Wales v. Marlatt

Defendant Marlatt1 (defendant) appeals from a judgment in favor of plaintiffs in this professional malpractice action. We reverse.

This action arose as a result of a 1983 transaction in which defendant, an investment counselor, arranged for plaintiffs to purchase for $35,200 a promissory note with a face amount of $40,000 from Commercial Rabbitry and Equipment, Inc. (CRE). The note was secured by a warehouse building that was on leased property and also by a personal guarantee of Garrett, the original holder of the note.2 Defendant had received a real estate appraiser’s letter opinion that,…