Exchange Ltd & Anor v McLean & Ors

The iniquity exception to privilege does not apply to documents held by solicitors for innocent clients where the third party's wrongdoing (Autofocus Ltd) was parasitic upon an existing solicitor-client relationship and did not use the clients as 'tools' in the sense required by authority. AE's contractual rights to documents do not override the clients' privilege, and AE cannot unilaterally waive common interest privilege for inspection by third parties. The applications for inspection are refused.

Parties
Claimant: Accident Exchange Limited; Claimant: Automotive and Insurance Solutions Group PLC; Defendant: Colin McLean; Defendant: Suzanna Forrest; Defendant: Morgan Cole (a firm); Defendant: Morgan Cole LLP; Defendant: Neil Forsyth; Defendant: Keoghs (a firm); Defendant: Keoghs LLP; Defendant: Melanie Mooney; Defendant: Lyons Davidson (a firm); Defendant: Nigel Partridge; Interested Party: The Direct Line Group; Interested Party: Royal & Sun Alliance Insurance Plc
Jurisdiction
England and Wales
Judgment Date
11 January 2018
Procedural Posture
Civil / Interlocutory Applications Regarding Disclosure and Privilege
Outcome
Applications for inspection refused
Legal Topics
Legal Professional Privilege, Iniquity Exception, Disclosure of Documents, Common Interest Privilege, Contractual Rights to Documents
Civil Procedure Insurance Law Professional Negligence Legal Professional Privilege Iniquity Exception Disclosure of Documents Common Interest Privilege Contractual Rights to Documents

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Parties

Accident Exchange Limited

Claimant

Automotive and Insurance Solutions Group PLC

Claimant

Colin McLean

Defendant

Suzanna Forrest

Defendant

Morgan Cole (a firm)

Defendant

Morgan Cole LLP

Defendant

Neil Forsyth

Defendant

Keoghs (a firm)

Defendant

Keoghs LLP

Defendant

Melanie Mooney

Defendant

Lyons Davidson (a firm)

Defendant

Nigel Partridge

Defendant

The Direct Line Group

Interested Party

Royal & Sun Alliance Insurance Plc

Interested Party

Procedural Posture

Civil / Interlocutory Applications Regarding Disclosure and Privilege

Legal Issues

  1. 1 Whether the iniquity exception to legal professional privilege applies to documents held by solicitors for innocent clients where a third party (Autofocus Ltd) is alleged to have committed fraud
  2. 2 Whether Accident Exchange Limited (AE) has control over and the right to disclose documents held by solicitors instructed to pursue claims on behalf of AE's clients
  3. 3 Whether AE can unilaterally waive privilege in documents over which it and its clients have common interest privilege

Ratio Decidendi

The iniquity exception to privilege does not apply to documents held by solicitors for innocent clients where the third party's wrongdoing (Autofocus Ltd) was parasitic upon an existing solicitor-client relationship and did not use the clients as 'tools' in the sense required by authority. AE's contractual rights to documents do not override the clients' privilege, and AE cannot unilaterally waive common interest privilege for inspection by third parties. The applications for inspection are refused.

Court Disposition

Applications for inspection refused

Orders

  • AE's application for inspection of documents over which solicitor defendants claim privilege is refused.
  • Applications by Morgan Cole and Lyons Davidson defendants for inspection of documents held by solicitors instructed by AE's clients are refused.