Multistate Professional Responsibility Exam Practice Question
Mia, a lawyer, prepared a memorandum for her client’s fundraising campaign stating that the property in question was free of claims. The client provided this memorandum to prospective contributors, who donated funds while relying on Mia’s statements. It was later discovered that the property was subject to a significant lien, causing financial harm to the contributors. Is Mia subject to liability to these contributors?
Mia does not owe a duty because her representation is directed at her client
Mia is protected from claims because disclaimers in the documentation cover the risk
Mia is liable if she allowed or expected the prospective contributors to rely on her statements and she did not confirm their accuracy
Mia is restricted from using disclaimers to defend her statements to contributors
Attorneys are subject to liability to nonclients when they invite or approve reliance on an inaccurate representation made for those nonclients. Here, the contributors were prompted to rely on Mia’s memorandum. If she allowed or expected them to rely on her statements and did not verify relevant facts, she is open to liability. Stating that the representation was directed at the client alone does not prevent nonclients from relying, especially where reliance is reasonably expected. Disclaimers by themselves do not guarantee immunity, and limits on disclaimers often exist when the lawyer’s conduct encourages third parties to act on the lawyer’s statements.
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Multistate Professional Responsibility Exam
Competence, legal malpractice, and other civil liability