Privilege Waived as to Unprotected Information on File Share Site | Electronic Discovery Law. This Virginia decision should send chills down the spine of lawyers, as it holds that accidentally stored confidential files that are placed on a cloud site that is not password protected create a privilege waiver for the party who places them in the cloud. However, defense counsel, just because they are accessible cannot, under the Rules of Professional Conduct, access them, on pain of sanctions. Once an attorney becomes aware that he has accessed client confidential or otherwise protected information, he must stop and notify the other side and return all materials. Using the materials is sanctionable conduct. However, the lesson here is that all employees of a law firm or company must be trained in the methods of storing confidential data online. It is sometimes unclear which areas of a cloud site are protected by a password or two factor authentication, and which are not. It's a jungle out there.