We started the discussion of attorney-client privilege on Friday.  In this case, plaintiff  loaned money to corporation, and eventually, the corporation stops paying it back.  From there, the UCC-1, Security Agreements and Transfers are simply too complicated for a blog entry such as this.  Suffice it to say, there are multiple law firms, making multiple claims against the parties and eachother, and a huge question of attorney-client privilege.  Justice O’Neill Levy sorts it all out in a primer on attorney -client privilege in Priestley v Panmedix Inc. 2017 NY Slip Op 30054(U)  January 12, 2017 Supreme Court, New York County, Docket Number: 114874/10.  Today we examine the crime-fraud exception to attorney-client privilege.

“Crime Fraud Exception

“A party may not invoke the attorney-client privilege where ‘it involves client communications that may have been in furtherance of a fraudulent scheme, an alleged breach of fiduciary duty or an accusation of some other wrongful conduct.'” Art Capital Group LLC v Rose, 54 AD3d 27 6 I 277 (1st Dept 2008) I quoting Ulico Cas. Co. v Wilson, Elser, Mo-skowitz, Edelman & Dicker, 1 AD3d 223, 224 (1st Dept 2003). “A party seeking ‘to invoke the crime-fraud exception must demonstrate that there is a factual basis for a showing of probable cause to believe that a fraud or crime has been committed and that the communications in question were in furtherance of the fraud or crime.'” Matter of New York City Asbestos Litig., 109 AD3d 7, 10-11 · (lst Dept 2013), quoting United States v Jacobs, 117 F3d 82, 87 (2d Cir 1997) (other citations omitted). The crime-fraud exception also applies· to the attorney work product privilege. See Meyer v Kalanick, F Supp 3d, 2016 WL 3981369 , * 5 , * 6 n 5 , 2016 US Dist LEXIS 96583, *16, *22 n 5 (SD NY 2016) .