Alex Is a Transactional Attorney and Does Not Do Litigation

Alex is a transactional attorney and does not do litigation. Bill is a litigator, but knows Alex. Alex has a client who wants to sue Debtor to recover money and principal owed under a loan to Debtor. Alex refers the client to Bill, and Bill files suit against Debtor on behalf of the client. Other creditors then begin suing Debtor for other outstanding loans. One of the other creditors is another client of Alex, and this second client sues Alex, claiming that Alex negligently encouraged the second client to make the loan to Debtor. During the second creditor's suit, a subpoena is served on Bill's law firm seeking any non-privileged records (including billing statements) related to the first creditor's lawsuit (filed by Bill) against Debtor. Bill instructs his paralegal to obtain copies of all billing statements up to and including the month in which the suit was filed and to redact all entries on and after the date the first creditor's lawsuit was filed. The redacted versions are then produced in response to the subpoena. Why were the billing statements produced with some information redacted?

A) Because Bill did not want the second creditor's attorney to see the work performed for the first creditor after the date of filing.
B) Because an exception to the confidentiality rules exists for compliance with a court order, but the work-product rule protects the entries on and after the date of filing.
C) Because an exception to the confidentiality rules exists for compliance with a court order, but the attorney-client privilege protects the entries on and after the date of filing.
D) None of the above.

Correct Answer:

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