Summary:
More and more often, arbitration practitioners are confronted with the issue of whether a document is covered by legal privilege or whether it can be used as evidence even if it was exchanged in the course of settlement discussions. Because of the significant differences between domestic rules governing the issues of privilege/professional secrecy and confidentiality,parties and their counsel have different expectations about what information or documents should be considered privileged or confidential. To which ethical rules or law the Arbitral Tribunal should refer in order to decide such issues? The rules potentially applicable in cross–border transactions,especially when multinational companies have been represented by attorneys practicing in different jurisdictions, may lead to different results. Should the Tribunal consider the law of the place of the arbitration, even if there are no other connections with that law? Should the same law apply to both parties to arbitration proceedings to avoid unfair results even though the parties are located in different jurisdictions? If allegations of conflicts of interests arise following access to information deemed privileged, should such counsel be disqualified, and if this question arises, should the Arbitral Tribunal adjudicate such a dispute and on what basis? It may be unrealistic to promote “transnational rules” governing issues of legal privilege and confidentiality. Indeed, there are significant differences between countries and it is difficult,in any event, to adopt and enforce binding transnational rules. Arbitration practitioners may nevertheless be guided by general principles governing issues of privilege and confidentiality. This article presents the guiding principles identified to date in this area of law with concrete examples of their application to cross–border disputes.
ASA Bulletin