Professional advisers: Difference between revisions
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{{a|confi||}}External [[law firm|lawyers]], auditors, accountants — those owing their clients [[fiduciary duties]], [[Confidence|confidences]] and (for [[law firm|lawyers]] at any rate) offering them the somewhat holey cloak of [[legal professional privilege]], such that one’s usual [[paranoia]] about the disclosure of [[proprietary data]], trade secrets and [[intellectual property]] can be safely set aside. You can tell your [[professional advisers]] your innermost thoughts — and your client’s — without a great risk that the cat contained therein will be let out of the bag. | {{a|confi||}}External [[law firm|lawyers]], auditors, accountants — those owing their clients [[fiduciary duties]], [[Confidence|confidences]] and (for [[law firm|lawyers]] at any rate) offering them the somewhat holey cloak of [[legal professional privilege]], such that one’s usual [[paranoia]] about the disclosure of [[proprietary data]], trade secrets and [[intellectual property]] can be safely set aside. You can tell your [[professional advisers]] your innermost thoughts — and your client’s — without a great risk that the cat contained therein will be let out of the bag. | ||
===Go on, hit me=== | |||
But let’s just say kitty got out on your [[law firm]]’s watch. Now, if you were minded to goad your client into a pointless argument — and it is a special kind of [[legal eagle]] who can resist the temptation for a cheeky troll every now and then — this “professional advisers” rider is your ticket to the races. | |||
All you need to do is quibble openly about whether you should be responsible if your professional advisers breach the agreement. | |||
STOP, STOP, STOP — I can see you all raising your hands to complain. “But, [[JC]], we can’t possibly be held responsible for the nefarious acts of a third party! It’s an outrage!” | |||
Quite so, my little starlings, quite so. But let’s step through this. | |||
FIRST: “our professional advisers” as legal eagle speak for “our lawyers” — and, if you’re on a seriously monster deal, your tax accountants. Confidentiality is the basic USP of a commercial lawyer. It is what, before anything else, they’re good at. that’s why [[legal professional privilege]] is a thing. “But just because they ''should'' be discreet doesn’t mean they ''will'' be, [[JC]] — ” Hush, my petal. This is also quite so. But bear with me. | |||
SECOND: The [[NDA]]’s dirty secret is that very rarely are any damages ''suffered'', let alone provably attributed to a breach of contract even when it ''is'' breached. This is why it most of them make such a big thing about prospect of [[equitable relief]] — [[Injunction|injunctions]] and so on. [[Damages]] are likely to be “an inadequate remedy” because often ''there won’t be any''. “But, [[JC]], that’s another ''factual'' assumption and you know we [[legal eagle]]s aren’t allowed to pay any attention to those — ” Hush, my petal: This, too, is quite so. But I haven’t finished. | |||
THIRD: If a professional adviser ''does'' breach confidence and ''does'' cause your client material damage you can, in the vernacular, ''sue its expensively upholstered arse off for professional negligence''. Not only do commercial law firms boast some of the deepest pockets in Christendom, but they are obliged to hold professional indemnity insurance for occasions such as this. Much of your undoubtedly eye-watering legal bill — the part of it that doesn’t go to upholstering that expensive arse in finest cloth Saville Row can produce — goes to meeting the insurance premia, so goes to covering that expensive arse in another way. | |||
{{sa}} | {{sa}} | ||
*[[Law firm]] | *[[Law firm]] | ||
*[[Legal professional privilege]] | *[[Legal professional privilege]] | ||
Revision as of 14:54, 3 February 2021
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NDA Anatomy™
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External lawyers, auditors, accountants — those owing their clients fiduciary duties, confidences and (for lawyers at any rate) offering them the somewhat holey cloak of legal professional privilege, such that one’s usual paranoia about the disclosure of proprietary data, trade secrets and intellectual property can be safely set aside. You can tell your professional advisers your innermost thoughts — and your client’s — without a great risk that the cat contained therein will be let out of the bag.
Go on, hit me
But let’s just say kitty got out on your law firm’s watch. Now, if you were minded to goad your client into a pointless argument — and it is a special kind of legal eagle who can resist the temptation for a cheeky troll every now and then — this “professional advisers” rider is your ticket to the races.
All you need to do is quibble openly about whether you should be responsible if your professional advisers breach the agreement.
STOP, STOP, STOP — I can see you all raising your hands to complain. “But, JC, we can’t possibly be held responsible for the nefarious acts of a third party! It’s an outrage!”
Quite so, my little starlings, quite so. But let’s step through this.
FIRST: “our professional advisers” as legal eagle speak for “our lawyers” — and, if you’re on a seriously monster deal, your tax accountants. Confidentiality is the basic USP of a commercial lawyer. It is what, before anything else, they’re good at. that’s why legal professional privilege is a thing. “But just because they should be discreet doesn’t mean they will be, JC — ” Hush, my petal. This is also quite so. But bear with me.
SECOND: The NDA’s dirty secret is that very rarely are any damages suffered, let alone provably attributed to a breach of contract even when it is breached. This is why it most of them make such a big thing about prospect of equitable relief — injunctions and so on. Damages are likely to be “an inadequate remedy” because often there won’t be any. “But, JC, that’s another factual assumption and you know we legal eagles aren’t allowed to pay any attention to those — ” Hush, my petal: This, too, is quite so. But I haven’t finished.
THIRD: If a professional adviser does breach confidence and does cause your client material damage you can, in the vernacular, sue its expensively upholstered arse off for professional negligence. Not only do commercial law firms boast some of the deepest pockets in Christendom, but they are obliged to hold professional indemnity insurance for occasions such as this. Much of your undoubtedly eye-watering legal bill — the part of it that doesn’t go to upholstering that expensive arse in finest cloth Saville Row can produce — goes to meeting the insurance premia, so goes to covering that expensive arse in another way.