Transcript A closer look at standards of relevance and materiality of evidence

UIA 58TH CONGRESS - INTERNATIONAL ARBITRATION
The art of the Redfern Schedule:
A closer look at standards of relevance and materiality of
evidence and the law applicable to privilege
Friday 31st October 2014
Peter Rosher
Partner
Solicitor (England & Wales) & Avocat à
la Cour (Paris)
Introduction
1. Relevance and
materiality standards
1. Standards de pertinence
et d’importance relative
2. Legal privilege
2. Le secret professionnel
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1. Relevance and materiality standards
Case Study : Scenario 1 /
1. Standards de pertinence et importance relative
Cas Pratique : Scénario 1
Buyer / Acquéreur
(French Company)
Seller / Vendeur
(UK Company)
Target / Société cible
(German Subsidiary)
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How does the Claimant prove its case? /
Le demandeur : comment peut-il établir sa preuve ?
• Relevance and materiality
• Pertinence et importance
relative
• Which documents would
you want to access?
• Quels documents
demanderiez-vous?
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Obstacles to disclosure /
Obstacles à la divulgation
• Key evidence is possessed by
the other side
• Les pièces essentielles sont
détenues par la partie adverse
• Burden of proof and duty to
disclose evidence
• La charge de la preuve et
l‘obligation de divulguer des
pièces
• Uncertainty and difficulty in
establishing relevance and
materiality
• L’incertitude et la difficulté
d’établir la pertinence et
l’importance relative
• “Fishing expeditions”
• « La pêche aux documents »
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Example Redfern Schedule
• You advise:
• The Claimant
• The Respondent
• Vous conseillez :
• Le demandeur
• Le défendeur
• How would you convince the
Tribunal?
• Comment convaincriez-vous le
Tribunal?
• You are the arbitrator
• What do you decide ?
• Vous êtes l’arbitre
• Que décidez-vous ?
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Example Redfern Schedule
Document or
category of
documents
Document ou
catégorie des
documents
The minutes of
Respondent’s
June 2012
executive
committee meeting
relating to profit
forecasting of
Target company.
Respondent’s Objections
Relevance and
materiality
Possession of
Documents
Pertinence et
importance relative
Possession
des documents
Respondent’s defence
is (in part) that it made
no misrepresentation
and took reasonable
steps to make an
honest forecast.
This meeting
was referred to
by letter X. It is
highly likely that
minutes were
taken of that
meeting.
The minutes of Respondent’s June 2012
executive committee meeting are not relevant
to the issues in the present dispute.
These
documents are
not in the
Claimant’s
possession.
Accordingly, Respondent objects on the
grounds of :
Objections du défendeur
The Minutes of the
executive committee
meetings could shed
light on the extent to
which Respondent
believed in the viability
of the profit forecasts it
submitted prior to the
SPA.
Décision
du
Tribunal
The minutes of this meeting relate to other,
unrelated corporate governance issues which
are commercially sensitive and confidential.
- Lack of sufficient relevance to the case or
materiality to its outcome (Article 9(2)(a) of
the IBA Rules.
- Grounds of commercial confidentiality
(Article 9(2)(e) IBA Rules).
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Arbitral
Tribunal’s
Decision
???
2. Different standards of legal privilege
Case Study : Scenario 2 /
2. Standards différents du secret professionnel
Cas Pratique : Scénario 2
Buyer / Acquéreur
(French Company)
Seller / Vendeur
(UK Company)
Target / Société acquise
(German Subsidiary)
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Legal Privilege – UK
•
•
Legal privilege:
o A right which clients are free
to waive
o Is strictly attached to the
content of the communication
rather than the author or the
recipient
o Documents drafted by
lawyers or in-house counsel
may be covered by legal
privilege
« Legal privilege »:
o Un droit du client auquel il peut
librement renoncer
o Est attaché au stricte contenu
de la communication, non à la
personne de l’auteur ou du
destinataire
o Les documents établis par les
avocats et les « in house
lawyers » bénéficient
indifféremment de cette
protection
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« Secret Professionnel » – France
•
•
Professional Secret:
Secret professionnel:
o Une obligation d’ordre public à la
charge des avocats
o Protège les avis juridiques et tous
les documents qui en sont le
support, y compris mails et
agenda de l’avocat
o Seul l’avocat est soumis au secret
professionnel, les juristes
d’entreprise ne le sont pas
o L’avocat ne peut en être relevé
par son client
o Duty of all lawyers which is a
question of public policy
o Protects legal opinions, all
supporting documents in lawyers’
possession including emails and
calendar
o Whilst lawyers are bound by the
duty of professional secret, inhouse counsel are not
o Waivers by client have no legal
effect on lawyers’ duties
.
.
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Example Redfern Schedule (2)
Document or
category of
documents
Document ou
catégorie des
documents
The minutes of
Respondent’s
August 2012
meeting with inhouse counsel.
Relevance and
materiality
Possession of
Documents
Respondent’s Objections
Objections du défendeur
Pertinence et
importance relative
Possession des
documents
Respondent’s defence is
(in part) that it made no
misrepresentation and
took reasonable steps to
make an honest profit
forecast forecast.
This meeting was
referred to by letter
X. It is highly likely
that minutes were
taken of that
meeting.
The Minutes of the
meetings with counsel
will demonstrate the
extent to which
Respondent took legal
advice on
misrepresentation and
therefore whether it
made its representation /
warranty in good faith.
These documents
are not in the
Claimant’s
possession.
Décision du
Tribunal
The minutes of Respondent’s August
2012 executive committee meeting
are covered by its right of legal
privilege. During the course of this
meeting, the Respondent took legal
advice from its in-house counsel on a
ranger of legal issues in relation to the
transaction. The minutes of this
meeting cannot therefore be disclosed
as a matter of public policy in UK law.
Accordingly, Respondent objects on
the grounds of :
- Grounds of legal privilege (Article
9(2)(b) IBA Rules).
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Arbitral
Tribunal’s
Decision
???
Choosing privilege standards in International Arbitration /
Choisir les standards de secret professionnel en arbitrage international
•
Arbitration – no law of the forum
•
Arbitration – aucune loi du for
•
Which standard should apply?
•
Quel standard devrait s’appliquer?
•
You represent :
– The Claimant
– The Respondent
•
Vous conseillez:
• Le demandeur
• Le défendeur
•
How would you convince the Tribunal?
•
Comment convaincriez-vous le
Tribunal?
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Choosing privilege standards in International Arbitration (2) /
Choisir les standards de secret professionnel en arbitrage international
•
You are the arbitrator
– How would you decide?
Methods of determining the standard :
•
•
•
•
Directly chosen by the parties;
Governing law of the contract;
Law of the arbitral procedure; or
“Centre of gravity” of the arbitration.
Other issues to resolve:
• Uniform or Distributive application?
• Most or Least favoured law?
“Ad hoc” choice
•
Vous êtes l’arbitre
• Comment décideriez-vous ?
Les méthodes de détermination du
standard :
• La loi choisie par les parties;
• Le droit applicable au contrat;
• Le droit applicable à la procédure
arbitrale; ou
• Le « centre de gravité » de l’arbitrage.
Autres questions à résoudre:
• Une application uniforme ou
distributive?
• La loi la plus ou la moins favorable?
Un choix « ad hoc » de l’arbitre
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Conclusion
• A movement towards
conciliation between Civil
and Common Law
traditions?
• Un mouvement vers une
conciliation entre les
traditions de Droit Civil et
Common Law?
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