Johnson Bank v. George Korbakes & Co., LLP

POSNER, Circuit Judge.

In this diversity suit governed by Illinois law, a bank complains that it lost money as a result of errors in an audit of one of its borrowers, Brandon Apparel Group, Inc., by the defendant, GKCO. The bank contends both that it is a third-party beneficiary of the letter contract by which Brandon retained GKCO to conduct the audit and that GKCO committed the tort of negligent misrepresentation. The district judge rejected the bank’s contract claim without much discussion but conducted a bench trial of the tort claim and after-wards entered judgment in GKCO’s favor on both…