Appendix B: Long legal memorandum

• Author: Allan C. Hutchinson
• Pages: 263-271

memorandum

To: Senior LP Partner

Date: November 24, 2008

RE: Torts Liability of Business Professionals to Third Parties

1. introduction

You have asked me to prepare a memorandum analyzing negligent profes-

sional misrepresentation liability to third parties. The primary parties

involved are our client, Kevin Kashe, and the other side, which consists of

Fred Fudge, an accountant, and Precipice Bank. The main issue of this legal

analysis is whether Mr. Fudge or Precipice Bank can be held liable to Mr.

Kashe for their negligent statements made regarding the financial status of

a corporation. The problem falls under the main area of tort law. As you have

asked me to focus on caselaw, the research methodology used included an

analysis of caselaw from Canadian (both Federal and Provincial jurisdic-

tions) and United Kingdom (House of Lords) decisions. The Canadian

Encyclopedic Digest was consulted, followed by a keyword search for cases on

the online database Quicklaw.

2. facts

Our client, Kevin Kashe, was invited by his friend, Kari Kleane, to invest his

money in her company. Ms. Kleane had been advised by her accountant,

Fred Fudge, to incorporate her business so that she could sell shares to other

appendix b

long legal memorandum

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