Does a lawyer owe a duty to a party that has not directly dealt with them?

Alberta, Canada


The following excerpt is from Eaton v. HMS Financial Inc., 2008 ABQB 631 (CanLII):

The Plaintiffs also argued that there is authority for lawyers owing a duty to parties with whom they have not directly dealt: Yang v. Overseas Investments (1986) Ltd., [1995] A.J. No. 58, at paras. 88 and 107 (Q.B. - Ritter J.), noting that the evidence was that the investors were relying upon representations that a “significant bond was held in trust as security for their investments by a lawyer”.

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