Security Pacific Business Credit, Inc. v. Peat Marwick Main & Co.

OPINION OF THE COURT

Bellacosa, J.

Plaintiff, an institutional lender lacking a contractual or other direct business relationship with defendant accounting firm, seeks to hold the defendant liable for alleged negligence committed by defendant’s predecessor in its 1984 audit of financial statements of its client, Top Brass Enterprises, Inc. (Top Brass). In October 1984, plaintiff, Security Pacific Business Credit, Inc. (SPEC), an asset based lender, and Bankers Trust Co.* loaned Top Brass approximately $40 million on a $50 million line of credit, secured by Top Brass’s accounts receivable and…