§ 10.6.4 AVOIDING DIRECT LIABILITY FOR THIRD-PARTY INTERESTS

JurisdictionArizona

§ 10.6.4 Avoiding Direct Liability for Third-Party Interests

Although attorneys are not generally liable for the third-party debts or obligations of their clients, that can be altered by statute, agreement, or conduct. See, e.g., Emp'r. Reinsurance Corp. v. GMAC Ins., 308 F. Supp. 2d 1010 (D. Ariz. 2004) (finding no attorney liability for disbursing proceeds based upon an assortment of state law claims); 1 G. Hazard, Jr., W. Hodes, & P. Jarus, The Law of Lawyering § 20.06 (4th Ed. 2015).

Indeed, "[a]...

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