http://www.austlii.edu.au/au/cases/vic/VSC/2010/532.html
DISCOVERY AND INSPECTION – Litigation privilege – Claim for indemnity under insurance policy – Appointment of assessor by insurer – Whether litigation was contemplated – Whether contemplation of litigation accounts for documents having been made – Question of fact – Test to be applied – Order for inspection made.
25 What does the law look to in an application such as this?
26 We are here concerned with the aspect of professional privilege known as litigation privilege. The law will regard as privileged from production the confidential communications that pass between the defendant and third parties that are made for the dominant, if not sole, use in litigation that is then existing or might reasonably be expected, anticipated or reasonably in contemplation: see Esso Australia v FCT[1] and see s 119 Evidence Act 2008 (Vic). The underlying rationale of the common law of legal profession privilege was stated in Baker v Campbell[2] and reaffirmed in Esso Australia Resources and FCT.[3] That is, a person is entitled to seek legal advice in the conduct of his affairs and legal assistance for the purpose of conducting actual or anticipated litigation without being prejudiced by having to disclose those communication But against that, there lies the policy and the desirability in the interests of justice in obtaining access to the facts relevant to the issues in order to get to the truth of the matter. Thus, claims for privilege ought to be carefully examined to ensure the integrity of the discovery process.
27 Thus, there are two questions to be asked. First, was litigation either pending or in contemplation? Secondly, did the communication or documentation come into existence for use in or in relation to pending or contemplated litigation? These are questions of fact.