Hartford Accident & Indemnity Co. v. Peat, Marwick, Mitchell & Co.

OPINION OF THE COURT

Harold Baer, Jr., J.

Defendant, Peat, Marwick, Mitchell & Company (PMM), moves pursuant to CPLR 3211 (a) (7) to dismiss the complaint.

Plaintiff, Hartford Accident & Indemnity Company (Hartford), paid the loss incurred by Environmental Defense Fund Inc. (EDF) resulting from five years of embezzlement by two EDF officers. Hartford insured EDF against the possibility of employee dishonesty. EDF retained PMM to audit its books prior to 1979. The retention continued until April 1984. Beginning in March 1979 and continuing until 1984, EDF employed Theodore Anderman as controller…