Legal Alert: New Colorado Supreme Court Decision Impacting the Right to Privacy of Financial Information in Discovery


On June 27, 2011, the Colorado Supreme Court sitting en banc issued its decision in Cedar St. Venture, LLC v. Judd (In re Dist. Ct.) announcing a new, comprehensive legal test for the discovery of records that may be potentially protected by the right to privacy. The underlying discovery dispute arose out of claims for legal malpractice and breach of fiduciary duty against a law firm and one of its partners. During discovery, the plaintiff requested financial documentation from the law firm regarding the partner’s compensation and the methodology used in determining the partner’s compensation. The law firm refused to produce the requested documentation and the plaintiff filed a motion to compel.

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