Nature of the Case
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Facts
Attorney McElravy was suspected of mishandling of client funds. D, the senior partner at his San Diego law firm, asked two young associates to investigate McElravy's conduct. D eventually turned the matter over to outside counsel. The associates thereafter conducted their activities under the direction of this outside counsel. D also informed the state bar. A grand jury investigating McElravy subpoenaed the associates. When questioned they asserted the attorney client privilege based on D being the law firm’s attorney. The district judge ordered the associates to answer. The judge noted that the associates were never told they were working as the firm's attorneys and didn't bill the firm or record hours expended on the firm's behalf. They were merely fact-finding. D appealed.
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