On March 15, 2011, a magistrate judge from the United States District Court of the Northern District of Georgia held the relationship between the private employees providing outsourcing services to the City of Sandy Springs and the attorneys representing the City justified application of the attorney-client privilege, assuming all other elements of the privilege are met. Flanigan's Enterprises, Inc. of Georgia, et al. v. City of Sandy Springs, Georgia, Civil Action File Number 1:09-cv-2747-RLV, United States District Court, Northern District of Georgia. The outsourcing of municipal services to private companies is a relatively new practice in Georgia. With Sandy Springs blazing the trail in 2005, other cities have followed its lead. CH2M Hill and other companies are now partnering with public clients, like the City of Sandy Springs, Dunwoody, Milton and Johns Creek to provide services such as human resource, code enforcement, planning, zoning, permitting, licensing, informational services and financing. This partnership between local government and private company to perform municipal services presents legal issues that are unique to this type of contractual relationship.
For instance, this relationship between the city and the private company employee is an independent contract relationship. The private employee is not an employee of the city, although he acts like one in all respects except his paycheck comes from a private source. When applied against the traditional attorney-client communication test, the relationship does not fit squarely into the elements qualifying for privilege. view more