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Showing posts with label breach. Show all posts
Showing posts with label breach. Show all posts

Monday, November 28, 2022

Court - Attorneys Can Advise Clients to Breach Contracts

People are often shocked to learn that their attorney can and, sometimes, should advise them to breach a contract. This shock is probably because of the known fact that if anyone else advises their client to breach a contract, even if it would be in their best interest, such advice could constitute an actionable wrong by the advising party that would get them sued for tortious interference with a contract.


However, that is not the case for attorneys. 


As the Appellate Division, Second Department, recently reminded us in Asamblea De Iglesias Christianas, Inc. v DeVito

"Absent a showing of fraud or collusion, or of a malicious or tortious act, an attorney is not liable to third parties for purported injuries caused by services performed on behalf of a client or advice offered to that client" (id.; see Doo v Berger, 227 AD2d 435, 436).

This is really important case law because sometimes the exposure (a/k/a, cost) of the breach is less than the cost of honoring the contract and therefore, businesses and individuals alike can be better off by not being bound by their word and a breach might be advisable. So, before you act on a contract that is giving you second thoughts, don't see your best friend, see your attorney.