In summary, the company's ToS allow it to access user data to "protect Google" so does that extend to everyone involved in a legal case against Google? Interesting implications for people (and govts) who have brought cases against Google while using Google services.
I bet the client and attorney were coordinating their case over gmail and gdocs and realized Google gave itself the legal right to access that data. I wonder if Google did something in the case that would only be explained by that action?