Exam 6: An Introduction to the Legal Relationship

The Civil Code of Quebec establishes a fixed time limit of ten years from the date of completion of the project for any claim of negligence against an engineer or architect in Quebec.

A duty to place a client's interest above the professional's own interests is known as:

In solicitor-client privilege, the lawyer normally has no legal obligation to reveal any confidential information to legal authorities or to anyone, unless:

Leonard was an entrepreneur who owned a restaurant business called, Blue Moon Diner Ltd. The business was located in an old house owned by Leonard. Lauren, the accountant, was preparing financial statements for the purpose of selling Blue Moon Diner Ltd. She assumed that the house was an asset of Blue Moon Diner Ltd. and did not review the land title or check with Leonard. Alicia purchased the business for $500 000, believing that the house was an asset worth $450 000 and the business was worth $50 000. Can she sue Lauren?

The duty of a lawyer to keep confidential information provided by a client is called client-professional privilege.

The case of Hercules Management Ltd. v. Ernst and Young (1997) makes the following contribution to the law regarding professional liability of accountants at Common Law:

A fiduciary duty of care may also arise in a situation where a professional agrees to perform a service without a fee.

Professional negligence extends beyond carelessness in carrying out duties, but does not extend to statements made and information provided to clients.

A successful negligence suit against a member of a profession must measure the ________________ of the particular practitioner with that prescribed by the profession in general, and must show in the evidence that the practitioner failed to meet that standard.

How would the duty of care be determined for persons who are not members of a professional association, but who hold themselves out as persons in possession of special expertise? Use an insurance agent as an example.

An engineer designed an outdoor elevated patio that was expected to accommodate luncheons of up to 100 persons. The engineer considered the load-bearing structure on the basis of the weight of 200 persons as a safety factor. When the structure was completed, the owner decided to use the patio for a local charity concert, and sold 400 tickets. In actual fact over 400 patrons attended, and packed the patio for a "standing room only" concert. The enthusiastic crowd at one point began jumping to the music, and the additional load pressure caused the structure to collapse, injuring many of the patrons. How would liability be determined in this case?

Terry carried on a relatively successful business as a manufacturer of a cleaning product. After a few years of slow but steady growth, his accountant suggested that he expand the business by incorporating. This would allow the sale of shares to acquire the capital needed for expansion into a new plant with new equipment. The company was eventually incorporated but instead of selling shares, Terry decided to arrange a $200 000 loan from the bank and therefore, asked his accountant to prepare financial statements for the bank. During preparation, the accountant failed to notice that the existing land and plant building were not acquired by the corporation, but retained by Terry and leased to the company on an annual basis. The accountant had included the land and building (value: $250 000) as an asset of the corporation on the financial statements without verifying this information with Terry to determine if the property had been transferred. When the error was later discovered during negotiations with the bank, the bank insisted that Terry guarantee the loan as a principal debtor, and use the land/building as additional security for the loan. A few weeks later, Terry decided that it would be necessary to acquire additional capital to complete the company expansion. He contacted a private investor, Kelly, intending to sell her a block of shares in the corporation. Kelly inquired as to the financial status of the corporation and Terry informed her that the corporation had borrowed $200 000 from the bank for the purpose of expanding the business. He also suggested that Kelly contact either his accountant or the bank for information on the corporation's assets and financial position. Kelly contacted the bank, requesting copies of the financial statements the accountant had prepared. A bank employee, who was unaware that the statements were erroneous, gave them to Kelly without comment. Based on the strength of the financial statements, Kelly invested $50 000 in shares of the corporation. Some months later, she discovered that the corporation did not own the land or buildings, and that the financial statements were in error. Advise Kelly of her legal position, and her rights (if any) against Terry, the accountant, and the bank.

A surgeon who negligently performs an operation on a patient may be liable in tort to the patient, and only the patient.

For many professions, the standard of care extends beyond the single performance of the service, and the professional may also be required to

One of the obligations upon professionals acting in fields that can create tort liability is the obligation to __________ and _____________ from the party who will be affected by the professional service.

Manno had injured his knee and required laparoscopic knee surgery. During his appointment with the surgeon, Dr. Cutter, Manno was advised of the risks associated with the surgery including death and limited mobility in his knee. Dr. Cutter did not discuss scarring if traditional surgery was required. Manno signed the consent form. In the operating room, Dr. Cutter concluded that laparoscopic surgery would not repair Manno's knee and he had to make three large incisions in a traditional method. Manno's knee was repaired but he had three large, unattractive scars. Manno was a male model. Can Manno successfully sue Dr. Cutter?