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STEPHENS INDUSTRIES, INC. v. HASKINS AND SELLS

No. 229-70.

438 F.2d 357 (1971)

STEPHENS INDUSTRIES, INC., and Morris Stephens, Plaintiffs-Appellants, v. HASKINS AND SELLS, Axel Ahlberg, Jack Crane and Arlo M. Hall, Defendants-Appellees.

United States Court of Appeals, Tenth Circuit.

March 1, 1971.

Attorney(s) appearing for the Case

William L. Bromberg, Denver, Colo. (Richard A. Miller, Des Moines, Iowa, on the brief), for plaintiffs-appellants.

David M. Ebel, Denver, Colo. (Robert H. Harry, Denver, Colo., and Michael Cooper, New York City, on the brief), for defendants-appellees.

Before BREITENSTEIN, HILL and SETH, Circuit Judges.

HILL, Circuit Judge.

The substantive issues in this appeal involve the liability of public accountants to third parties with whom they are not in privity. Haskins and Sells, an accounting firm, was engaged by two car rental companies to determine the net worth of those businesses by preparing an audited statement. The audit was performed and upon the basis of the figures reflected in the resulting balance sheet, Stephens Industries, Inc. purchased two-thirds of the...

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