Kohala Agriculture v. Deloitte & Touche

ACOBA, Judge.

We hold that the tort of negligent misrepresentation, as set forth in the Restatement (Second) of Torts § 552 (1977) (section 552), applies in actions against an accountant for the negligent obtaining and/or communication of information contained in an audit report. Under section 552, an accountant owes a duty to exercise reasonable care and competence in obtaining and communicating this information.

We further hold that section 552 governs actions brought by parties who are not clients of an accountant. With respect to such third parties, an accountant’s liability for the…