Raritan River Steel Co. v. Cherry, Bekaert & Holland

MEYER, Justice.

The issue we are presented with in this case is whether a trade creditor to a closely held corporation is a third-party beneficiary to the corporation’s contract with an accounting firm for the performance of an audit. The accounting firm agreed to perform an audit “in conformity with generally accepted auditing standards,” and furnished the audit to the corporation. The trade creditor did not see the audit but reviewed a summary of it published in a Dun & Bradstreet report, which apparently overstated the corporation’s actual financial position. Allegedly on the basis of the…