Clawback Agreement

Clawback Agreement

Clawback Agreement

A clawback agreement establishes a procedure for recalling privileged material produced by mistake. It typically requires prompt notice, return or destruction by the receiving party, and sequestration pending resolution of any dispute over the claim.

Its protective force is substantially greater when entered as a court order under Federal Rule of Evidence 502(d), which makes the non-waiver binding in other federal and state proceedings.

Alternative Names:

Clawback Provision, Non-Waiver Agreement

Why it Matters?

In large productions, some privileged material will slip through regardless of review quality. A 502(d) order converts that near-certainty from a waiver crisis into a procedural step, and it permits less exhaustive and less expensive privilege review. It is among the cheapest and most valuable protections available, and it is still frequently overlooked.

Frequently asked questions

Why is a Rule 502(d) order better than a private agreement?

Why is a Rule 502(d) order better than a private agreement?

A private agreement binds only the parties. A 502(d) order makes the non-waiver effective in other federal and state proceedings, protecting against third parties asserting waiver later.

Does a clawback agreement excuse privilege review?

Does a clawback agreement excuse privilege review?

No. It protects against the inevitable escapes, but courts still expect a reasonable review, and repeated large-scale disclosures can undermine the protection.