A motion arose in bankruptcy litigation concerning whether portions of a trustee’s report disclosed privileged communications from a prior joint retainer between the trustee and a creditor.
The creditor argued the materials were protected by solicitor‑client privilege, settlement privilege, and common interest privilege and sought to prevent their disclosure.
The court held that, in a dispute between former joint clients over removal of counsel, solicitor‑client privilege does not apply between the clients themselves, allowing the full record to be considered on that motion.
However, for the trustee’s broader motion for advice and directions involving third parties, several documents remained privileged because privilege jointly held by co‑clients cannot be unilaterally waived.
The court therefore ordered certain materials sealed for the removal motion but redacted from the public record for other proceedings.