Canadian Law Firm Loses Daffy Argument About Privilege Issue

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Clients can lose privilege protection through explicit waiver (caused by disclosure), implied waiver (usually caused by reliance on undisclosed privileged communication to gain some litigation advantage), or as a sanction for not complying with legal, rule or court requirements when withholding privileged communications during discovery. Some litigants present astounding arguments when hoping to avoid a privilege waiver.

In Brock v. VeroBlue Farms USA, Inc., No. 25-CV-3034-CJW-KEM, 2026 U.S. Dist. LEXIS 2991 (N.D. Iowa Jan. 8. 2026), a Canadian law firm was targeted for discovery in an adversary bankruptcy proceeding. The firm finally produced a privilege log only after being held in contempt — but the log contained “no explanatory information about the contents” of the 7,000 documents for which it claimed blanket privilege protection. Id. at *15 (internal citation omitted). The firm appealed the bankruptcy court’s summary judgment order to produce the documents, and the matter was eventually transferred to a magistrate judge — who addressed the law firm’s “limited argument that it cannot waive attorney-client privilege because it is not the client.” Id. at *16-17.

After noting that “none of [the law firm’s] cited cases” supported its unique argument, the magistrate judge unsurprisingly ordered production of the documents — explaining that “[t]he requirement to produce a privilege log is better understood as part of the burden of proving privilege, rather than under the waiver doctrine.” Id. at *14-16. Because the law generally disfavors parties’ withholding of potentially relevant evidence, wildly imaginative arguments supporting such withholding usually fail.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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