This appeal involves a claim by a seller of real estate against the buyer’s closing attorney and his law firm for the closing attorney’s alleged negligence in drafting the warranty dеed from seller to buyer. Appellee Richard J. Cox entered into a contract to sell Rotomco, Inc., certain real estate located in Newton County. Rotomсo employed appellant Charles J. Driebe and his firm Driebe & Driebe, P.C. to close the sale. Relying on a survey prepared by East Metro Surveyors, Inc., who are also third-party defendants below, Driebe prepared a warranty deed wherein Cox purported to transfer 130.1 acres to Rotomco. Cox in fact did not own approximately 4.5 aсres of that tract. Cox *9 attended the closing with his attorney.
Approximately a year later, an attorney, representing the owners of the 4.5 acre tract that was erroneously transferred, contactеd the parties to this transaction pointing out the mistake. Rotomco made a demand on Cox to refund the apportioned part of the purchase price, which wаs determined to be $25,076.88. Cox refused. Driebe then paid the lender the apportioned purchase price and obtained the necessary quitclaim deeds from Rotomcо and Rotomco’s lender for the true owners.
Rotomco thereafter sued Cox for breach of his warranty of title and for his failure to pay the requested apportioned value of the 4.5 acre tract. Cox responded denying liability and filed a third-party action against Driebe, his law firm (hereinafter collectively “the Driebe defendants”) and the surveyors. This case was tried before a jury and bifurcated as to the two claims: (1) the “main” claim in which Rotomco sought damages against Cox for breach of warranty; and (2) the “third-party” claim in which Cox sought indemnity against the Driebe defendants and the surveyors. The jury returned a verdict in favor of Rotomco against Cox on the main claim in the amount of $17,510.32. On the third-party claim, the jury returned a verdict in favor of Cox, finding that he was entitled to indemnity from the Driebe defendants in the amount of $15,759.38 and from the surveyors in the amount of $875.52. The Driebe defendants filed this appeal frоm that judgment.
1. This case presents the novel issue to this court of whether the attorney for the buyer in a real estate transaction can be held liable to the seller for negligence in legal work in connection with the sale. Before an action for malpractice or negligence can lie against an attorney, there must be a legal duty frоm the attorney to the plaintiff. Like many states, the trend in Georgia has been to relax the rule of strict contractual privity in malpractice actions, recognizing that under сertain circumstances, professionals owe a duty of reasonable care to parties who are not their clients.
In deciding whether Driebe owed a duty to Cox, we аre guided by other decisions of this court in which we were asked to consider whether an attorney had a duty to a third party in a real estate transaction. In
Simmerson v. Blanks,
In
Kirby v. Chester,
In
Tower Fin. Svcs. v. Mapp,
We find the case sub judicе to be distinguishable from our decisions in Simmerson and Kirby in which we held the attorney had a legal duty to third parties in a real estate transaction. In this case, the evidence shows Cox knew that Driebе was hired by Rotomco to close the transaction and that Driebe was not representing Cox’s interests at the closing. In fact, Cox brought his own attorney to the closing. Cox, however, chose to limit the role of his attorney “[t]o read[ing] over the legal documents and mak[ing] sure that whatever was written down was presented properly and the figures, the calculations as far as the closing, taxes and those things protected [his] interest. ...” Driebe made no gratuitous promise to Cox as did the attorney in Simmerson, nor can Cox be considered a third-рarty beneficiary to the contract between Rotomco and Driebe, as was the lender in our Kirby decision.
Essentially Cox argues that because his interest in the property was known to Driеbe, he was in a class of foreseeable persons to whom Driebe owed a duty to act in a reasonable manner. In support of this argument, Cox relies heavily upon thе Georgia Supreme Court’s decision in
Bradley Center v. Wessner,
Cox’s reliance on the Georgia Supreme Court’s decision in
Bradley Center
is misplaced given the factual distinctions between the cases. Unlike the victim in
Bradley Center,
Cox should have hаd at least equal, if not superior, knowledge of how much property he owned and could convey to Rotomco. Driebe could not subject Cox to “an unreasonable risk of harm” by stating that Cox owned more property than he did, when Cox should have been aware of what he owned. Cf.
Badische Corp. v. Caylor,
The trial court erred in concluding that Cox had a cause of action against Driebe under the facts of this case. Cox had no reason to rely on Driebe or to believe that Driebe would be representing his interests at the closing. By not carefully checking the сlosing documents and by limiting the role of his attorney at the closing, Cox chose to act to his detriment and has no recourse against Driebe. We note that many of our sister states have refused to recognize a cause of action in similar situations. See, e.g., Fox v. Pollack, 226 Cal. Rept. 532 (Cal. App. 1 Dist. 1986); see generally Annotation, What Constitutes Negligence Sufficient to Render Attorney Liable to Person Other than Immediate Client, 61 ALR4th 464 (1988).
2. Our holding in Division 1 makes it unnecessary to consider the Driebe defendants’ remaining enumerations of error.
Judgment reversed.
