St. Paul Fire & Marine Insurance v. Touche Ross & Co.

St. Paul Fire & Marine Insurance Company (St. Paul) appeals the sustainment of a demurrer and dismissal of its lawsuit against a firm of certified public accountants, Touche Ross & Co. (Touche Ross). We affirm in part, reverse in part, and remand with direction.

In the first of two causes of action, St. Paul alleges that financial statements and work papers prepared by Touche Ross to assist Commonwealth Companies, Inc. (Commonwealth), in obtaining surety credit were inaccurate and misleading and constituted negligent misrepresentation. In its second cause of action, St. Paul alleges that…