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Hear this out loud PauseA Kovel agreement is an arrangement whereby a client engages counsel to provide legal services, and counsel, in turn, engages specialists, such as CPAs, to support its services to the client.
A Kovel agreement typically states that the workpapers created by the CPA firm belong to the attorney in order to maintain privilege.
Confidentiality of Information. (a) A lawyer shall not reveal information relating to the representation of a client unless the client gives informed consent, the disclosure is impliedly authorized in order to carry out the representation, or the disclosure is permitted by paragraph (b).
Thus, subject matter waiver is limited to situations in which a party intentionally puts protected information into the litigation in a selective, misleading and unfair manner. It follows that an inadvertent disclosure of protected information can never result in a subject matter waiver. See Rule 502(b).
The accountant-client privilege does not exist in common law. United States v. Arthur Young & Co., 465 U.S. 805, 817 (1984). Instead, the privilege exists under the Colorado Rules of Evidence and state statutes.
Hear this out loud PauseA sample Kovel letter agreement that counsel may use to retain an accounting firm to aid counsel in providing legal advice or services while maintaining the attorney-client privilege and attorney work product doctrine protections.
Hear this out loud PauseThis privilege is codified in California law via Evidence Code 954, which gives your attorney the right to refuse to divulge the contents of your conversation, gives you the right to require confidentiality from your attorney, and with few exceptions, makes any breach of that confidence inadmissible in court.
Hear this out loud PauseGenerally, engagement letters are not privileged; however, if legal advice or strategy is conveyed in the letter, those portions of the letter may be privileged.