Katherine Allen and Katherine Allen, P.c., Petitioners v. Jack Steele and Danette Steele, Respondents

Summary

The court held that the Steeles did not state a claim for negligent misrepresentation because an attorney’s initial consultation concerning a potential civil lawsuit does not satisfy the requirement that the misrepresentation be made for guidance in a business transaction. The court also held that the cited Restatement provision concerning reasonable care owed to prospective clients cannot supply the basis for a negligent-misrepresentation claim. The court reversed and remanded for further proceedings. Justice Eid, concurring, agreed with the result but emphasized that the opinion does not decide the scope of that Restatement provision in legal-malpractice actions.