CHEM-AGE INDUSTRIES, INC. v. GLOVER

No. 22180.

652 N.W.2d 756 (2002)

2002 SD 122

CHEM-AGE INDUSTRIES, INC. a South Dakota Corporation; Roger O. Pederson, and Garry Shepard, Plaintiffs and Appellants, v. Alan F. GLOVER, Defendant and Appellee, and Byron Dahl, Lynn Dahl, and Doug MacNiel, Defendants.

Supreme Court of South Dakota.

Decided October 2, 2002.


Attorney(s) appearing for the Case

Lee Schoenbeck, Watertown, SD, for plaintiffs and appellants.

Thomas J. Welk of Boyce, Murphy, McDowell & Greenfield, Sioux Falls, SD, for defendant and appellee.


KONENKAMP, Justice.

[¶ 1.] We are confronted with the question whether a lawyer who incorporates a business on behalf of an individual client owes any duty of care to the corporation thus created and to its director-investors who have no contractual relationship with the lawyer. While obtaining substantial funds and credit from two investors, the client had his attorney incorporate a business, naming the two investors...

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