Judge examined documents produced on subpoena to see which were privileged
The New South Wales Supreme Court has found enough residual uncertainty regarding whether client legal privilege covered certain documents produced in response to a subpoena in a commercial arbitration matter, which warranted an examination of their unredacted versions.
In Martinus Rail Pty Ltd v Qube RE Services (No. 2) Pty Limited in its capacity as trustee of the Moorebank Industrial Terminals Assets Trust [2026] NSWSC 316, the defendant initiated arbitration in June 2025, with claims against the plaintiff.
In line with permission from the arbitrator and leave from the NSW Supreme Court, the plaintiff issued a subpoena to the defendant’s consultant, which responded by producing documents.
The defendant, which received first access to the documents, claimed client legal privilege over four entire documents and portions of 17 more documents, specifically the redacted portions of:
On 11 March 2026, the plaintiff moved for general access to the documents the consultant had produced. The plaintiff asserted that the defendant failed to articulate or establish its privilege claims.
The plaintiff did not want the judge to examine the documents, which would allegedly impact transparency. According to the plaintiff, if the judge did proceed with the examination, he should do so in the privacy of his chambers, not in the court.
The defendant preferred that the judge examine the documents in open court to give it an opportunity to make further submissions regarding the documents.
Justice Peter Brereton of the Supreme Court of New South Wales issued orders seeking to:
Brereton saw some evidentiary basis in the privilege claims. He acknowledged that examining the documents would mean that he would base his rulings on evidence the plaintiff had not seen. However, he found that inevitable whenever exercising his examination power.
Brereton explained that he would be in a better position to issue the correct rulings if he had examined the documents. He found that the examination would be manageable, given the number of documents, and would just as likely benefit the plaintiff as disadvantage it.
Brereton examined the documents in his chambers to avoid risking an additional denial of procedural fairness. In his examination, he considered the following matters: