California Bar Journal
OFFICIAL PUBLICATION OF THE STATE BAR OF CALIFORNIA - OCTOBER 2000
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Ethics update...
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Selected recent authorities in the area of professional responsibility, both new authorities and pending proposals, are covered periodically in the California Bar Journal. Other developments in the field of legal ethics may be found online in  the Ethics Hotliner at the State Bar’s website, www.calbar.org.

Ethics Case

Rallis v. Cassady (2000) 84 Cal.App.4th 285

In a legal malpractice action based on the handling of a corporate transaction, the court found that an attorney-client relationship between a corporation’s attorney and the corporate directors, officers or shareholders as individuals may be created on the basis of an implied-in-fact contract. Regarding the tolling of the statute of limitations period by an attorney’s ongoing representation of a client, the court found that such tolling does not extend to subsequent litigation arising from the prior transaction in which the alleged malpractice occurred.