The United States trustee filed a motion to disqualify debtor’s counsel.  During a hearing on the motion, counsel for the United States trustee questioned the debtor-in-possession and her counsel objected.  The objections were raised on the ground of attorney/client privilege as the questions sought disclosure of the particulars of a conversation which took place prior to the filing of this bankruptcy case, between the debtor and her counsel concerning certain real property which the former wanted to transfer to her son and did in fact transfer to him prior to filing her Chapter 11 bankruptcy petition.

            The United States Trustee asserted that the conversation in question was not subject to a claim of privilege for two reasons: that the debtor waived the privilege by testifying about advice given to her by her counsel concerning other matters without claiming the privilege, and that the communication is excluded from protection by the crime/fraud exception to the attorney/client privilege.  The Court concluded that her testimony did not amount to a waiver of the right but that under the evidence before it the crime/fraud exception to the attorney/client privilege applied.