The Risk Manager, Winter 1996

Item -- Dateline Indiana: The lawyer for a lender who made changes in a document that the borrower had approved in draft form owes a duty to the borrower to disclose changes made subsequent to borrowers approval. Wright v. Pennamped, Ind CttApp, No. 49A05-9405-CV-207,11/9/95; p. 373 Current Reports, ABA/BNA Lawyers’ Manual on Professional Conduct, Vol. 11 No. 23, 12/13/95.

Item -- Dateline New Mexico: The Supreme Court adopted a multi-factor balancing test for determining liability to the beneficiaries of an estate of a lawyer for the personal representative in a wrongful death action. Leyba v. Whitley, NM SupCt, No. 22,309, 10/11/95; p. 374 Current Reports, ABA/BNA Lawyers’ Manual on Professional Conduct, Vol. 11 No. 23, 12/13/95.

Item -- Dateline New Jersey: Nonclients who foreseeably relied on information produced by attorneys in offering statements for clients selling condominiums may sue the lawyers for malpractice. Atlantic Paradise Associates Inc. v. Perskie, Nehmad & Zeltner, NJ SuperCt AppDiv, No. A-6840-93T1, 11/2/95; p. 375 Current Reports, ABA/BNA Lawyers’ Manual on Professional Conduct, Vol. 11 No. 23, 12/13/95.

Item -- Dateline New Hampshire: The New Hampshire Supreme Court endorsed a new tort of “Malicious Defense.” Described as a mirror image of malicious prosecution, a defense lawyer who initiates defensive measures that are or should be known to lack merit or credible basis is liable to the opposing party along with the client. Moreover damages are not limited to attorney’s fees. Aranson v. Schroeder, NH SupCt, No. 93-519, 10/31/95; p. 376 Current Reports, ABA/BNA Lawyers’ Manual on Professional Conduct, Vol. 11 No. 23, 12/13/95.