SDNY Ruling Highlights Privilege Risks in Client Use of Generative AI
March 03, 2026 —
Christopher J. Olsen, Freddy X. Muñoz & Gary M. Stein - Peckar & Abramson, P.C.Artificial intelligence is quickly becoming a go‑to tool for aggregating and summarizing large volumes of data, formulating and testing arguments, and even sketching litigation strategies. But a recent ruling from the Southern District of New York serves as a stark warning: when clients turn to generative AI for legal strategy, they may be unknowingly turning privileged information over to a third party and then creating documents that may later be discoverable in litigation. In a closely watched bench decision, Judge Rakoff ruled that AI‑generated documents created by the target of a criminal investigation using Anthropic’s Claude were not privileged despite being generated with information learned from his attorneys to support his potential legal defense and then shared with his counsel. The decision highlights the unresolved and increasingly consequential intersection of AI, privilege, and discovery.
Facts
Bradley Heppner received a grand jury subpoena and hired attorneys at Quinn Emanuel to represent him. After learning he was a target of the investigation, but before he was arrested, he created 31 documents with Claude using information from his attorneys to outline a potential defense strategy. He was later arrested on charges of securities and wire fraud, and federal agents seized his electronic devices, which contained the 31 documents that had been provided to his attorneys. Mr. Heppner argued that the documents were created to prepare his potential defense strategy in anticipation of an indictment, but he conceded that he made the decision to prepare the reports on his own, i.e., not at the direction of counsel. He nevertheless claimed the documents were protected from disclosure by the attorney-client privilege and work product doctrine; the government moved to overrule the objections.
Reprinted courtesy of
Christopher J. Olsen, Peckar & Abramson, P.C.,
Freddy X. Muñoz, Peckar & Abramson, P.C. and
Gary M. Stein, Peckar & Abramson, P.C.
Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Muñoz may be contacted at fmunoz@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
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Benchmark Litigation Recognizes Multiple Snell & Wilmer Offices and Attorneys in 2026 Rankings
December 02, 2025 —
Snell & WilmerPHOENIX - Snell & Wilmer is pleased to announce that Benchmark Litigation, a publication that focuses exclusively on dispute resolution and litigation, has once again recognized multiple Snell & Wilmer offices, as well as eleven of the firm’s attorneys, in its annual U.S. edition rankings issue.
Benchmark Litigation is the only publication on the market to focus exclusively on litigation work. Benchmark compiles its results from a culmination of a six-month research period where researchers conduct extensive interviews with litigators and their clients to identify the leading litigators and firms. During these interviews, researchers examine recent casework handled by law firms and ask individual litigators to offer their professional opinions on peers. Firms cannot pay to be recommended for the guide.
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Snell & Wilmer
Successful KF Defense Results in Dismissal with Prejudice
January 13, 2026 —
Elliott Wright & William "Pat" Durland - Kahana FeldKahana Feld Partner Elliott Wright and Senior Counsel William “Pat” Durland secured a major victory for their client with a complete dismissal of all claims by establishing that the Plaintiff failed to satisfy the Texas Tort Claims Act’s jurisdictional prerequisites through our Plea to the Jurisdiction.
Our Plea to the Jurisdiction demonstrated that governmental immunity applies unless a Plaintiff can prove a clear and unambiguous statutory waiver, and that the Plaintiff bears the burden of pleading and proving such a waiver. In this case, we showed that the Plaintiff provided no timely statutory notice as required by §101.101 of the TTCA and the City Charter’s six-month notice requirement, making jurisdiction impossible to invoke. Without proper notice—formal or actual—the court has no power to hear the case, and the defect cannot be cured by amendment.
Reprinted courtesy of
Elliott Wright, Kahana Feld and
William "Pat" Durland, Kahana Feld
Mr. Wright may be contacted at ewright@kahanafeld.com
Mr. Durland may be contacted at wdurland@kahanafeld.com
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Compass, Zillow Take Feud Over Home Listings Into NYC Court
December 15, 2025 —
Chris Dolmetsch & Paulina Cachero - BloombergTwo heavyweights in the US residential real estate market, Compass Inc. and Zillow Inc., are facing off in a New York courtroom in a legal battle that could reshape the future of how homes are marketed and sold in the country.
Compass, the largest residential brokerage, sued Zillow in June claiming the real estate site acts anticompetitively by banning listings that were publicly marketed elsewhere first. A four-day hearing began Tuesday before a federal judge who will decide whether to temporarily block Zillow’s policy while the lawsuit proceeds.
The dispute is the latest in a long-running fight over who controls the most valuable asset in real estate: information. Compass has built a private listings network allowing sellers to quietly market homes with its own agents before posting on public multiple listing services (MLS). It argues the strategy lets sellers test demand and pricing without leaving a record on the MLS that could hurt future sales.
Reprinted courtesy of
Chris Dolmetsch, Bloomberg and
Paulina Cachero, Bloomberg Read the full story...
What if the Supreme Court Overrules the Reciprocal Tariffs? Plan Now for Refunds, Protests, and Contract Reconciliation
December 15, 2025 —
Brett W. Johnson, T. Troy Galan, Cole Craghan & Thomas Williams - Snell & WilmerAs the U.S. Supreme Court weighs the legality of President Trump’s “reciprocal tariffs,” companies that sell goods internationally face a pivotal inflection point. If the tariffs are struck down, the decision will not simply unwind a trade policy — it may trigger a complex refund process involving billions of dollars in tariffs. This will lead to disputes over who receives repayment, and potential friction between suppliers and customers whose contracts passed tariff costs downstream.
Such disputes appear to be on the horizon, as the U.S. Supreme Court considered oral arguments on the reciprocal tariffs on November 5, 2025, and several Justices signaled their skepticism about whether the International Emergency Economic Powers Act (IEEPA) permits the president to impose tariffs unilaterally. While the outcome remains uncertain, businesses that act now to preserve refund rights and clarify contractual obligations may be best positioned to receive refunds and avoid costly disputes if the tariffs are ordered to be repaid.
Reprinted courtesy of
Brett W. Johnson, Snell & Wilmer,
T. Troy Galan, Snell & Wilmer,
Cole Craghan, Snell & Wilmer and
Thomas Williams, Snell & Wilmer
Mr. Johnson may be contacted at bwjohnson@swlaw.com
Mr. Galan may be contacted at tgalan@swlaw.com
Mr. Craghan may be contacted at ccraghan@swlaw.com
Mr. Williams may be contacted at twilliams@swlaw.com
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AI in AEC 2026: Doing AI Right and Rethinking Your Business Model
April 08, 2026 —
Aarni Heiskanen - AEC BusinessThe sixth AI at the AEC 2026 conference showcased the evolution of AI discussions. There were, naturally, many talks about software and technologies. But more than before, there were conversations about realizing AI’s business value.
Two themes appeared in nearly every session I attended. First, many companies struggle with AI adoption, not because they lack tools, but because their thinking isn’t right. Second, when AI works, it disrupts the business model that brought them there.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
New LA Home Designs, Reimagined By Fire
January 13, 2026 —
Patrick Sisson - BloombergOne year after wildfires tore through neighborhoods in Los Angeles County, killing at least 31 people and destroying more than 10,000 buildings, architects and developers are rethinking what home looks like in LA, and how resilient residential architecture evolves.
Recovery from the costly disaster is a long way away. So far, hundreds of new homes have been submitted for permitting, but it’s a process
shaping out to be an uneven one, based on damage, insurance and wealth. Affected homeowners are grappling with the details of fire-resilient construction and landscaping techniques, along with some more fundamental questions about what their communities should look like.
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Patrick Sisson, Bloomberg
California Enacts Change Order Fair Payment Act
March 24, 2026 —
Michael J. Baker - Snell & WilmerFor private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:
- Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
- Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.
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Michael J. Baker, Snell & WilmerMr. Baker may be contacted at
mjbaker@swlaw.com