Attorney-Client Privilege in Internal Investigations

Last year, the Supreme Court of North Carolina upheld a remarkable N.C. Business Court decision that severely weakened attorney-client and work product protections in the context of internal corporate investigations. See Buckley, LLP v. Series 1 of Oxford Ins. Co., NC, LLC, 382 N.C. 55 (2022). The Court permitted discovery of otherwise protected communications about an outside law firm’s internal investigation into harassment allegations because the company’s policies required the investigation. The Court concluded that it was done in the ordinary course of business and was not for purposes of legal advice. Now is a good time to discuss how the attorney-client privilege and work product doctrines apply in the context of internal investigations, especially in the wake of the Buckly decision.