This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

self-study / Legal Ethics

Mar. 6, 2026

Heppner case shows client AI interactions can break attorney client privilege

William Slomanson

Distinguished Professor Emeritus
Thomas Jefferson School of Law

Email: bills@tjsl.edu

See more...

AI and privilege waiver

Court decisions involving generative artificial intelligence focus on misuse of AI by attorneys (and some judges). For case examples, sanctions, and legislative quests, see Slomanson, "AI Hallucinations and the Bar," 39 Cal. Litigation Rptr. 1 (forthcoming, 2026). The following AI case illustrates how a client can waive any privilege. The Feb. 10, 2026, Memorandum decision by a New York federal district court is the nation's first case to address the novel question of whether a party's interaction with AI waives the attorney-client and work product privileges. U.S. v. Heppner, ____ F.Supp.3d ____, 2026 WL 436479 (S.D. NY, Feb. 17, 2026) [hereinafter Heppner].

Before dissecting this novel decision, the novelty of AI merits a brief comment about the associated technology. An AI system is one "that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments." "Artificial Intelligence & Responsible Business Conduct," OECD (2019), p. 1,. Within that system, "'generative artificial intelligence' means ... [a model] that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data." Cal. Senator Tom Umberg, Legislative Council's Digest, "Generative artificial intelligence: attorneys and arbitrators," Senate Bill 574 § 2(B) (Jan. 30, 2026), [hereafter SB-574].
Heppner is an executive in several corporate entities. He pled not guilty to federal fraud charges. The FBI executed a search warrant at Heppner's home and seized numerous documents and electronic devices. Thirty-one of those documents memorialize communications that Heppner had with Anthropic's virtual assistant Claude. Without any suggestion from counsel that he do so, Heppner thereby prepared reports that outlined defense strategy, e.g., what he might argue with respect to the facts and the law in anticipation of a potential indictment. Heppner, *1. The Government and Heppner's counsel agreed that the prosecutors would segregate the AI documents, but not inspect them, pending resolution of Heppner's privilege claims. Id., *2.
The Heppner trial judge granted the Government's request, seeking to access those documents. They were not protected from government inspection via either the attorney-client or work product limitations on discovery. Heppner, *1. Heppner is not alone. He is one of the planet's estimated 800 million people who initiate Anthropic AI searches each week. Over half of this nation's residents have access to Claude. See Mary Meerker, et al., Trends_Artificial_Intelligence.pdf"Trends_Artificial_Intelligence," at 59 & 55. 

The core of the attorney-client privilege claw back argument was that "(1) Heppner had inputted into Claude ... information that Heppner had learned from counsel; (2) Heppner had created the AI Documents for the purpose of speaking with counsel to obtain legal advice; and (3) Heppner had subsequently shared the contents of the AI Documents with counsel." Heppner, *2. The court reasoned that "the AI Documents lack ... [the usual] elements of the attorney-client privilege. 

First, the AI Documents are not communications between Heppner and his counsel. ... [T]he discussion of legal issues between two non-attorneys is not protected by attorney-client privilege." Id. The judge nevertheless considered a related assertion: "some commentators have argued that whether Claude is an attorney is irrelevant because a user's AI inputs, rather than being communications, are more akin to the use of other Internet-based software, such as cloud-based word processing applications." Id. The court's read, however, was that "all '[r]ecognized privileges' require, among other things, 'a trusting human relationship,' such as, in the attorney-client context, a relationship 'with a licensed professional who owes fiduciary duties and is subject to discipline.'" Id., citing Distinguished Professor of Law Ira Robbins, "Against an AI Privilege," JOLT Digest, Harvard Law School (Nov. 7, 2025).          

Second, the communications memorialized in the AI documents were not confidential. Heppner had communicated with third-party Claude. Furthermore, Anthropic's written privacy policy is that Anthropic collects data on user inputs and Claude's outputs, over which Anthropic reserves the right to disclose such data to third parties--specifically including governmental regulatory authorities (citing Anthropic's privacy policy). Heppner, *2.

Third, Heppner did not communicate with Claude for the purpose of obtaining legal advice. But the court acknowledged that "[t]his issue perhaps presents a closer call because Heppner's counsel asserts that Heppner communicated with Claude for the 'express purpose of talking to counsel.'" Id., *3. So, the privilege door is not sealed shut, where counsel directs a client to consult an AI platform. Thus, "[h]ad counsel directed Heppner to use Claude, Claude might arguably be said to have functioned in a manner akin to a highly trained professional who may act as a lawyer's agent within the protection of the attorney-client privilege."

The final coffin nail was that "AI Documents 'would not be privileged if they remained in [Heppner's] hands,' [and] they did not 'acquire protection merely because they were transferred' to counsel." Id., 3. Likewise in California: "that which was not privileged in the first instance may not be made so merely by subsequent delivery to the attorney." Chadbourne, Inc. v. Superior Court of the City and County of San Francisco, 60 Cal.2d 723, 732 (Cal., 1964).

The use of electronic communications does not modify precedent. A "communication between persons in a relationship ... does not lose its privileged character for the sole reason that it is communicated by electronic means or because persons involved in the delivery, facilitation, or storage of electronic communication may have access to the content of the communication." Cal. Evid. Code § 917(b). But California's Evidence Code provisions are never broadly applied--as evinced by the Heppner result. This litigant's unwitting attempt to expand the attorney-client privilege regime was a fool's errand. The legal terrain lowers that shield "[b]ecause privileges 'prevent the admission of relevant and otherwise admissible evidence,' [so] they should be narrowly construed." People v. Sinohui, 28 Cal.4th 205, 212 (Cal., 2002). Heppner's ploy, notwithstanding today's expanding technological applications to the law, presented a bridge too far.   

The Heppner work product claim suffered a like rejection. The court reasoned that "The[se] AI Documents do not merit protection under the work product doctrine because, even assuming, arguendo, that they were prepared 'in anticipation of litigation,' they were nevertheless not 'prepared by or at the behest of counsel,' nor did they reflect defense counsel's strategy." Heppner, *4. Nor was Heppner acting as his lawyer's agent when he was communicating with Claude. Counsel stated that this defendant prepared the referenced documents via his own, independent misadventure.

Counsel's third strike hypothesized that the AI documents his client generated with Claude may be privileged because they "incorporated information that we had conveyed to Heppner over the course of our representation." Id., *4 n.3. But even if that information was in fact privileged, Heppner waived the privilege by sharing it with Anthropic. Claude was akin to a third party who was not in the immediate attorney-client loop.   

The legal horizon is now fraught with AI hallucinations; a new perspective about attorney sanctions; and now, Heppner's privilege waiver via generative AI. Counsel should advise clients that, when they communicate with virtual AI assistants, their "work product" is fair game for discovery. One hopes that unlike Heppner, we lawyers don't fall prey to Proverbs 23:8 --"A poor workman blames his tools."        

#1825

Submit your own column for publication to Diana Bosetti


Related Tests for Legal ethics

self-study/Legal Ethics

SEC at the door? Mind your ethics - and your client

By Alanna G. Clair, Shari L. Klevens

self-study/Legal Ethics

From Normandy to the bench: Justice Buck Compton's life of service

By Eileen C. Moore

self-study/Legal Ethics

Too sick to practice? Ethics rules still apply to attorneys

By Alanna G. Clair, Shari L. Klevens

self-study/Legal Ethics

Ethics of preparing legal opinions for third parties

By Alanna G. Clair, Shari L. Klevens

self-study/Legal Ethics

What lawyers can learn about cybersecurity ethics from 'The Good Wife'

By Joanna L. Mishler

self-study/Legal Ethics

Chutes and Ladders: The CJP & CJA