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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=47184 Magistrate Judge Katz A DISCOVERY dispute concerned whether plaintiffs waived the attorney-client privilege regarding certain communications with their attorneys. The underlying action arose out of the modification of the bylaws of a Liechtenstein foundation, which resulted in a change in the distribution of the assets of the foundation. Plaintiffs claimed that the modification was the result of fraud and undue influence. The court ruled that the privilege was waived, determining that plaintiffs, who are seeking to avoid the preclusive effect of the Liechtenstein arbitration by arguing that they had no choice but to participate, placed the advice of their counsel in issue. The court noted that plaintiffs have, to some degree, explicitly invoked their attorneys’ advice on that subject, adding that there was also an implied waiver of the privilege, finding that the issue of whether plaintiffs were compelled to participate in the Liechtenstein arbitration may be, but is not necessarily, an unambiguous matter of Liechtenstein law.

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