The limits of the iniquity exception to legal professional privilege in case of entrapment (Pliego v Astor Asset Management 3 Ltd)
Dispute Resolution analysis: In this significant case concerning legal professional privilege and litigation conduct, the High Court addressed the limits of investigating alleged fraud through covert means. The claimants, pursuing a substantial stock-lending fraud claim, employed investigators who secretly recorded meetings with the defendants’ litigation solicitor under false pretences. While the court acknowledged a strong prima facie fraud case against the defendants, it held that the claimants’ entrapment tactics constituted an abuse of process. Rather than striking out the entire claim, the court adopted a balanced approach by striking out only the summary judgment application while allowing the substantive fraud claim to proceed. The case provides important guidance on the boundaries between legitimate fraud investigation and improper interference with legal professional privilege, emphasising that entrapment of an opponent’s legal representative crosses a fundamental line in civil litigation. Practical implications written by Lauren Godfrey of Gatehouse Chambers.