American Zurich Ins. Co. v. District Court (Todd) [03/13/12] 2012 MT 61 Generally, the attorney-client privilege extends only to communications between an attorney and a client, though it may extend to another party involved in a joint effort with respect to a common legal interest.  The privilege does not extend to correspondence issued by an insurer’s attorney to the insurer’s adjuster, when the adjuster shares that letter with the employer.  The employer is not a co-litigant, it has no liability in a workers’ compensation claim, it is not a party to the action, and it has no shared common interest with the insurer in the adjustment of the claim.  The adjuster has authority to act on behalf of the insurer pursuant to § 39-71-107, MCA, including the authority to waive the attorney-client privilege by sharing the attorney’s letter with the employer.

American Zurich Ins. Co. v. District Court (Todd) [03/13/12] 2012 MT 61 Waiver of the attorney-client privilege by voluntary disclosure does not necessarily waive the confidentiality of attorney work product.  The purpose of the attorney-client privilege is to protect confidential communications, thereby promoting the attorney-client relationship and the functioning of the legal system.  The purpose of the work-product doctrine is to protect the mental impression and opinions of counsel from disclosure to opposing counsel and his client.  The employer being a disinterested third party precluded by law from participating in the adjustment of the workers’ compensation claim, and with an overlapping relationship with its insurer and the claimant, there could be no reasonable expectation that the insurer’s attorney’s work product correspondence would be kept confidential by sharing it with the employer.