In re Apollo Health St. Inc.
Mar
23
2012
Ruling
Petitioning creditors' assertion of reliance on advice of counsel defense to bad faith dismissal of involuntary case resulted in waiver of attorney client privilege from pre-filing period through hearing date.
Procedural posture
At issue in this involuntary bankruptcy was to what extent the attorney- client privilege was waived as to attorney-client communications between the petitioning creditors and predecessor counsel if the petitioning creditors raised a reliance on advice of counsel defense to a bad faith filing charge under 11 U.S.C.S. § 303(i).
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Court
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