Australian Federal Court: ALS Limited Waived Legal Privilege Over McGrathNicol Report

• The Australian Federal Court found that ALS Limited waived legal professional privilege over most of a report prepared by McGrathNicol.
• The waiver occurred due to the company's disclosure of information in an Australian Securities Exchange announcement.
• The court ordered ALS Limited to produce the report for inspection, with certain portions redacted.
• The decision has significant implications for companies that have disclosed information in ASX announcements and may waive legal professional privilege over related reports.

In a significant ruling, the Australian Federal Court has found that ALS Limited waived legal professional privilege over most of a report prepared by McGrathNicol. The court's decision was made in the case of Korea Midland Power Co Ltd v ACIRL Quality Testing Services Pty Ltd (No 3) [2026] FCA 1019, where the applicant sought to inspect the McGrathNicol report as part of its proceedings against ALS Limited and ACIRL. The court ordered ALS Limited to produce the report for inspection, with only certain portions redacted due to their sensitive nature.

The Federal Court's decision highlights the importance of understanding when legal professional privilege is waived. In this case, ALS Limited disclosed information in an Australian Securities Exchange announcement that was also contained in the McGrathNicol report. This disclosure had the effect of waiving privilege over most of the report, allowing the applicant to access the information as part of its proceedings. The court's ruling underscores the need for companies to carefully consider their disclosures and ensure they do not inadvertently waive privilege over sensitive information.

The Federal Court's decision has significant implications for companies that have disclosed information in ASX announcements, potentially waiving legal professional privilege over related reports. Lawyers should be aware of this ruling and advise their clients accordingly, as it may impact the way they handle sensitive information and disclosures. The decision also highlights the importance of carefully considering the implications of disclosure on legal privilege, particularly in cases where companies are seeking to protect sensitive information.

Lawyers should be aware that the Federal Court's decision may have implications for clients who have disclosed information in ASX announcements, potentially waiving legal professional privilege over related reports.

Source: Original reporting via Australasian Lawyer