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 Bars website, www.calbar.org.
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
corporations 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 attorneys 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.