Brant Ranger, Paula Potts and Matthew Lane Are All Tax

Multiple Choice

Brant Ranger, Paula Potts and Matthew Lane are all tax lawyers and partners in Ranger Potts & Lane LLP. They practiced together and were successful for many years before the partnership ran into difficulties. Lane was retained by Phillip Schooner, a wealthy client. Lane acted negligently for Schooner in several income tax transactions which breached the Income Tax Act and caused millions of dollars in losses to Schooner. Schooner brought a legal action over this. Which of the followings statements is TRUE? Schooner can claim against

A) the firm's assets
B) none of the partners' personal assets
C) the firm's assets and the personal assets of Lane only
D) the firm's assets and all of the partners' personal assets
E) only the insurance provider for the firm