Why keep a privilege log for your risk management department?
A privilege log is a document that lists privileged, confidential information that a party withholds from disclosure based on possible or actual litigation, whether currently or in the future. Risk management privilege logs can be beneficial in several ways:
Protection of Privileged Information.
By creating a privilege log, an organization can protect confidential or
sensitive information from disclosure during litigation. The privilege log
can identify the specific documents ordatan that are subject to
privilege, making it easier to manage and protect this information.Failure to create a privilege log may result in a Waiver of Privilege. A
Waiver of Privilege is a failure to properly identify and withhold
privileged information subjecting the information to the legal discovery
process during litigation. This means that the information may be
disclosed to the opposing party and potentially used against the
organization during litigation.
Strategic Advantage and Disadvantage.
A privilege log can also be used as a strategic tool during litigation. By
identifying the specific documents or information that are subject to
privilege, an organization can give its attorneys a better understanding of
the strengths and weaknesses of their case and make informed decisions
about which information to disclose and which to withhold.A significant disadvantage of not having a privilege log is that the
the organization may not have a clear understanding of the strengths and
weaknesses of its case, putting them at a strategic risk during litigation
from being unable to make informed decisions about what information to
disclose or withhold.An order by the Court disallowing privilege on a document may place
the organization and brand at risk depending on the information
contained within the document and a compensable risk to the legal
litigation outcome.
Cost Management.
A privilege log can help decrease production costs by decreasing search
and research times for targeted items during the discovery process. This is
because the privilege log allows an organization to identify and withhold
privileged information more efficiently, reducing the number of documents
that need to be reviewed and produced.Without the organizational benefits of the privilege log, a loss of control
over the production process may decrease available resources that could
be placed toward process improvement activities, risk assessments and
mitigation strategies, and safety programs.