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...
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