Highlighted Case

Background

Terminated corporate employees brought breach of fiduciary duty action against board of directors and, after corporation's former shareholder transferred his stock to the employees, added corporation as a plaintiff. The Superior Court, Grafton County, Vaughan, J., denied plaintiffs' motion to disqualify defendants' law firm, and plaintiffs filed interlocutory appeal.

Holdings

After questions were transferred, the Supreme Court, Broderick, C.J., held that:
(1) a practical consequences framework was to be applied, when determining whether corporation under new ownership gained control over corporation's pre-existing attorney-client privilege with defendants' law firm, and
(2) corporation under new ownership had gained con-trol of attorney-client privilege with defendants' law firm, for purposes of determining whether law firm was disqualified from representing defendants.

Vacated and remanded.

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