The 6th U.S. Circuit Court of Appeals ruled that the materials from internal investigations conducted by two law firms for FirstEnergy Corp. are likely protected from disclosure due to attorney-client privilege and the work-product doctrine. The 6th Circuit temporarily stayed a federal judge's order for disclosure amidst a shareholder lawsuit. The firms were hired following allegations of a bribery scheme linked to FirstEnergy, emphasizing the communications produced during the investigations align with protections established by the Supreme Court in Upjohn Co. v. United States.
The 6th Circuit cited the U.S. Supreme Court's 1981 decision in Upjohn Co. v. United States, which held that attorney-client privilege applies when companies seek legal advice through internal investigations.
The law firms hired to investigate produced 'precisely the kinds of communications that Upjohn contemplates,' ensuring protections under attorney-client privilege during investigations.
The 6th Circuit's order temporarily stayed a federal judge's order for disclosure of investigative materials, emphasizing the protections afforded by the attorney-client privilege and work-product doctrine.
The district court’s reasoning, which suggested that business purpose undermined legal protection, was rejected by the 6th Circuit as it misinterpreted the application of the privilege.
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