At first blush, one assumes a loss of attorney-client privilege in legal malpractice, or in this case, an indeminfication case for legal costs.  The sued party would like to explore how the case was settled, whether settlement was reasonable, and why they should have to pay a settlement in which they did not participated.  Part of defending this case will be dissecting the attorney’s performance.

"A party suing to enforce purported indemnification rights for the costs of a prior lawsuit does not automatically waive its attorney-client privilege for communications from the prior action, an appellate panel has held.

"So far as the record for this appeal discloses, plaintiff, in commencing and prosecuting this action, has done nothing to waive the protection of the attorney-client privilege or the work-product doctrine as to materials concerning the defense and settlement of the prior lawsuit for which indemnity is sought," Justice David Friedman (See Profile) wrote for the unanimous Appellate Division, First Department, panel in Deutsche Bank Trust Company of Americas v. Tri-Links Investment Trust, 8893N. "