Supreme Court of WA upholds receivers' legal professional privilege

In Carey v Korda & Winterbottom (No 2) [2011] WASC 220, the Supreme Court of Western Australia held that a receiver is the person entitled to claim legal professional privilege in respect of legal advice it has sought in relation to receivership.

This case confirms that receivers can seek legal advice on their own behalf, as opposed to as an agent on behalf of the company in receivership. In the event of discovery being ordered by a court, solicitors' bills and receivers' charging schedules would ordinarily be discoverable. However, legal professional privilege extends to the information contained within the bills and schedules in circumstances where that information sets out the nature or narrative of the legal advice. Further, the court held that the receivers will not waive legal professional privilege by disclosing these bills of costs and charging schedules to the company in receivership.

For more information on this case, see our Focus article.