Legal Opinion

A development company working with a vacation resort asked its associate general counsel for advice regarding development of an adjoining property. The development company relied on the associated general counsel’s written legal opinion about the costs involved in developing the property. His estimate was far less than the final cost of the property development and the company incurred close to $1 million in additional costs. In response to this loss, the company sued the general counsel for breach of fiduciary duty, negligence and conflict of interest. The case settled for $500,000.