In what circumstances will the court find an independent duty for an attorney who conspired with the client to conceal material information from investors?

California, United States of America


The following excerpt is from Klotz v. Milbank, B255827 (Cal. App. 2015):

In that regard, this case differs from the cases in which the court found an independent duty. For example, in Pavicich, supra, 85 Cal.App.4th 382, the attorney conspired to conceal material information from investors and thus engaged in conduct beyond the provision of legal services, and violated an independent duty. (Id. at p. 397.) In Rickley v. Goodfriend, supra, 212 Cal.App.4th 1136, the attorney conspired with the client to assist the client in avoiding the client's remediation obligations, and thus engaged in conduct that violated a duty beyond the duties embodied in the provision of legal services. (Id. at p. 1158.)

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