Legal Updates

A lawyer representing a real estate transaction need not suspect that his client is a fraud and will not be responsible for his actions

August 4, 2020

A man sold land that was not his own through fake passports and the landowners demanded compensation from the lawyers who represented the fraudster.
The Supreme Court held that the attorneys who represented the fraudster are not personally liable to the landowner. A lawyer is not a private investigator or detective and in the absence of warning signs should not suspect that his client is a fraud or be responsible for his actions. Here the pictures in the two passports may have been suspicious in retrospect but in the examination of the negligence component, the reasonableness of the conduct at the time of its occurrence should be examined, as is known ‘in real time’ and not in retrospect. The rest of the conduct was not suspicious either and therefore the lawyer was not required to suspect that his client was a fraud and is not responsible for his actions.