Legal Malpractice

Liability to 3d Parties for Minnesota Legal Malpractice

By (Andrew Lavoott Bluestone)

Hinshaw reports that the Minnesota Supreme Court has determined the rules for legal malpractice liability to third parties, in a business setting.  In New York, liability is generaly limited to situations in which the attorney issued an opinion letter relied upon by non-clients.  Here the rule is similar, and set forth:

"The court held that a party who is not an express client can sue a lawyer for legal malpractice in a business transaction from which the party expected to benefit only if the party was a direct and intended beneficiary of the lawyer's services or, in other words, if the benefit to that party is a central purpose of the transaction and the lawyer is aware of the client's intent to benefit that party. The court found no such evidence here.

The court also held that a party did not have an implied contractual attorney-client relationship with a lawyer unless the lawyer is aware of that party's identity, the party communicates with the lawyer and the lawyer is on notice that the lawyer is expected to represent that party. The court again found no such evidence here. "

Full post as published by New York Attorney Malpractice Blog on April 23, 2008 (boomark / email).