{"id":129,"date":"2017-11-06T17:02:00","date_gmt":"2017-11-06T22:02:00","guid":{"rendered":"https:\/\/www.businesslitigationtrends.com\/?p=129"},"modified":"2020-10-21T12:44:34","modified_gmt":"2020-10-21T16:44:34","slug":"legal-intelligencer-lawyers-held-liable-nonclients-negligence-pa","status":"publish","type":"post","link":"https:\/\/www.khflaw.com\/news\/legal-intelligencer-lawyers-held-liable-nonclients-negligence-pa\/","title":{"rendered":"Legal Intelligencer: Could Lawyers Be Held Liable to Nonclients for Negligence in Pa.?"},"content":{"rendered":"

\"ETK-2017-Head-Shot-200x300-1\"In the November 2, 2017 edition of The Legal Intelligencer<\/a>, Edward T. Kang<\/a>, managing member of the firm, writes on the liability attorneys face in regards to nonclients.<\/p>\n

In Pennsylvania, traditionally, if lawyers or other professionals, such as accountants, performed their professional duties negligently, they could only be held liable to those with whom they were in direct contractual privity\u2014in other words, their clients. Others who may have suffered damage because of that negligence\u2014for example, a party to a transaction relying on the other party\u2019s lawyer\u2019s faulty opinion letter, or a bank relying on an opinion letter prepared by a borrower\u2019s lawyer while extending credit to the borrower\u2014would be without a claim in tort.<\/p>\n

In much of the country, however, courts will extend the liability of professionals to cover nonclient third parties injured by the negligence of professionals in certain situations. This liability is typically found under a theory of negligent misrepresentation, adopted from\u00a0Section 522 of the Restatement (Second) of Torts. Section 522(1) provides: \u201cOne who, in the course of his business, profession or employment, or in any other transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information.\u201d<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In the November 2, 2017 edition of The Legal Intelligencer, Edward T. Kang, managing member of the firm, writes on the liability attorneys face in regards to nonclients. In Pennsylvania, traditionally, if lawyers or other professionals, such as accountants, performed their professional duties negligently, they could only be held liable to those with whom they […]<\/p>\n","protected":false},"author":12,"featured_media":131,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[414],"tags":[336,362,363,327],"coauthors":[535],"class_list":["post-129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publications","tag-legal-intelligencer","tag-liability","tag-nonclients","tag-pennsylvania","publication_lawyer-edward-t-kang"],"yoast_head":"\nLegal Intelligencer: Could Lawyers Be Held Liable to Nonclients for Negligence in Pa.? — Kang Haggerty News — November 6, 2017<\/title>\n<meta name=\"description\" content=\"In the November 2, 2017 edition of The Legal Intelligencer, Edward T. 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