The group representing general counsel at FTSE-100 companies has been refused permission to intervene in a case on the extent of privilege enjoyed by in-house lawyers – on the ground that neither it nor its members have a ‘direct interest in the result’.

Issuing preliminary rulings in the long-running Akzo Nobel case, the European Court of Justice also refused to allow interventions by the Law Society, American Bar Association, International Chamber of Commerce, United States Council for International Business, and American Chamber of Commerce.

The Dutch chemical company is appealing against a ruling of the Court of First Instance that, in cartel investigations, legal professional privilege does not extend to communications between in-house lawyers and other company staff.

The British, Irish and Dutch governments are supporting the appeal. The lower court has agreed to interventions by the European Company Lawyers Association and American Corporate Counsel Association, as well as the Council of Bars and Law Societies of Europe (CCBE) and International Bar Association.

In a ruling that surprised observers, the court said the appeal was case-specific: ‘Therefore the questions raised are not sufficiently closely connected to the general aims pursued by GC100.’

In a statement, the group said: ‘GC100 is disappointed that the application has been denied as we believed we had a legitimate interest in the case. We are considering next steps, including how to communicate our position and any supporting materials through an existing party to the proceedings.

‘We remain firmly of the belief that it would be good public policy and would enhance corporate compliance programmes if communications with in-house counsel attracted legal professional privilege in the way that communications with outside counsel do.’

Unlike the other applications rejected on the ‘direct interest’ ground, the Law Society’s application was refused because it is a member of the CCBE and was unable to show that it had a separate interest from the body that represents lawyers at an EU level.

Mark Stobbs, the Law Society’s director of policy, said: ‘Clients and employers should have the same protections regarding confidentiality whether they go to an employed lawyer or one in private practice. We are disappointed that we have not had the opportunity to argue this point in the interests of employed lawyers in front of the court.’