In re Teleglobe Communications Corp., et al. v. BCE Inc.
United States Court of Appeals for the Third Circuit
493 F.3d 345 (2007)
- Written by Sean Carroll, JD
Facts
Teleglobe, Inc., was a subsidiary of Bell Canada Enterprises, Inc. (BCE) (defendant). After BCE stopped funding Teleglobe, Teleglobe filed for bankruptcy. Teleglobe’s subsidiaries (plaintiffs) also filed for bankruptcy. Concurrently, Teleglobe’s subsidiaries sued BCE for claims related to BCE’s decision to stop funding Teleglobe. Teleglobe’s subsidiaries sought various communications between BCE and its attorneys leading to the decision to cease funding. BCE’s in-house attorneys represented both BCE and Teleglobe in the decision. BCE asserted the attorney-client privilege. Teleglobe’s subsidiaries argued that the privilege did not apply because the privilege was held by the entire BCE family of corporations, not just the BCE parent. The district court ruled in favor of Teleglobe’s subsidiaries, finding that BCE could not use the attorney-client privilege to shield the requested communications. BCE appealed.
Rule of Law
Issue
Holding and Reasoning (Ambro, J.)
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