The relationship between an attorney and a client is a unique one based on facts and information a client may not let many other people be privy to in normal circumstances. A client has a privileged relationship with his or her lawyer, meaning the information shared between them remains confidential and that both parties can choose which elements of the information shall be kept private and which may be disclosed in public. https://509208lawgroup.com/services/probate/
While attorney-client privilege is universally understood, certain types of lawyers are imposed with exceptions to this privilege based on their practice focus within the law. Transactional attorneys have a different type of attorney-client privilege than most lawyers and the extent of the confidentiality privilege to which they are entitled depends upon the nature of the services they provide to a business and the primary purpose of their services.
What affects the confidentiality privilege of transactional attorneys? The type of services provided by a transactional lawyer to a company ranges depending on the company's needs. Services may range from being advisory and consultatory in nature, as in business planning and analyzing, to strict legal representation, as in business dispute litigation.
If a business attorney is analyzing or advising on business strategy, managing transactions, or providing business consultations on maximizing assets without providing legal representation for a business, he or she is not entitled to attorney-client privilege. As such, he or she is not required to keep information shared by the client confidential.
If a transactional attorney is managing or negotiating a business transaction in which legal issues are involved, he or she is serving as a legal representative for the company. He or she is consequently permitted to employ the confidentiality privilege.
Why attorney-client privilege matters
The confidentiality privilege between a lawyer and their client may not seem significant when your company hires a business law attorney to aid in business transactions, help close deals, and learn options for maximizing company assets. However, if a business dispute should happen to arise during or after a business transaction in which your lawyer was involved and he or she did not provide legal representation in his or her services, the information previously shared with the lawyer is not protected by this privilege and can be shared with the other entity involved in the business dispute.
If the other side in the dispute attempts to learn the strategies and interactions of your company through an attorney who is not entitled to attorney-client privilege, this lack of confidentiality can serve as a threat to your business. Under business law, certain aspects of your case are not protected by attorney-client privilege.
