Opinion ID: 1163359
Heading Depth: 1
Heading Rank: 4

Heading: The consequences of placing the burden upon the actor.

Text: The consequences of imposing third party liability upon attorneys have not yet been fully explored. Arguably, benefits will accrue to all individuals involved in third party transactions if attorneys undertake to more carefully assess risks. However, burdening attorneys with a duty to parties other than their client raises questions regarding impermissible conflicts of interest. [22] The attorney may find herself placed in the middle of a transaction, liable to both parties. See, e.g., Douglas A. Cifu, Expanding Legal Malpractice to Non-Client Third PartiesAt What Cost?, 23 Colum.J.L. & Soc.Probs. 1, 13 (1989); see also Goodman v. Kennedy, 18 Cal.3d 335, 134 Cal.Rptr. 375, 381, 556 P.2d 737, 743 (1976): The attorney's preoccupation or concern with the possibility of claims based on mere negligence (as distinct from fraud or malice) by any with whom the client might deal would prevent him from devoting his entire energies to his client's interests. The result would be both an undue burden on the profession and a diminution in the quality of the legal services received by the client. (internal citations omitted). The majority fails to give adequate consideration to all of the policies implicated in imposing liability. Based upon my understanding of those policies I am not persuaded that counsel owed a legal duty to the Bank. III. Summary judgment Even under the majority's rationale, the district court properly dismissed the Bank's claims upon summary judgment. The majority correctly sets forth the standards for granting summary judgment. Maj. op. at 235. Genuine issues of material fact, however, are not raised simply by means of counsel's argument, but must be raised by specific factual allegations showing a factual controversy. See Goldman v. Union Bank and Trust, 765 P.2d 638, 640 (Colo.App.1988). Assuming counsel owed a duty to the Bank, under the circumstances of this case no factual controversy has been demonstrated, and the Bank's claims should be dismissed as a matter of law. Restatement (Second) of Torts, section 552 provides that: (1) One who, in the course of his business, profession or employment, ... 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. Restatement (Second) of Torts § 552 (1976). [23] In my view two of the prerequisites to establish a claim for negligent misrepresentation are not present as a matter of a law.