Garnac Grain Co. v. Blackley

ARNOLD, Circuit Judge.

Garnac Grain appeals several rulings of the District Court culminating in the dismissal of its accounting-malpractice and breach-of-contract claims against partners of the accounting firm Peat, Marwick, Mitchell & Company.1 We affirm in part and reverse in part.

I

The events leading to this litigation began in March 1976, when an employee in Garnac’s Kansas City office, Kathryn Milli-son, began embezzling from her employer. Millison accomplished most of her embezzlement by intercepting outgoing Garnac checks payable to vendors, adding her husband’s name to the check as a…