Legal Opinion
International Mortgage Co. v. John P. Butler Accountancy Corp.
California Court of Appeal
Decided February 20, 1986No. G001099PublishedCited by 44 opinions
1Opinion of the Court
Opinion
TROTTER, P. J.
We are asked to declare for the first time that a certified public accountant (CPA) owes a duty of care to reasonably foreseeable plaintiffs who rely on alleged negligently prepared and issued unqualified audited financial statements.
John P. Butler Accountancy Corporation (Butler) entered into an agreement with Westside Mortgage, Inc. (Westside) to audit Westside’s financial statements for the year ending December 31, 1978. Butler completed its audit and issued unqualified audited financial statements on March 22, 1979.
Westside is a mortgage company that arranges…
2Cases cited21 opinions
- MacPherson v. . Buick Motor Co.New York Court of Appeals · 1916
- Rowland v. ChristianCalifornia Supreme Court · 1968
- Greenman v. Yuba Power Products, Inc.California Supreme Court · 1963
- Dillon v. LeggCalifornia Supreme Court · 1968
- Tarasoff v. Regents of University of CaliforniaCalifornia Supreme Court · 1976
16 more not listed; retrieve them via the Exa API.
3Cited by44 opinions
- Bily v. Arthur Young & Co.California Supreme Court · 1992
- Raritan River Steel Co. v. Cherry, Bekaert & HollandSupreme Court of North Carolina · 1988
- First Fla. Bank, NA v. Max Mitchell & Co.Supreme Court of Florida · 1990
- Blue Bell, Inc. v. Peat, Marwick, Mitchell & Co., Texas Court of Appeals, 5th District (Dallas)1986
- Badische Corp. v. CaylorSupreme Court of Georgia · 1987
39 more not listed; retrieve them via the Exa API.