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Major Clients Agency v. Diemer11/16/1998
nciples we have outlined, we hold that the judgment of the trial court was correct because Major Clients had no attorney-client relationship with Diemer, was not an intended beneficiary of the legal services which were rendered by Diemer to his client, and was a potential adverse party on the issue of commission obligations by Diemer's client to Major Clients. Even if it was foreseeable to Diemer that his advice to his client might have possible adverse effects on the interests of Major Clients, such is not sufficient reason to override public policy considerations and impose tort liability (See, e.g., Skarbrevik v. Cohen, England & Whitfield (1991) 231 Cal.App.3d 692.)
We hold that the ordinary rules of equitable indemnity apply here. Moreover, considerations of public policy buttress the principle that an attorney's duty of loyalty to his client should not be diminished by imputing to him legal obligations to the client's other advisors, be they attorneys or acting in some other capacity, unless such parties are clearly intended beneficiaries of the legal services being rendered. (See, e.g., Holland v. Thacher, supra, 199 Cal.App.3d at pp. 929-935, which discusses public policy considerations.)
4. The Issue of Leave to Amend
We consider finally whether Major Clients should be provided an opportunity to amend their pleadings, if they are able so to do, to allege facts sufficient to cure the defects in their previous attempts to state a cause of action. "On appeal from a judgment of dismissal entered after a demurrer has been sustained without leave to amend, unless failure to grant leave to amend was an abuse of discretion, the appellate court must affirm the judgment if it is correct on any theory. (Code Civ. Proc., ยง 472c; E. L. White, Inc. v. City of Huntington Beach [, supra,] 21 Cal.3d 497 . . . .) . . . The burden is on the plaintiff, however, to demonstrate the manner in which the complaint might be amended. [Citation.]" (Hendy v. Losse (1991) 54 Cal.3d 723, 742.) We conclude that the trial court did not abuse its discretion in dismissing the complaint without leave to amend. The record in this case shows that Major Clients has not met its burden in this case. It merely stated in its opposition to Diemer's demurrer that "if the Court finds the operative complaint deficient, Plaintiff respectfully requests leave to amend to bring that pleading within the purview of Parker v. Morton and Home Budget Loans." The brief presented to this court suffers from the same debility in that it fails to make an offer to allege facts which would establish a cause of action. The trial court ruled correctly.
In view of our Disposition, it is unnecessary that we address the issue of the statute of limitations.
Disposition
Since appellant cannot state a viable cause of action against respondent for equitable indemnity, the trial court's ruling was correct. We affirm.
CERTIFIED FOR PUBLICATION.
DUNN, J. *
We concur:
SPENCER, P.J.
ORTEGA, J.
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