Attorney-client privilege doesn’t extend to the property manager

privilege is only between the association and its attorney. If the property manager is designated as the “go to person” for contact, nothing the association discloses to the attorney remains confidential; it has been disclosed to a third party. All discussions, documents, papers and advice given by the attorney to the manager for relay are open for others to see, including those who might sue the association. None of it is protected by the attorney-client privilege.

The privilege of confidentiality applies to all discussions between an attorney and client. Business and Professions Code Section 6068(e)(1) states that the attorney is to “maintain inviolate the confidence, and at every peril to himself or herself to preserve the secrets, of his or her client.” If an attorney breaches that duty he or she could be subject to discipline by the California State Bar and a malpractice lawsuit.

If the manager is asked to discuss board strategies, litigation, business matters, consequences of management actions or anything else that might be confidential with the attorney, then none of the discussions are privileged. Any information relayed by the manager as coming from the attorney is also no longer protected by the privilege of confidentiality. Attorneys advising boards in situations like this are well aware their conduct is a breach of confidentiality and destroys privileges that would otherwise attach to their advice.

Not only does the association lose the protections for its “conversations” with the attorney through the property manager, but it also is spending association assets for advice that is not being given to it directly. Information passed along by the manager could be misinterpreted, exposing the association to liability.

On a related note, California lawyers are not required to carry professional liability insurance, and must inform their clients of this at the time a retainer agreement is entered into. Boards have a duty to inquire about this before hiring an attorney or firm. Glassman is an attorney specializing in corporate and business law. Vanitzian is an arbitrator and mediator. Send questions to P.O. Box 10490, Marina del Rey, CA 90295 or email noexit@mindspring.com.