On August 3, 2026, Justice Reed of the New York County Commercial Division issued a decision in Python Fin. Solutions, Inc. v. SDCK I LLC, 2026 NY Slip Op. 51192(U), holding that a party that failed adequately to justify a privilege claim loses it, explaining:
New York courts generally favor open and liberal discovery. However, the CPLR establishes three categories of protected materials: privileged matter, attorney work product and trial preparation materials.
The attorney-client privilege shields from disclosure confidential communications between an attorney and client made for the purpose of obtaining legal advice. It is narrowly construed to not be in tension with the court’s policy favoring liberal discovery. The party asserting the privilege bears the burden of establishing entitlement to the privilege, as well as the burden of showing confidentiality has not been waived.
Here, a review of the in-camera submission makes clear that plaintiff fails to assert anything more than boilerplate claims of privilege, which are insufficient as a matter of law. CPLR 3122 requires that plaintiff adequately set forth grounds to assert a privilege, either in a privilege log, or by an affidavit of a person with personal knowledge. Here, plaintiff does neither and it is unclear to this court which specific privilege or other protection is being asserted. Plaintiff fails to identify the nature of the privilege being asserted and the privilege log fails to provide the general subject matter of the documents as required by CPLR 3122(b). Further, in the submission provided to the court for in-camera review, plaintiff fails to submit an affidavit attesting to the authenticity of the documents and confirming the factual basis for the privilege claim or any other claimed protection.
In sum, plaintiff fails to meet its burden of adequately establishing entitlement to privilege. Communications do not automatically obtain privilege status merely because they are created by, involve, or are communicated by, an attorney.
(Internal quotations and citations omitted).
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