Scottish Heritable Trust v. Peat Marwick Main & Co.

WIENER, Circuit Judge:

Defendant-Appellant Peat Marwick Main & Co. (Peat Marwick) appeals from an adverse judgment following a jury verdict that Peat Marwick is liable to a third party for negligent misrepresentations contained in audit reports. Concluding that Texas law does not permit the plaintiffs to recover in these particular circumstances, we reverse the district court’s judgment and render a take-nothing judgment in favor of Peat Marwick.

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FACTS AND PROCEEDINGS

The plaintiffs in this case are The Scottish Heritable Trust, PLC (SHT/PLC) and SHT Holdings (US), Inc. (SHT(US)) (collectively,…