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Professional Responsibility Keyed to Gillers
Smith v. Haynsworth, Marion, McKay & Geurard
Citation:
322 S.C. 433, 472 S.E.2d 612 (1996)Facts
The plaintiff Smith was involved in a business transaction with a client represented by the defendant law firm Haynsworth, Marion, McKay & Geurard. Smith alleged that the law firm was negligent in its representation, causing him harm despite not being their client. The traditional rule in South Carolina had been that attorneys could not be liable to non-clients due to lack of privity. However, in this case, the Supreme Court of South Carolina recognized the evolving nature of attorney liability and established that in certain circumstances, attorneys may owe a duty of care to non-clients. The court adopted a balancing test to determine when such liability might exist, considering factors such as the extent to which the transaction was intended to benefit the non-client, foreseeability of harm, and the policy of preventing future harm.
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