1E9Ct5D

(b)Inadvertent Disclosure. When made in a federal proceeding or to afederal office or agency, the disclosure does not operate as a waiver in afederal or state proceeding if:(1) the disclosure is inadvertent;(2) the holder of the privilege or protection took reasonable steps toprevent disclosure; and(3) the holder promptly took reasonable steps to rectify the error,including (if applicable) following Federal Rule of CivilProcedure 26 (b)(5)(B).In-house counsel has a safe harbor under Federal Rule of Evidence 502, which protectsthe inadvertent disclosure of information so long as counsel took reasonable steps toprevent it and attempted to rectify the error. Federal Rule of Evidence 26(b)(5)(B)allows counsel to reclaim documents that have already been produced by notifying theparty who inadvertently received them. After learning of the inadvertent disclosure, theparty who received the information must return, sequester, or destroy the specifiedinformation.X. Role of Manufacturer, Defense Counsel and InsurerSituations such as the one presented in the hypothetical, above, often require themanufacturer to place its insurers on notice of the potential claim. Typically, thecontract of insurance obliges the carrier to retain defense counsel for the manufacturer,20