Texas Firm Beats Fraud Suit For Keeping Mum On Noncompete

Law360, Dallas (March 15, 2013, 4:26 PM EDT) -- A Texas appeals court on Thursday said Texas law firm Blanscet Sutherland Hooper & Hale LLP didn’t commit fraud by failing to disclose a client’s noncompete agreement barring him from running charity golf tournaments to the client’s partners in a similar venture.

The Dallas Court of Appeals said while third parties can sue attorneys for negligent misrepresentations in some circumstances, a lawyer’s duty to nonclients is limited and reliance on an unaffiliated attorney’s statements isn’t justified in an adversarial context. The panel said it would not...
To view the full article, register now.