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In re Grand Jury Subpoena
United States Court of Appeals for the First Circuit
274 F.3d 563 (2001)
Due to the confidential nature of grand jury proceedings, the court used fictitious names in its opinion. Oldco, a subsidiary company of Newparent, pled guilty to conspiracy to defraud the Internal Revenue Service (IRS) and agreed to cooperate with the federal government in an ongoing investigation into the company’s practices and its officers. As part of that cooperation, Oldco agreed to waive attorney-client and work product privileges. Thereafter, a federal grand jury issued a subpoena duces tecum to Newparent seeking information related to Oldco’s “rebate program.” The subpoena sought records dating back to before Oldco was a subsidiary of Newparent. Before Newparent acquired Oldco it was a closely-held corporation run by Richard Roe and Morris Moe. Lawyer served as Oldco’s outside counsel. Roe, Moe, and Lawyer filed a motion to quash the subpoena claiming a longstanding joint defense agreement that provided that all communications among the three individuals were privileged. The district court denied the motion to quash. Roe, Moe, and Lawyer appealed.
Rule of Law
Holding and Reasoning (Selya, J.)
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