Appendix B: Long legal memorandum

AuthorAllan C. Hutchinson
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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