Dynastion Energy v. Yung CA2/4
Dynastion Energy, S.R.O. (Dynastion) appeals from an order sustaining, without leave to amend, the demurrer of defendants Lewis, Brisbois, Bisgaard & Smith (Lewis, Brisbois) and John P. Yung (Yung), a Lewis, Brisbois partner, to Dynastion’s complaint for aiding and abetting fraud. The complaint alleged Dynastion invested in a joint venture with Yung’s client. Dynastion also alleged Yung knew his client had failed to perform its obligations in a previous joint venture involving the same business enterprise, but Yung failed to disclose this information to Dynastion. In sustaining the demurrer, the trial court held the agent’s immunity rule, under which duly acting agents cannot be held liable for conspiring with their own principals, barred Dynastion’s claim. We reverse, concluding that an exception to the rule applies where, as here, the complaint alleges the attorney was aware of the client’s previous failure to perform in a similar joint venture.
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