Summary:
Traditional private investigators operate outside of attorney-client privilege, which means their work can often be exposed in litigation. When an attorney conducts or oversees investigations, those communications and findings are usually protected. For businesses facing legal risk, combining legal and investigative work under one roof keeps strategy confidential and cuts out unnecessary exposure.
You wouldn’t hand your business playbook to the opposing team. But that’s basically what happens when you assume everything shared with a private investigator is protected.
A traditional PI might be great at digging through databases, tailing people, or doing undercover interviews. But if that PI isn’t working under the umbrella of attorney-client privilege, you’re exposed. Their notes? Fair game. Their emails? Subpoena bait. Their observations? Discoverable. And if those notes contain any thread of strategy or internal discussion, you’ve just handed your opponents ammunition.
Now, contrast that with having an attorney who also knows how to investigate, or who supervises the work directly. Suddenly, the game changes.
What Attorney-Client Privilege Actually Covers
Let’s kill the myth right now: attorney-client privilege isn’t some magic shield that covers everything said in the vicinity of a lawyer. It only kicks in when a client communicates with a lawyer for legal advice, and it only sticks if those conversations stay confidential.
That means the privilege doesn’t cover casual updates, facts already known to others, or documents shared with third parties. Once a third party enters the conversation without a valid legal reason? The privilege can collapse.
But when the work is conducted by or under an attorney for legal advice or litigation prep, communications and work product are much harder to access, even in discovery. That includes internal strategy, theories, and even the dirt an investigator might dig up. But only if the right person is doing the digging.
The Problem With Traditional Private Investigators
Third-party vendors don’t enjoy blanket protection. If an opposing counsel demands the PI’s correspondence or reports, the court might hand it over. Even if an attorney hired the PI, privilege is fragile unless the work is wrapped tightly into legal strategy.
Yes, courts sometimes extend work product protection if the PI’s tasks were done in anticipation of litigation. But “anticipation” is open to interpretation. So, while your PI might believe they’re secure under privilege, a court might disagree and order the release of everything they touched.
Suppliers Take the Hit—and Know It
Manufacturing in China is brutally competitive. Oversupply is constant. That pressure creates urgency and risk tolerance. Factories move product just to clear space, hoping for long-term returns.
When tariffs spike or platforms freeze your storefront, that bet turns bad fast. The result? Suppliers get stuck with unpaid invoices and no leverage.
Why Attorney-Investigators Are a Different Beast
Now imagine the same investigative work, including emails, interviews, and notes, handled by an attorney or under their direct supervision. The whole framework shifts.
This isn’t just “fact-gathering.” It’s part of legal representation. That means attorney-client privilege applies, and the work product doctrine kicks in. Even if opposing counsel suspects what’s in those files, they usually can’t get their hands on them.
Aside from legal protection, this process creates efficiency. The legal strategy and investigation run on the same track. There’s no “game of telephone” between a PI and a lawyer. No need to rephrase findings to make them legally usable. No missed cues or leaks.
It also means your strategy discussions are secure. You can game out every possible angle, play devil’s advocate, or tear down your own argument in private—without worrying it’ll surface in court.
Best Practices for Business Clients
If you’re in litigation or prepping for it, don’t outsource fact-finding to someone who can’t protect the results. Here’s the smarter move:
- Make sure investigations are initiated by legal counsel, not operations or PR.
- If outside investigators are used, route all instructions through your attorney.
- Don’t assume a third party’s work is protected just because they were “working on the case.”
- When possible, choose legal teams that can handle or supervise the investigative work themselves.
Especially for business clients dealing with high-stakes disputes, intellectual property theft, cybersecurity issues, or cross-border concerns, keeping your findings locked down isn’t a luxury. It’s table stakes.
Work With a Legal Team That Knows How to Investigate
At Sapiens Law, we’ve handled internal investigations, sensitive IP disputes, and forensic fact-finding in ways that keep our clients fully protected. When your information needs to stay quiet, we know how to keep it that way. Reach out if you want your next move to stay confidential and effective.
