Orco Bank, N.V., Plaintiff-Appellant, v. Proteinas Del Pacifico, S.A., Defendant, and BHF Securities Corporation, Defendant-Respondent. [And a Third-Party Action.], 179 A.D.2d 390

Summary

The bank made two loans in reliance upon a letter of safekeeping by a manager of the corporation. It was later learned that the corporation had never held the collateral security. In the deposition of the bank's president, the corporation attempted to probe the measures that the bank took to assure itself of the existence of this security and of the authority of the corporation's manager to issue the representation. The bank made some responses to the inquiries but withheld more detailed testimony and documents on the ground of attorney-client privilege. On appeal, the court held that the trial court properly found that the bank waived attorney-client privilege by placing the subject matter of counsel's advice in issue and by making selective disclosure of such advice. Further, the record disclosed a substantial need for the corporation to have access to materials that would allow the corporation to contest the bank's claims that its attorneys advised it with respect to the authority ...