Allied Finance and Investments Ltd v Haddow & Co - [1983] NZLR 22

Negligence — Economic loss — Duty of care — Liability of solicitor — Director and company both clients of defendant firm of solicitors — Director arranged loan from plaintiff ostensibly to finance purchase of yacht — Director signed security documents in his own name — Defendant returned executed documents to plaintiff's solicitors with letter certifying that instrument by way of security was "fully binding" on director — Defendant did not advise plaintiff that yacht was owned by the company and that the director was not, and would not become, its owner — Loan not repaid — Director adjudicated bankrupt — Plaintiff sued defendant for money owing — Whether defendant liable — Whether a solicitor may owe a duty of care in tort and be liable for negligence to a party other than the client by whom he has been retained.