14. Kovel Privilege

• U.S. v. Kovel, 296 F.2d 918 (2d. Cir. 1961)

• Under certain circumstances (investigation of potentially illegal or questionable activities), a lawyer may shield a non-testifying accountant or other business expert under the Kovel rule.

• This rule extends the attorney-client privilege to accountant-client communications.

• Kovel Privilege rule also extends to the work product developed when the accountant is hired in conjunction with the legal services.

• The party claiming the privilege bears the burden of proving the existence of the factors required to sustain it:

  • Various protective measures reviewed in a case become vital to preserve the extension of the privilege to accountants and other business experts.