Roach v. Mead Or. S.Ct.,

722 P.2d 1229, 301 Or 383 (1986)

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Nature of the Case

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Facts

Mead (D) represented Roach (P) as his attorney over the years 1974-81. D formed a legal partnership with D1 in 1979. In 1980, P asked D for advice on investing $20,000 from the proceeds of a sale of a business. D gave P a promissory note for the whole amount at 15%. D offered to secure the loan through a second mortgage on his house, but upon P's deference to D's opinion, D did not secure the loan. Upon failure to repay the loan, P sued the partnership. P alleged a failure of legal advice and also alleged under the UTPA that the partnership created a likelihood of confusion concerning the service it provided to P, represented the legal service as having qualities that it did not possess, and misleadingly represented the nature of the loan. D never advised P to consult another attorney concerning the business transaction between them. P claimed that D1 was vicariously liable. D1 moved for a directed verdict, contending that he was not vicariously liable for the negligent acts of D because the negligent acts were outside the scope of the partnership's business. The trial court denied the motions, and the jury found D1 liable for $20,000 damages on both claims. The Court of Appeals held that D1 was vicariously liable for his former partner's negligence, but not liable under the UTPA claim. D1 appealed.