In Re Grand Jury Subpoena 92-1(sj). Appeal of the Corporation. 1

Opinion by Senior District Judge McGOVERN.

The Corporation appeals the district court’s denial of its motion to quash a grand jury subpoena served on its corporate counsel. The Corporation also challenges the district court’s order to submit the subpoenaed documents for in camera review to establish whether they fall within the crime-fraud exception to the attorney-client privilege. This case presents a novel issue in applying United States v. Zolin, 491 U.S. 554 , 109 S.Ct. 2619 , 105 L.Ed.2d 469 (1989): In determining whether a party requesting in camera inspection has made a sufficient threshold showing under the crime-fraud exception, must a district court consider countervailing evidence presented by the party asserting the privilege?

FACTS AND PRIOR PROCEEDINGS

For over two years, the Corporation has been the focus of a federal grand jury investigation of potential export control violations. The Corporation manufactures and exports global positioning systems (GPS) units. These units, which receive and process satellite signals, may be used for both civilian and military purposes.

In February 1988, the Corporation asked its corporate counsel for assistance in obtaining…