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McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests
Texas Supreme Court (1999) | 991 S.W.2d 787; 1999 WL 249713
TL;DR: An opposing party sued a law firm for negligently misrepresenting facts in a settlement agreement. The court held that attorneys can be liable to nonclients for negligent misrepresentation, even without privity, if they supply false information intending for the nonclient to rely on it.
Legal Significance: This case establishes that the privity rule for legal malpractice does not bar a nonclient's claim against an attorney for negligent misrepresentation under Restatement (Second) of Torts § 552, creating a key exception to attorney immunity from third-party claims in Texas.