Northwest Racquet Swim & Health Clubs, Inc. v. Deloitte & Touche

OPINION

KEITH, Chief Justice.

This case arises from the purchase by appellant Northwest Racquet Swim and Health Clubs, Inc. (“Northwest”) of $15 million in subordinated debentures from the now insolvent Midwest Federal Savings & Loan Association (“Midwest”). Respondent Deloitte & Touche (“Touche”) performed audit work for Midwest for several years prior to the debenture transaction. At the trial court, Northwest alleged that Touche participated in a plan with Midwest that resulted in material misstatements in Midwest’s 1986 year-end audited financial statements, on which Northwest relied in…